How do I start investments and savings

Savings and investments is necessary as per the future perspective for finance stability and financial independence. No one wants to keep working for forever or specially in old age. Or You may not like to do work after decade or two decades, So here are key points and concepts that help you to understand that How do I start investments and savings :

Thumb rule says we should save and invest 15-20 % of our income. Let’s say if your salary or monthly income is 40k then you have 8k to save and invest. Now you can invest half of in saving and half of in investment, you can further split your savings and investment in different area as per the rate of interest and returns on them.
Also you need take risk factor in your mind – how much you may bear risk while investing in mutual fund and share market. This is for safer side that you not investing blindly in Mutual funds and Share market.

Here is the example of 8k monthly investment, with half at no risk and other half may have risk but as well as better returns opportunity –

  • 4k – 2k RD(Recurring Deposit) monthly and FD(Fixed Deposit) yearly (2k*12 Month) 24k
  • 4k – 2k SIP(Mutual funds) and 2K in share market or 3k SIP and 1k share market or vice-versa 

Key points :

After a period of time you may stop investing in the share market and mutual funds, If you think you have bought enough shares of multiple companies. Always buy multiple companies shares even if there is a tiny quantity there like 2, 4, 5 , 10 or 15, 20. Never invest all money in single company or one sector.

This way we have secure savings and low risk on investments. We have compounding 99% sure on our RD and FD. And also we divided share market investment in multiple sectors and companies so there are very low chances of risk and loss. If all companies will do bad at the same time, then there is some crisis with all peoples, you don’t need to worry more about it, whole market seems down and we invested for a long time so be relaxed. 

RD and FD is very useful when you have sort terms goal like in 1 year , 2 year or 5 year you need money for something like 1 lac , 2 lac or 5 lac you can easily archive this if start saving for your plan.

Strategies : RD and FD are straight forward savings. For mutual funds and share markets investments, it requires little research and knowledge about it. For example – We need to keep an eye on new events, launches and announcements from companies. So subscribe some market news letters or start reading about business magazine, blog etc. Make notes of things like
Market graph : It goes down in March. April and Sept-oct.
You can invest directly into companies bonds.

When you see Results : Compounding play very good role in finance stability, people under-estimate the power of compounding. Banking sector is very good example of compounding, they gave less interest rate on our money and high interest rate on loan given by them. All the good investor knows its power very well and they start savings in early age. So start savings via RD and FD as soon as you can.
Also share market give very good return if you investing for long time. Many share gives returns like 2X, 3X or 5X, 10X in couple of years or in few years.

Disclaimer : Investing in mutual funds and share market is subjected to market risk. Please do research before investing into it. This blog never suggest to invest into it, this blog is for education and learning purpose.

If you like the above points and think it is useful, please share it with friends and family, it may also help them and please provide your comments and feedback so we can provide you better to better things. Also for personal growth and success, please check out more article here Personal Growth. Thanks

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