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How to invest if there isn’t enough money in hand?

As a basic principle of financial planning, there is an important thing one should understand- Investments can be made even with a small amount of money.

“It is easy to advise that- it is a good habit to start investing earlier, but it can be possible only if one has money for investing”- most of the people with respectively low-income level has seen responding like this when they are briefed about the importance of investing. This is due to the misconception that one will need a huge amount of money to make investments.

Most of the people don’t show any interest to start investing as they are short of money. Even people who say that there is no reason in earning small income will include every bit of their income for expenses.

But these people have to understand one thing as the basic principle of financial planning- investments can be started with even a small amount of money. For example, one only has to keep aside Rs 500 per month for investing in mutual funds through systematic investment plan every month.

Waiting to have enough amount of money to start investing in mutual funds will only delay the investing process. People, who can only earn less, should not stand by for having a large amount of money to start investing. First, one should start investing as soon as possible with even the little-earned income.

One should consider starting an investing habit from the time of receiving first income. Slowing down to start investing will lead to the delay in fulfilling life goals.

If one has started an investment plan, then he/she should ensure that the investing is done on a regular basis. For this one should have a good grip over the expenses.

Saving one rupee from expense today is having the one rupee more for tomorrow. The money spent at the movie theatres and for roaming around in the city on holidays can become the wealth for tomorrow. Small savings might not provide great returns in a short period, but in long-term investments, it can help you reap greater benefits.

Consider increasing the money for investing as your salary increases. For most of the people, expenses take a hike as income increase. This is due to the inability or negligence in controlling the expenses according to the income. So, if one doesn’t adjust their expenses according to the salary hike then it might become difficult to earn in proportion to the increase in income.

It is important to keep a calm mind and wait for the investments to grow. Also, be patient for the time it takes to achieve goals. Investors should be ready to wait for reaping good benefits from investment methods like Systematic Investment Plan. Also, investors should realize that the fluctuation in the value of mutual funds invested in the share market is a normal thing.

[schoolofhedge-blog]

What Should You Do To Be Financially Stable Within 15 Years?

Everyone wants financial stability in their life and for this; one has to plan wisely to secure their future. Financial stability means living your life on your own terms and it definitely will take some time. Just imagine, a time when you can take care of your bills and regular expenses without any stress, and afford to live the lifestyle you’ve dreamed of.

 While there are many ways to attain a financially stable life, here we are listing three effective ways that you can consider for achieving financial stability within 15 years:

 1. Term Insurance:

 One of the best ways to be tension free in the matter of money is to have a ‘term insurance’. It is a type of life insurance policy where we can get money coverage for a certain time limit or a specific ‘term’ of years. Also if the insured person dies during the active period of this specific policy, then a death benefit will be paid to the family of that insured person.

 Also, a term insurance is comparatively less expensive than a permanent life insurance, as a term insurance has no cash value unlike the most type of permanent insurances. There are many term insurance policies available today and so you can select a better one, of your choice, from them.

 2. SIP (Systematic Investment Plan):

 If you are planning to invest and earn, then you can make SIP your first option. SIP or Systematic Investment Plan gives you an option to regularly invest a fixed sum into your desired mutual fund scheme. A fixed amount is deducted from your savings account every month and it is then invested in your chosen mutual fund. This investment plan also gives you the option of buying units without even worrying about the ups and downs in the market. SIP can bring in a financial discipline in your life along with giving you chance to plan your budgets and expenses in a better way.

 Now have a look into how SIP works? With the help of SIP, you can invest small amounts of money in fixed intervals of weekly, monthly, or quarterly, instead of investing a large sum at once. Your money is then invested in small-scale, midscale, or large scale companies and this helps in getting a great balance between risks and returns. Other benefits of SIP include Disciplined Savings, Long-Term Gains and Convenience.

 3. Health Insurance:

 What is the point of saving for a lifetime if not insured for your own health, right? So making your biggest wealth insured is very important indeed.

 Health insurance is a kind of an insurance coverage that covers the cost of an insured person’s medical and surgical expenses when in need. Sometimes according to the terms of the insurance coverage, the insured has to pay the costs by themselves which will be reimbursed to the insured person later.

 As medical costs are rising year by year, having a health insurance or taking one immediately will be the wisest thing to do. Health insurance offers considerable flexibility in terms of the disease or the ailment. Many health insurance plans cover almost to 30 critical illnesses and over 80 surgical procedures. There are two main types of health insurances: Private health insurance and public health insurance.

Having a health insurance will be the wisest decision that you can make in your life to have a good and secured life So, as now you know some of the best ways to plan for your bright stable future, go ahead and start investing or insuring yourself or your family by comparing and choosing the best plans in the industry.