Best time for investment for you!
We dream about being successful and independent. Many of us have even saved successful wallpapers on phones, also motivational frames, and pictures sticking on the bedroom wall to look at before going to sleep. But, apart from that, we are also being told multiple times over to think realistic. The biggest lesson I took away from this as a kid was to always keep the imagination side of things very broad. It's so easy to have that imagination side of our mind wiped out by society's beliefs about what is possible. Even there are times when we get caught in the trap a few times, by thinking the goals we had envisioned ourselves achieving were too far-fetched. But the best thing we can do is to keep an open mind that one day if we work for it, the goals which are labeled as impossible will quickly become possible and one step further achievable and you know what investment has that power.
Now the question arises, why to invest and where to invest, well the answer for why is here, Investments did at an early stage of life reaps compounding benefits later on in life. Instead of spending money on buying unnecessary items, investing the same can help one to create generational wealth. Think about how you will live after retirement and why it is important to plan for it.
"An investment in knowledge pays the best interest "
- Benjamin Franklin
If you are a teen, the foremost investment that you can make is towards your education and learning, the knowledge you gain today will accompany you forever and help you attain your dreams smoothly. Now as far saving and investment is concerned and as if you are a student and of course not earning currently, so the simple suggestion for you will be to keep saving your money in a bank account every month. Though it is not a huge sum, always remember drops of water make an ocean. So if you keep saving 500 per month, you will save 6000 at the end of the year. So you can start taking baby steps and build a safety fund for yourself. Accordingly, the rate of interest for a bank account is around 4%, which will be a stepping stone to a bigger and safer investment. Once you achieve that and move to invest in a fixed deposit, you will get a higher interest of around 7%. Use your savings and start investing in different options like mutual funds, stock markets, etc. For the long term in India, there are investment plans, the Indian government, banks, and mutual funds have several small investing schemes. Some are given below:-
- Public Provided Fund(PPF)
- National Savings Certificate (NSC)
- Post Office Monthly Income Scheme (POMIS)
- Post Office Time Deposits (POTD)
- Systematic Investment Plans (Mutual Funds)
- Stock Market
We have to check our priorities and spend on our necessities rather than overspending on luxuries. Avoid credit purchases. Thus initially spend on gaining knowledge and experience and not on material things then after that go ahead and take the first step after saving money. Invest your money and yes, don't forget to make yourself financially aware, you don't have to become an expert or learn the skills of a financial advisor, it is just that you need to know the basics. So, at last, stop thinking and start investing:)
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