Fresh Out of College? Check Out Ways to Make Saving Easier
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School teaches you math, but not savings. The struggle is real. More and more people with exemplary educational backgrounds are fumbling and stumbling when it comes to personal finances. After years of spending money in school or college, savings can be an overwhelming responsibility. But the right tools to invest, starting simple and starting early can make a world of difference to help you stay prepared for the future.
If you too are wondering how to get started, we have you covered. The following investment options are some of the easiest ways to start off your savings journey:
Following are the investment options you can look out for:
Fixed deposits are one of the greatest ways of saving money. You can invest in a Fixed Deposit for durations ranging between 1 week to 10 years. FDs are not affected by the market fluctuation and at the end of the tenure, not only do you get the money that you had invested but also the interest with it.
Fixed Deposit interest rates remain constant throughout the investment tenure and hence help you earn more returns than you would normally get on a savings account. At the end of the tenure, you can also re-invest the money.
Mutual Funds are offer more returns as compared to Fixed Deposits. Mutual Funds pool together money from different investors and invest in stocks, bonds, market accounts & more, thus effectively helping you earn better returns. This diversity in investment options and the chance to create a varied portfolio is why investing in Mutual Funds can be Fun.
Digital gold is a more convenient option than conventional gold since it reduces the stress of physically owning and safe keeping the gold in a locker. Digital gold investment more often than not has no upper cap & the minimum purchase amount is as low as Rs.100. You can convert the 24K Digital Gold to physical gold and get it delivered to your doorstep. You can purchase Digital Gold in the form of coins or ingots.
Public Provident Fund (PPF)
Public provident fund or PPF is backed by the government, therefore making it a safe investment choice. Further, this low-risk investment avenue offers significant tax benefits. A lock-in period of 15 years makes PPF a great option for reaping the benefits of your savings in the long run.
Recurring Deposits
In Recurring Deposit a fixed amount gets collected in the account. RD is an ideal option for those who do not want to invest in a risky portfolio. It is best suited for people with fixed income. Plus, you choose the tenure of investment as per your goals and once your RD matures, you will receive the maturity amount. You may be charged a penalty in case of a premature withdrawal.
The Bottom Line
Saving at an early age is necessary so that you may fulfil your dreams in future. This also helps you save on income tax right from the get-go. Savings also prepare you for unexpected expenses.
