By Sudhir Singh

First job, first salary and many thing to do. It happens with every one after college days. A small amount in hand hardly to survive. So what about savings? Nothing! But mind it, your savings are actually your salary. At the end of the year or two or five what you are having in your account will lead you to your dreams. So if you are earning no matters how less start saving now on wards because there is never late for savings and investment. First plan your financial goal and then achieve it. This may be of 2, 5, 7 or 10 years. Its up to your patience and dreams which will set your years of goal. If you simply save your money in your saving account, at the end you will be in loss because of rate of inflation. Inflation rate is fluctuating from decades between 5 to 7% annually. Normally bank gives 4% interest on saving account. So value of your money will reduce and you will be in loss of 2-3% annually. That’s why not only save but invest smartly. So that you earn money and your money earns for you.

We are advising you some very small but fruitful investment tips. You may choose each product or whatever suits you. It depends upon your own situation.

R.D. (Recurring Deposit): It is a very traditional form of investment in which you can invest a definite amount every month. It can be small as much as Rs. 500 but try to have it at least a thousand. Banks are providing 7 to 8.5% rate of interest and post offices are giving 9 percent interest rate. RD investment will deduct from your saving account and you don’t have to bother to rush banks but in post offices you have to go for deposit. If you invest a thousand every month after 5 years you will have a handsome amount of nearly 70 thousand.

SIP (Systematic Investment Plan): This investment plan actually for the mutual fund and its return depends upon market but we assume on past experiences that it will give lump sum of 12% rate of interest. Small investment of 1000 will lead you to a handsome wealth. It depends on duration of time how long you carry it. In between you can withdraw some of your balance in your SIP account and rest will carry forward. You can have many Sip’s you want but always invest in different funds.

PPF (Public Provident Fund): Open a PPF account in bank or post office as soon as your EPF or GPF opens. Anyone can open it with minimum of 500 and maximum of 1,50000. It will give you compound interest and also there is no tax on any level. Even it saves taxes too. This investment is at least for 15 years and every year you may deposit your savings for 6 times maximum. Every government employee already have a GPF i.e. (Government Provident Fund) and private firm’s employee have EPF (Employee Provident Fund). Along With this provident fund you must have a PPF too as it was started for every citizen of the nation and because of its compounding power you will generate a very high amount after 15 years. Generally youth opens it with a goal to have an own home.

One more thing you must remind that you should have another saving account along with your salary account. Whatever salary you are getting should transfer to your saving account as you don’t get any interest on your salary account so if you have another saving account you will get some interest too as on saving account. It is usually 4 to 6 percent rate of interest.

                These are very small tips by which you can have better financial future but start it as soon as possible. In our first job generally we avoid savings. It is because of handful of salary, lack of awareness and our laziness is the cause behind it. And my friends you will see after 5 years of your job you will feel free a lot as having enough amount in your hand to achieve your goal. Once you have a habit to save and invest, it will increase day by day as with the growth of your salary and savings. As we all know a better future comes from a better planning.

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