In today’s fast paced times, building up one’s savings is tough, particularly at an early age where there are EMIs and bills to pay along with growing family and lifestyle expenses. There are many of us who manage to save only a paltry Rs.1,000 every month. However, this is not as small as you think! Even if you manage to save just Rs.1,000 each month without fail, you can actually put this to good use.
Here are 3 Smart Things that you can do with this amount-
- Contingency fund building- While it is always okay to have glorious dreams of the future, you should always build a contingency fund for taking care of emergencies and covering present financial situations. You should start out by putting your monthly savings of Rs.1,000 in a recurring deposit, debt mutual fund or other savings instrument. This money will always be a back-up fund that will take care of unforeseen expenditure and will grow faster than the money in your savings account. You can also invest in a Fixed Deposit for steady returns. Choose a financial institution offering high FD interest rates and check the interest rates on FDs being offered by various banks and NBFCs. One thing is for sure, the Fixed Deposit interest rates are anyway higher than savings bank deposit rates and this is a good way to grow your money. Use any bonuses or surplus funds to build up your contingency fund.
- Earning more financial freedom- Once you have accumulated a surplus fund of Rs.30,000 or so and assuming that you did not have funds to invest in an FD earlier, now is the time to do so. You can actually go a long way towards becoming rich by just smartly using your Rs.1,000 and compounding it over quite a few years. You should now look to invest smartly in Fixed Deposits or other lucrative instruments when you have accumulated a certain corpus.
- Future Readiness for your Profession- Success now comes only to professionals who are future-ready in terms of having evolved and upgraded their knowledge, skills and overall capabilities. Always keep yourself financially ready to upgrade your knowledge by taking new courses while working at the same time. This fund should be kept ready by you at all times and hence you should allocate a portion of your investment for the same.
As you can see, Rs.1,000, although small, can actually be deployed smartly towards eventually making you rich, professionally evolved and ready to take care of contingencies.