How can I grow my money fast?

financial planning, investment options, types of investment, lumpsum investment, sip investment, where to invest money, importance of investing, Mutual funds

Today, everyone – be it a man or a woman desires to be financially independent. It is the onus of an individual to be able to provide for themselves and their dependents. While, traditionally, this task often fell upon the male authority of the family, today, women have come up and taking equal efforts to provide for their family. Being financially independent also gives the much-needed confidence that one would be able to handle things on their own if things go haywire. This article provides four tips for women who are looking to kick-start their financial journey. Read on to know more.

  1. Gain financial literacy
    A journey of a thousand miles might seem too much, but it begins with a single step. So, to be financially independent, you need to take the first step of being literate about financial instrument. Read and learn about as many different types of investment as you can. You can find various wealth management communities, courses, apps, and personal finance workshops both online and offline without paying any penny.
  2. Start small, but early
    There are several low-risk investment options that an investor can begin their investment journey with. Examples include recurring deposits (RD), bank fixed deposits (FD), Public Provident Fund (PPF), etc. A lot of risk-investment options such as FDs and PPF offer a tax deduction of up to Rs 1.5 lac to investors under Section 80C of the Income Tax Act, 1961. However, bear in mind that the lower the risk exposure, lower is the probability of the fund to earn significant returns. So, if you have a high risk exposure, consider allotting at least a part of your portfolio to equities and equity-related securities.
  3. Make sure to insure your life and health                                                                                                                    If you have closed ones who are financially dependent, getting a life insurance is utmost important. The premium paid towards these insurance policies will make sure that your closed ones are looked after when you are not around to provide for them. Also, get a health insurance plan in place to cover the costly medical bills. Hence, both life insurance and health insurance policies are required to ensure financial security in your life. What’s more, these insurance policies also offer tax benefits.
  1. Give time for your investments to grow
    It is quite essential that you tailor-made your investment portfolio every now and then and ensure that it suits your financial objectives, risk profile, and investment horizon. Financial jargons such as mutual funds, Systematic Investment Plans (SIP), equities, etc. might seem intimidating at first, but it’s just a matter of time, knowledge, and skills that you’ll get quite comfortable around these tools. There’s another tool called mutual funds return calculator that helps an investor to understand the future value of their mutual fund investments. Use it to carefully plan your investments.

The necessity of managing one’s own finances and life, especially for women cannot be stressed enough. Even though you start small, but make sure you do start. Happy investing!

By sandeep

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