Investment Tips: Investment is important! Invest 20% of your salary, keep an emergency fund ready too..
While making a household budget, we try to save as much as possible. However, there are some expenses which cannot be ignored. Yes, we are talking about dynamic expenses i.e. fixed expenses (like rent, EMI, grocery, transport, etc.). These expenses are there anyway, but we can leave some expenses like gym membership, etc. in a situation of shortage.
If we plan the budget properly, it helps us achieve financial goals. In such a situation, the question arises how should we plan the budget to achieve financial goals? If we want to invest, then how much part of the salary should we invest?
Let us try to understand the answers to these questions.
Invest 20 percent of your income.
How much should you invest? This question is in every person's mind. According to financial advisors, investors should invest at least 20 percent of their income. If you invest 20% of your monthly salary, then after about 25 years a huge fund will be accumulated.
For example, if your monthly salary is Rs 50,000, then 20% of it i.e. Rs 10,000 will have to be invested. This means that on an annual basis, you will invest about Rs 1,20,000. After 25 years of continuous investment, you will be able to accumulate a fund of Rs 1.2 crore.
Investing makes us self-reliant. With this, we can stand on our feet and not depend on anyone. It gives us confidence and we can face any financial problem. Investing 20% of our salary is a very good decision. It secures our future, makes us financially strong, and helps us fulfill our dreams.
Make sure to create an emergency fund along with an investment
It is very important to create an emergency fund along with investment. It helps a lot in avoiding financial risk in an emergency. No emergency ever comes with any notice, in such a situation, an emergency fund helps a lot in relieving the stress of money.
Financial advisors also say that everyone should keep cash with them along with emergency funds which help in emergencies. Many times investors invest all their savings and face problems in an emergency.
Invest in children along with retirement.
There are many types of investment schemes available in the market to continue the income source after retirement. Along with retirement schemes, we should also invest for long-term goals like children's education and marriage. For this, the option of index fund and equity mutual fund will be right.
Apart from this, the NPS Vatsalya Scheme announced in the budget is also a better option and you can also invest in Sukanya Samriddhi Yojana.
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