How To Grow Money

How To Grow Money?

Start investing early

You should do more than just earn money by working in an organization or starting a business if you want to shoot at becoming affluent. No, it might sound complicated, and you do not have that kind of time, but trust us, it is not as tough as it sounds. It would be best if you had a primary idea about a few essential things. If you learn to manage your funds efficiently and conquer the art of how to grow money, you are one mark closer to being more prosperous and wealthier.

Almost everyone reading this wants to know how to grow money and hence, one should learn about some of the investing ways that will help you in growing your money and funds.

First things first, you must start saving and investing early in your life. Most of us think that it is just our first or second job and we do not need to invest money, it can be done later in life. However, the reality is that the earlier you start your process of investment, the better it will be for your future prospects.

Say no to unnecessary debt

Do not fall under the trap of debts, utilize the money you earn in a systematic manner that you do not fall under the circumstances of paying your debts. Mostly when we are under debts through any medium, we require to pay interest on the debited amount that is nothing but unnecessary expense that can be looked past in the longer run see how to maximize savings in the longer run. Say no to impulsive buying.

Don't put all your eggs in one basket: Diversify your portfolio

Diversification supports you with narrowing the danger as well as it also maximizes the returns from the portfolio. If you put all the eggs in one basket, chances are that some of them might break off hence, keeping them separately in division will help them stay intact for longer. The same situation is with your investment plans as well, keep your choices diversified for best returns.

1. Recurring deposits (RD) and Fixed deposits (FD)

Everyone finding an answer to the question' how to save money' - frequently ask whether investing in a Recurring Deposit (RD) is a safer option than a Fixed Deposit (FD). The answer to  it is that while FDs and RDs are a few of the most dependable forms of investment available in the Indian banking market. RDs are a type of 'term deposit', so people with regular earnings can save a fixed sum each month and earn interest at the same interest rate offered on FDs. On the other hand, FDs rely on you to make a lump-sum payment.

2. Mutual funds

While spending in mutual funds is flashed to market risks, you must evaluate the risks before participating. If you perceive the market and its risks, mutual funds can turn into your best investment alternatives to grow money in India. You can choose monthly SIPs if you want to fall under the low-risk slab. If you are investing in mutual funds, it shows you how to grow money and manage your finances better.

3. High interest rate savings account

One of the basic and most traditional way to grow your money is to save it. A high interest savings account can do wonders when you have just started your savings journey. As we know the saved amount in a savings bank account can earn interest, try to find a bank in which you get good rate of interest and start your savings journey from there.

4. Equities or stocks

Are you a risktaker? It is one of the riskiest investment forms, so you need to know the share market thoroughly. The one fundamental rule that all the investors in the market follow is to continually invest for the long term so that the advantages of the investment can shine out. Playing the markets for prompt returns is not an ideal strategy that must be followed in the share or stock market, so be aware of the amount of vulnerability you allow yourself. However, if you want to maximize your savings it is a great solution.

5. Invest smartly

Be smart with your investments. Analyzing and knowing your savings plans for the future will assist you in the best way when it comes to looking for investment portfolios. Understand your need and then opt for the options mentioned above. RD, NPS, PPF, FD, Mutual Funds, savings bank account, and shares are some of the key options that you can chose from. However, the most important factor is to understand your needs and requirements in the future before investing.

6. Change your investments as your priority changes

Change is the only constant, and we do believe this is true for fund investments as well. Prioritizing your needs and requirements must be kept apex when looking for investment options. Sailing in the same boat will take you to a particular spot but to roam in different places and collect memories you will have to change the ship as and when necessary. Similarly, changing your investment plan is also necessary to earn maximum amount of profits and grow your money.

7. Be consistent in your investment

Being consistent in a process is always a good practice. Moreover, even investment procedure requires us to be consistent in our approach so as to save and maximize our money. Especially in portfolios like mutual funds and share market being consistent and patient leads to good amount of interests in general.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein