Rs. 4000 probably looks like a small amount these days. You may spend it on shopping, dinner or a weekend getaway. But you know what? This amount of Rs 4000 can actually contribute towards growing your wealth enormously. It’s exactly the right amount to make a smart investment.
Here are a few things that you can do with a saving of Rs. 4000 that will make you a smart investor.
- Protect the future against contingencies
This is a thumb rule: before you plan for the future, ensure that you secure it! Start first by opting for a comprehensive term plan that can protect your family’s future in your absence and also secure you against critical illnesses. This will give you peace of mind that your dependents won’t have to worry about financial challenges in your absence.
- Take the first step towards growing your wealth
A systematic investment plan will ensure that you maintain discipline when it comes to investments. The key formula to grow your wealth is not to invest a huge stash of money in one go but to invest small amounts regularly for a longer duration.
While Rs 4000 may seem a small amount, trust us it isn’t! If you invest Rs 4000 in equity large-cap funds for the next 20 years you will generate a wealth of Rs 61.96 lacs*. Unbelievable! Isn’t it? Calculate how your small investments compound and grow into a large sum here.
It’s hard to think long-term when you are younger but it’s the right time to reward yourself with a smart investment.
So, the next time you splurge on luxuries, shopping or weekend getaways remember that this amount of Rs 4000 can actually help you achieve your future financial goals without any hassles. While enjoying life to the fullest is necessary, planning for your future goals is also important. Ensure that you maintain a balance between your monthly investments and spends.