Investing is essential to achieve your goals. It is the only way to make your future better.
Dreaming of buying a car in the next 2 years or a house in the next 5 years? Wanting to have your dream wedding or starting that side hustle? Dreaming of your business or your retirement?
We often ask ourselves when it would be the best time to start investing. Should we wait for that increment or often think, “baad mein dekh lenge.” Well, the best time to start investing is NOW! (Yes, right NOW!). Investing early can make an enormous difference in your financial journey.
This blog will guide you on how to turn your dreams into reality!
Let us take a look at an example:
The ultimate goal is to not how much you invest but how smartly you invest. In the example above, Sonam started investing with just Rs. 500/- a month and ended up with a corpus of Rs. 35.04 lacs compared to Ridhi, who began investing at the age of 45 with Rs. 3000/- a month. Ridhi ended up with a corpus of Rs. 8.35 lacs.
Here are 5 things you should start investing for:
1. Compounding – Time plays a critical role in investing your money! It is not how much you save and invest but for how long you invest. The secret is the ‘power of compounding.’ Compounding can turn a small sum of money into comfortable nests. Hence, it is essential to start investing early, even if you start with a low amount. You can start investing with as low as Rs.100/- in LXME Rs 100/- Debt and Equity Plan.
2. Security – It is essential to save for ‘rainy days.’ This sum of money is a safety net which is helpful during any unplanned expenses or unforeseen circumstances. It could be home/car repairs, medical emergencies or job layoffs. It creates financial security for yourself as well as your family in situations. Generally, an Emergency fund should have 6-8 months’ worth of expenses. However, it is always beneficial to keep more. Instead of letting the money sit in your savings bank account, it is better to invest it.
3. Retirement – Do you dream of early retirement and living comfortably with complete financial freedom? Your dreams will turn into reality if you start working for them! Check out LXME’s Retirement Calculator to understand how much corpus you need when you retire!
4. Child Education – Education costs have gone bizarre! Instead of just building castles in the air, it is time to start planning and investing in your child’s education. Start planning early so you don’t have to worry about it when the time comes. It will help you plan your finances accordingly. Check out LXME’s Child Education Calculator and Portfolio.
5. Goals – Now think about the other goals you are saving for! Do you want to travel the world, buy your own home, buy that designer bag or set up a business? To fulfil your goals, you will have to understand how much money you need for each of them and when you want to achieve them! By using the LXME’s Goal Calculator, you will be able to know how much you need to invest!
other blogs
Smart Lifestyle Smart Money March 16, 2023
Improving your relationship with money
Money is an integral aspect of our lives, but many struggle to maintain a healthy relationship with it. Whether it’s overspending, debt, or simply feeling like there’s never enough, a person’s relationship with money can cause stress and anxiety. However, there are ways to improve your relationship with money and create a more positive financial […]
Smart Lifestyle Smart Money March 15, 2023
Why is Term Insurance important for Women?
Do you also think Term Insurance is not essential for women? Then, let’s break this myth and understand why life insurance is important for women. As per LXME’s Women and Money Power Report 2022, 58% of women have no insurance (life or health) in their name😨. Shocking right? Let’s bridge this huge gap together!! Why […]
Smart Career Smart Money March 11, 2023
Simple Money-Making Ideas for Stay-At-Home Parents
Being a stay-at-home mom/dad, your work is technically never done. It’s not an easy job and certainly not lucrative because warm hugs and your child’s cute drawing won’t pay the bills. But thankfully with the advent of technology and possibly the only silver lining of a pandemic, work-from-home jobs are more common than ever. Here […]