Are you starting your first job and looking to achieve financial sustainability? Well, investing your savings helps in building long-term wealth. Most of the people starting their jobs are not sure about where to invest the extra money.
You can invest in various financial instruments, policies, etc. that will help you in the long run. A job implies the smooth flow of income but it can also be used to build long-term wealth. The future is full of uncertainties and gaining financial stability at a young age can help cope up with the challenges ahead.
You may have fewer liabilities if you are starting your first job. Besides salary, getting a job also enrols you in the league where you can get an online loan instantly. The money/savings should be invested wisely to create wealth. Read on to know the top 5 ways to invest your money while being a job fresher.
The sooner you start investing, the bigger are the returns. You can invest your money in various risk-free financial policies like recurring deposits, fixed deposits, Public Provident Fund (PPF), etc. These policies provide handsome returns in the long run.
If you are willing to take financial risks, then you can also invest in mutual funds for bigger returns. One can take the advice of a financial expert/analyst before investing in mutual funds. It is better to invest in mutual funds if you have a prerequisite about it.
These financial policies have various plans to choose from and you can build long-term wealth by just investing a small portion of your salary. Choose a plan with payable instalments according to your financial situation.
You can also invest in an investment policy like life insurance, health insurance, etc. It can help you in preparing for any mishaps in the future.
Stocks & Shares
You can buy stocks or shares of any particular company that will give you a stake in the company. You can later sell this share when the company value goes higher and earn handsome returns. You can invest a small amount of money in stocks and can get overnight handsome returns.
The market fluctuations are unpredictable so it is advised to invest in stocks wisely. One may think about how can a small amount of money buy a stake in a company. Well, you can pool your money with other investors to buy a stake. Many companies offer their stocks at low prices too, it just requires acting at the right time.
Shareholders also get dividends from time to time. The profit that a company makes is distributed proportionally among the shareholders. One can also consult an investment banker who can invest your money in the stock market on your behalf.
Gold has been a prized possession for a long time in society. Possessing gold not only fulfils the luxury needs, but it also is a financial instrument that can provide handsome returns. Gold prices keep fluctuating but there is a greater chance of prices rising.
Investing in gold will help you in reserving a pool of cash that can be used for returns or in case of emergencies. You can collect your savings for a few months and can start by buying a small amount of gold.
Gold from foreign can also be brought and can be sold via foreign exchange trade. This activity is fully legal but you have to monitor the foreign exchange rates and follow the respective regulations.
One should make sure that before investing your money in financial instruments, you should be debt-free. The savings should be foremostly used for clearing debts. If required, you can take a debt consolidation loan to merge all your consumer loans into one consolidate them. Stash fin is a reliable source that can provide you with a debt consolidation loan on easy terms.
You may get your hands on various antique collectables that are being sold cheaply. Buying collectables, antiques, etc. will not bring you immediate income but can assure you handsome returns. You just have to buy the right collectable as what may be termed as cryptic today can become trending the next year.
Many people invest in various historical items, old wines, etc., and become rich by selling them, However, it is advised that you need to be an expert in investing in collectable or take someone’s advice. It may be possible that the antiques will be decorating your house forever.
Keep an eye on the online marketplace if you are interested in buying collectable. Many people tend to sell an antique possession cheaply online due to emergency financial requirements. You can also refer to a museum or an auction house if you have an antique item/collectable.
Keeping your money in your cupboard or under the mattress will not help you in building sustainable wealth. Putting your savings in the bank is the simplest and easiest way to invest your money if you have just begun your job.
You can deposit the extra money in a savings account for risk-free returns over a longer period. You can also fix it for 4-5 years for returns at higher interest rates but you won’t be able to access the allocated money.
Keeping cash with you over a long period will not increase its value although decrease it. Thanks to inflation, money loses value over time. Putting your money in the right financial institution that offers returns at higher interest rates is a better option.
In A Nutshell
Investing at an early age or just when you have started your job is a healthy financial practice. Investing based on another person’s taste will not always help you in getting immediate returns. You should rather analyse your savings and invest accordingly via available resources.
You can also invest in tax saving plans to save taxes. While saving taxes may not be the top priority of a job fresher, but investing in appropriate plans can help you in saving a huge amount of tax over time.
Invest your money at the right time when it matters the most. A little knowledge about the current market situation along with analysing forecast reports can help in investing wisely. Start investing your savings wisely!
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.