How to Fulfill Your Dreams with Just Rs 1000

By BankBazaar | June 24, 2015

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When Dhoom 3 and Chennai Express released in Delhi, their tickets cost 900 Rupees, and a lot of people readily spent the money.

We easily spend way over 1000 bucks over a weekend and it seems like a small amount. But the same thousand could make you rich and solve your worries. Here’s all that you can do with a meagre drop of 1000 bucks. 

Start an SIP in a mutual fund: Money has the benefit of compounding, which a drop of water doesn’t have. To illustrate this, let us consider you had invested in a monthly SIP of Rs 1,000 in Franklin Templeton Bluechip Fund for 20-years. The tenure of the investment ended on 1 June 2015.  Your total investment of Rs 2.4 lakh would grow into Rs 36.12 lakh in 20 years.

Even if we consider that the fund performances are few and far between (the fund delivered 23% return during the period), your money would have grown into Rs 15 lakh at a rate of 15%  return.

Buy a term plan: If you are younger than 35 and can spare a 1,000 every month for a year, you can buy a term insurance plan with one-crore as cover. An insurance policy in your portfolio is a must-have to take care of your family and kids.

Premium for Rs 1 crore cover for a healthy non-smoker in the 30-35 yrs age group

Insurance plan Premium
Edelweiss Tokio MyLife+ Rs 9,051
Bharti AXA eProtect Rs 9,150
Reliance Life Online Term Rs 9,460
Aegon Religare iTerm Rs 10,260
IndiaFirst Life Anytime Plan Rs 11,286

 

Buy a health/car insurance: Having a health insurance policy is the first step towards ideal financial planning. This is to ensure that a medical exigency doesn’t wipe out your savings. How much would a health insurance with a Rs 5 lakh cover cost?

A family floater scheme for a 30-year healthy man would cost anywhere between Rs 8,500 and Rs 12,500 a year. An individual plan would cost even less. You can save Rs 1,000 every month to get a health insurance policy that covers you and your family.

A similar amount every month would be enough to buy car insurance for a mid-sized sedan.

Accumulate down payment for a new house: Yes, even that is possible; given you can save Rs 1,000 every week from your discretionary expenses. Just put that sum in a mutual fund SIP every month. With just Rs 4,000 a month, for 8-10 years, you can save enough money to make your initial payments for booking a flat. Even at a 12% return, you can create a corpus of around Rs 10 lakh. If you want a bigger sum, you should probably add a couple of thousands more to the monthly SIP and see the results for yourself.

Get your health check-up done: This is something that you should get done at least once a year. Again, all you need is Rs 1,000 a month to get a comprehensive health check-up done. Some hospitals and pathology labs could offer much cheaper rates. A Friday night out with your friends would probably cost you the same amount or more.

Get your credit history checked: Along with the health of your body, it is also necessary to make sure your credit history is healthy as well. Credit History continues to assume greater significance for getting a loan of any kind. A credit report costs you Rs 500, and therefore, you can check your credit score twice a year by paying a fee of just Rs 1,000.

Even if you do watch a Shahrukh Khan or Aamir Khan movie for a 1000 Rupees, maybe foregoing the expensive popcorn is not such a bad idea. We said maybe.

 

YOU MAY ALSO WANT TO: Find out exactly how much that 1000 rupee investment will get you – SIP Calculator

 

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3 thoughts on “How to Fulfill Your Dreams with Just Rs 1000

    1. Team BankBazaar

      Hi Siraj,

      You can check your eligibility for a Personal Loan here.

      Cheers,
      Team BankBazaar

      Reply
  1. Team BankBazaar

    Hi Siraj,
    We hope we’ve answered your query.

    Cheers,
    Team BankBazaar

    Reply

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