In this fast-paced world, everyone is looking to make a quick buck. If you like to take your time with your money, here are some slow and steady ways to help you win the financial race.
Most of you have probably heard the saying ‘slow and steady wins the race’. And just like the tortoise that bested the hare in that famous race, you too can get ahead in life if you take the time to make the right financial decisions and investments.
Sure, in this day and age, everyone is looking to make as much money as possible in as short a time as possible. While it may work for some, there are many who fall by the wayside in search of that instant pot of gold that will sort them out financially in the blink of an eye.
However, patience is a virtue, especially when it comes to investing and managing your money. Most people in their twenties tend to live from paycheck to paycheck without giving too much thought about planning or saving for their future. But remember, life is a marathon, not a sprint. Thinking long-term will certainly hold you in better stead as you grow older and you find yourself swamped with more and more responsibilities.
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So, if you’re ready to take your time and watch your money grow over a substantial period, then here are some tried and tested ways that will help your finances go the distance.
Here’s a great investment avenue for anyone who likes to play it safe and sound. The PPF is a long-term investment scheme that offers attractive interest rates and risk-free returns that are completely exempt from tax.
A Public Provident Fund account has a lock-in period of 15 years, and through the magic of compounding, you can see your investment grow significantly. At present, the rate of interest stands at 7.6% and you can make a maximum contribution of Rs. 1.5 lakhs per financial year.
Although you PPF account will reach maturity after 15 years, you can choose to extend the account’s tenure as many times as you wish for a minimum of 5 years each time. This savings scheme works great for people who have just started working since it has proven to be an effective way to plan for life after retirement.
After all, who wouldn’t want to hang up their boots with a whopping sum of tax-free money coming their way after years of hard work?
Additional Reading: All You Need To Know About PPF Withdrawals, Loans And Pre-Closures
Opening a Recurring Deposit is great for anyone who is wet behind the ears when it comes to saving money. In fact, a Recurring Deposit is an extremely simple and convenient way to not just save money, but to secure your financial future one step at a time.
A Recurring Deposit is a kind of Term Deposit into which you have to deposit a fixed amount of money every month. It offers better interest rates than a regular Savings Account, so instead of letting your money lie idle, you can see it grow considerably over an extended period of time.
All you need to do is commit to diverting a certain portion of your monthly income into an RD and you’re good to go. Before you know it, you’ll find that you’ve built up your savings without even realising it.
Additional Reading: Top 5 Recurring Deposit Accounts For 2018
Ah! The granddaddy of them all. Fixed Deposits are arguably the most loved long-term savings schemes amongst the Indian population. Generations of Indians have turned to Fixed Deposits to build a corpus that will not just tide them over during their post retirement years, but to safeguard the financial future of their children as well.
FDs are considered to be the safest investment avenue, which gives account holders guaranteed returns once their account has matured. FDs offer much higher interest rates than regular Savings Accounts and come with tenures that go up to 10 years.
Due to this, FDs are hugely popular among long-term investors. In fact, they come in handy during a cash crunch as well since you can choose to take out a loan against your FD instead of opting for a Personal Loan. A loan against an FD comes with a lower rate of interest compared to a Personal Loan.
Additional Reading: Fixed Deposit Interest Rates Offered By Different Banks
So, there you have it. Some excellent ways to help you run the financial race without losing steam along the way. While the temptation may be to blow all your money in pursuit of instant gratification, it would be wise of you to keep one eye on your financial future so that you aren’t left scrounging for funds during your twilight years.
If you’re looking for some more excellent investment schemes and financial products you’ve come to the right place. Everything you need is just a click away!