The creation of wealth doesn’t need you to win a lottery or receive an inheritance. It can be achieved with discipline, patience, planning and lots of small financial contributions.
Regardless of how much you earn or save, there’s always more room for further saving, investing and insuring. In fact, you can insure yourself and invest for the future even on small budgets – even one as tiny as Rs. 2,000. These little drops may seem insignificant, but will eventually create an ocean of wealth for you someday.
Here are some smart money moves you can make with a single pink note, or on a slim budget of Rs. 2,000.
Buy Life Insurance
Yes, you can purchase a Life Insurance policy for as little as Rs. 2,000 (paid by cheque, of course). One of the most inexpensive covers you can buy is a term plan.
The illustration below is for a male person aged 30 years.
| Name of the plan | Coverage amount | Annual premium | Coverage features |
| MetLife Mera Term Plan | Rs.10 lakh | Rs.2,185 | Term cover for 10 years with premium discounts for non-smokers and women. |
Buy Cancer Insurance
With a budget of less than Rs. 2,000, you can also purchase various cancer care plans. As per the terms and conditions of the policy, these plans will pay out in the unfortunate event you happen to be diagnosed with cancer.
The illustration below is for a male person aged 30 years.
| Name of the plan | Coverage amount | Annual premium | Coverage features |
| Future Generali Cancer Protect
|
Rs.10 lakh | Rs.654 | Get full sum assured if diagnosed at a later stage. 25% at an early stage, and 75% in case of relapse. |
| HDFC Life Cancer Care – Silver
|
Rs.10 lakh | Rs.670 | Get full sum assured if diagnosed at a later stage. 25% at an early stage, and 75% in case of relapse. |
| HDFC Life Cancer Care – Gold
|
Rs.10 lakh | Rs.830 | Get full sum assured if diagnosed at a later stage. 25% at an early stage, and 75% in case of relapse. |
Buy Health Insurance
A Health Insurance cover is necessary due to the rising cost of hospitalisation and increased health risks due to sedentary lifestyles, poor diets and stressful lives. Fortunately, these policies can be bought on small budgets as well.
Here are two such insurers with premiums within Rs. 2,000 for a male person aged 30 years:
| Name of the plan | Coverage amount | Annual premium | Coverage features |
| Universal Sompo Complete Healthcare Insurance –Basic Plan | Rs.1 lakh | Rs.1,476 | No sub-limits on room rent, no co-payment, pre-existing waiting period of 3 years, coverage pre and post- hospitalisation expenses, etc. |
| National Insurance National Mediclaim Plan | Rs.1 lakh | Rs.1,772 | Coverage for pre and post- hospitalisation, ambulance costs, AYUSH treatments, organ donor expenses and free health check-ups. |
Invest In A Mutual Fund SIP
Investing in Mutual Funds has been greatly simplified by the availability of Systematic Investment Plans (SIPs). Through SIPs you can invest small amounts every month towards your preferred mutual fund scheme.
SIPs are easily affordable and also provide the benefit of rupee-cost averaging. The minimum amount required to start an SIP is Rs. 500 only. You could invest for four months with a budget of Rs. 2,000.
Get A Bank Deposit
Banks offer two distinct types of deposit schemes. One is a Recurring Deposit scheme wherein you are required to pay a fixed amount of money every month for a specified period of time. The other is a Fixed Deposit scheme wherein you make a lump sum investment for a fixed tenure.
Both these deposit schemes provide guaranteed returns. So, if you are averse to market risks, choose any of these deposits. You can invest with multiples of Rs. 100 or Rs. 1,000.
Choose A Small Saving Scheme
You can avail one of the many government-backed small saving schemes that provide fixed returns for long-term investments. These schemes require a small investment on your part and are risk-free.
Some popular small saving schemes are as follows:
| Name of the scheme | Minimum investment | Rate of interest |
| Post Office Monthly Income Scheme | Rs.1,500 | 7.70% p.a. |
| Public Provident Fund | Rs.500 | 7.90% p.a. |
| National Saving Certificate | Rs.100 | 7.90% p.a. |
| Senior Citizen Saving Scheme | Rs.1,000 | 8.40% p.a. |
So, there you have it. You can make plenty of smart money moves on a budget of just Rs. 2,000. The next time you’re struggling to spend that pink note or break it into change, think about these nifty investment and insurance ideas.