Gone are the days when people had the perspective of saving only after repaying all their debts. With options like Equities and Mutual fund investment options available, not only will you increase your net worth, but also be able to prepay your liabilities the safest way.
If you are into a debt of a personal loan or a car loan, and have just started earning, you can opt the SIP route to prepay your loan and reduce your burden considerably. The only thing you need to keep in mind is to opt for a balanced mutual fund where you are not completely exposed to risk. A balanced mutual fund is what is advised to start investing in.
Start investing through the SIPs route and reap the benefits of a lesser burden on your finances in the near future. Try to invest in these funds as much as you can after factoring your living expenses. In case of an education loan repayment, you can start investing prior to the commencement of your EMI payments. Then after 6 months, you can invest the surplus of your income, whatever is left after setting aside an amount for your EMI payments and your monthly expenses.
As your fund amount grows to a considerable level, you can prepay your loan and reduce the burden on your funds step by step. But the mantra is to follow a strict SIP route and continue investing till the desired amount is reached. Also do keep a track of your investments and review their performance.