Don't just save, Invest - Know five significant modes to save, invest money this World Savings Day!

Pune, October 30: As we walk out of our childhood days and step up to turn mature enough handle money, our parents teach us, 'A penny saved is a penny earned'. While the phrase diligently highlights the importance of savings, growing up, our elders constantly tell us that we should spend less than we earn and save some portion for future use.

 

 

Savings being a path to success, World Savings Day celebrated today is very popular and the reason for this attractiveness is that many obstacles still remain to savings. Since the high rate of unemployment and poverty is still prevalent in many regions of the world, educating people on saving and influencing them to save money is very important.

 

The Day today world wide is observed in order to promote savings in common people. It is a global celebration particularly sustained by the responsible retail and savings banks, cultural organizations, sports bodies and skilled agencies. While the day reminds of the importance of regularly saving for having a protection net, here are 5 important and easy ways one can save a lot of sum for present and future: 

 

 

Systematic Investment Plan, commonly referred to as an SIP, allows you to invest regularly a fixed sum in your favoured mutual fund scheme. In SIP, a fixed amount is deducted from your savings account every month and directed towards the mutual fund you choose to invest in. With SIP, one is able to start investing in small amount and reap big returns. Allowing to grow the principle amount at less risk, SIP tracks investments, also brings financial discipline.

  

 

Being government securities denominated in grams of gold, Sovereign Gold Bonds are secure and safe, allowing to save a bomb for future. They are substitutes for holding physical gold where investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. These bonds offer superior alternative to holding gold in physical form.

 

The risks and costs of storage are eliminated and investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.

 

 

A fixed deposit is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account and involves absolutely zero risk by setting the amount aside for furture. It also is the most common way to save and secure the belongings monetarily.

 

 

'A penny saved is a penny earned'. While trying to save money through budgeting but still carrying a large debt burden, one can save a lot by spending less than what actually is earned. Once free from paying interest on your debt, money can easily be put into savings where a personal line of credit is just one option for consolidating debt to be better paid off.

  

 

If not interested in any of the above mentioned major methods, one can any ways and always adopt the traditional mode of saving money, being the piggy banks. Though being super safe, involving no risk of loss at all, this saving mode keeps the earned amount aside, untouched and withered but safe. The better part of it slating to break the bank when in urgent needs, this is still widely preferred pan India today.