Saving money matters for everyone, including homemakers. Even without reliable income sources, homemakers are advised to attempt to set aside whatever amount they can to build fiscal responsibility.
Without aggressive investment techniques, this may not yield a significant corpus. However, any savings can still be helpful for emergencies or unseen expenses or even personal desires. While homemakers usually tend to save money already, simply keeping cash erodes its purchasing power over time due to inflation.
In India, mutual fund investments start with as low as Rs 100. Many government schemes also have a low entry-barrier. Depending on the budget, if one can set aside small amounts for monthly investments, they can end up with a decent corpus.
Where To Start?
Before starting the investment journey, it is recommended to understand your monthly household income and fixed expenses. After this, one must decide on a certain amount that they want to set aside every month. Ideally, this amount should not impact the overall expenses and are meant to build a good fiscal habit.
Even Rs 100 to Rs 500 can be a good start. Conservative investors can start with opening a Recurring Deposit account in their nearest post offices. This government-backed savings scheme allows depositing a fixed, small amount of money every month. Currently, post offices provide a 6.7% interest on RDs, making them a wise investment choice for beginners.
Homemakers may also choose to invest their money in gold as it is considered a safe and traditional option. Historically, the precious metal is known to have provided around 10% annual returns. As a result, small investments in gold can offer great returns over time.
For more learned or investors with higher risk-appetite, mutual funds are another good option. Initially, one can start with large cap or arbitrage funds or those with debt components for more stability. As time progresses, investors may choose to rebalance their portfolio based on long-term goals and risk tolerance.
How Much To Invest?
Initially, even saving 5% of the total household budget can be a good start. If someone has a Rs 10,000 budget for household expenses, they may start with Rs 500. In the beginning, investors may feel that they have limited options given the contribution value.
Discipline matters more than size. Homemakers can add extra money from gifts, shagun, or selling old newspapers. These small contributions can gradually increase the savings pool, helping the investment journey.
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