Being finance ministers of our homes, we have a habit of saving from our monthly budgets. How tiny may be the amount but it seems nothing less than a trophy for us and why not, after all we have worked so hard throughout the month to save each penny. Momeys, now it’s time to make our monies do some hard work for us. Don’t let your cash sit idle in your cupboards or put into kitty parties (BTW that’s not saving or investing). Kitty parties are for having fun, not for putting your monthly savings! So here’s a list of options to add little spice to your plain monthly savings:
Savings account – your savings can earn around 3-6% pa interest. It’s a little better than keeping your cash idle at home but only a little
Recurring Deposit – If you are regular saver, then you could open an RD account with your bank.
Fixed Deposit – if you already have a lumpsum amount saved with you and you would not require it in short term (say 6 months – 1year), then you can open a fixed deposit with that amount.
Mutual Funds – Sounds complex but pretty simple to invest & manage. If you wish to keep your money for say 3-6 months, you can invest in liquid/ultra short term debt funds. And if you don’t need that money for 5 years or more, then you can invest in Balanced/Large cap funds (being a first time investor). You can invest your already saved lump sum money or a small amount every month in mutual funds as per your convenience.
So momeys take charge of your savings and make them work for you!!