The Collector’s Edition

Recently we had an oh-so-formal birthday party invite of an year old. Well it was a fun party but a bit formal since it was husband’s boss’. Once the wives were introduced to each other and left to chat up, the gentlemen promptly made way to the bar.

I met a fellow momey who had taken a break from flying to look after her then 2 year old son’s growing needs. Now comes the interesting part – she is now working as a freelance educator for Cuemath. It started with her trying to explore new learning channels for her son, but soon they approached her to become an educator herself.

With ‘screen time’ becoming a major pet-peeve for all parents these days, engaging in alternate education methods made a lot of sense. After I came home and pondered more about it, I started to think, what were the things that kept us occupied in our childhood when screen options were practically zilch.

I recalled how ‘collecting’ was big with us. It was engaging and informative both. Collection of currency, postage stamps, books, doll sets, scrap book memorabilia and what not.

They say coin collecting is part all – art, science and history. You don’t have to aim to become a Numismatist. That may require in-depth academic knowledge of currency. Collection can be done purely as a Hobby. There’s always the advantage of knowing about the country where your collection of coin or paper currency comes from. Matching currencies with countries used to be a regular question in my GK test papers J Knowing coin’s worth in home currency, ease of getting it, can help unearth the value and joy in collecting. There’s a fair bit of history hidden as one takes note of year of making of the coins, symbols inscribed in designs, metals used, thereby telling about the era it represents.

There are ranking systems also used by pro collectors but its definitely advanced and not a pre-requisite to enjoy being a mere collector for hobby. It is also an interesting game between enthusiasts to trade your surplus coins. Trading adds to the collection and it can make you earn when higher value coin is traded for lower value.

There are moments of joys and jealousies as we form a little group of enthusiasts and compare our collections. If a friend managed to get a currency before it would be a big disappointment. But a dime more in our kitty and we would be on seventh heaven J

Those were good ole’ days. Even now I have a bit of interest in collecting coins which I am determined to pass on as a hobby to my lil one. So long as it keeps the screen at bay, it would be worth his while.

Back in the party, once our glasses arrived; the chit chat slowly gave way to some great music and food. I had a heck of a time myself.

Happy New year lovelies!

 

 

 

The power of small

Home economics is no stranger to ‘The power of small’. Yup momeys, I am referring to the small savings we manage every now & then.

We have all had situations where a little fortune out of our savings kept aside bailed us out of unforeseen situations. A medical emergency, unexpected wedding or birthday shopping, unplanned purchases for home or self, numerous ocassions can pop up when small sum plays a big role.

This post is to draw attention to a fast gaining investment feature called SIP – Systematic Investment Plan.

Understanding SIP

SIP or ‘the good EMI’ as it has been fondly called is a sure shot way to make your small savings grow. To give some background, SIP is a feature offered to MF investors. Mutual Fund is a collective pool of money in which various investors put their money for returns. This pool is managed by experts who in turn invest it further to fetch gains for their investors. Now to invest in a mutual, there are 2 ways – lumpsum which you can do one time and second is SIP.

SIP is any fixed amount (starting Rs. 500) that can be invested every month on a set date into a mutual fund scheme of your choice.

Why SIP

Now comes the real part. SIP is increasingly being used by investors because of 2 main reasons:

1. Flexibility to invest small sums over a period of time.

2. Great returns due to the power of compounding.

Compounding Advantage

An investment has to be given time to give worthwhile returns. And when you invest through SIP, you turn little sum into big money. As you invest month on month, your base increases – sum you are investing plus the returns keep getting added. This is how you benefit from compounding. To explain better, suppose you put Rs. 2000 every month in SIP for 10 years. The principal you have put is Rs. 2,40,000. With a modest rate of return of 12.5%, you will have Rs. 4,78,763 at the end of 10 years. You can use this calculator to find out more: https://www.mysiponline.com/sip-calculator.php

This supersedes any Recurring deposit returns you will make over long term. Mutual Funds are seeing unprecedented interest from new investors and SIP is becoming a favourite. But you don’t have to follow anyone for the heck of it. You can do an SIP for the sheer benefit it brings. Just resolve to make small savings into big as a first step and rest will fall in place. Start today!