By Admin 
Financial Planning Tips: Topics like financial security and investment are not only for high earners, but it is a need of every person. Often people postpone investment thinking that their salary is low, hence saving or investing is not possible.
But the truth is that whether the income is low or high, preparation for the future should be started from today itself. Even if the income is limited, at least a small amount should be kept aside every month. This can become a big help in the long run. Only regular and disciplined investment gradually takes the form of a strong fund.
To start with, you can adopt the 50-30-20 rule of finance. Through this rule, you can easily start your investment journey by dividing your income into needs, desires and investment parts. Let us know about this rule…
What is 50-30-20 formula?
Even if your monthly income is Rs 10,000, you can manage your money better with proper planning. The 50-30-20 rule makes this task easier. Under this formula your salary is divided into three parts. 50 percent essential expenses, 30 percent personal needs and 20 percent investment. That means, out of the earning of Rs 10,000, Rs 5,000 can be spent on essential household expenses like rent, ration, electricity bill, other bills.
After this, 30 percent i.e. Rs 3,000 is kept for personal expenses like travelling, shopping, entertainment. The most important part is 20 percent, that is, Rs 2,000 should be set aside every month for investment.
However, the needs of every person are different, so this amount may vary slightly. But efforts should be made not to reduce it by considering Rs 2,000 as minimum investment. If you are able to cut down on expenses, then increasing the amount of investment can prove beneficial for your future.
Can take recourse to safe investment options
If the investment amount is small and you do not want to take much risk, then you can invest money in investment options like bank FD, post office scheme, PPF. Not only will your money be safe at these places, you can also get good returns.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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