There is no right or wrong time for investment.
You just need to have the vision and money for investment, advises Somya Srivastava, director and CEO, Prayatna Microfinance.
Financial independence is the need of the hour, irrespective of gender.
Women, especially homemakers, feel empowered when they are financially independent.
It gives them the confidence to grow and live life on her own terms.
As it is rightly said, 'A woman's best protection is a little money of her own,' for homemakers, financial security becomes even more necessary because it ensures they will always have some money in an emergency.
While there are various investment options available in the market, these are some smart tips to help you grow your money faster:
1. Start early
If you think you will invest when the time is right then that is a myth. Because there is no right or wrong time for investment.
You just need to have the vision and money for investment.
Starting investing early gives an advantage of saving and growing your money exponentially.
2. Have an appetite for risk
The older you are, the less the investor's risk appetite. The younger you are, the more the investor's risk appetite.
So starting your investment early with more risk appetite will give the investor a better chance of growing the money.
3. Research before investing
There are ample investment plans and policies available in the financial market. However, not every scheme will be apt for you.
Do thorough research and study well about all the options available before you make an investment.
4. Never park all your money in one pool
If you put all your savings in one place, if the company or share drops or liquifies, then the whole money will be lost.
Always look for multiple options, funds and policies that give a good return on your investment.
5. Set aside an emergency fund
Always set aside some money for emergencies.
Most investment plans do not give instant returns.
Also taking money out of these funds and policies takes time.
So always park some money as an emergency fund for any sort of immediate needs and urgency.
Plan efficiently as to how much fund you want to save as an emergency fund.
6. Set a limit
Always decide beforehand how much of your savings you are willing to invest.
Investing in a hurry can only get negative returns.
Proper planning and research should be involved in deciding the percentage of funds to be invested.
7. Calculate the return on investment
Investments are done keeping in mind the return investor expects of that return. So at the right time, enough funds are the prerequisite of investment.
Calculate how much return you expect from your investment in x number of years.
8. Understand the terms and conditions
All policies, funds, shares, etc that you invest in comes with multiple terms and conditions.
These terms and conditions are usually ignored and further leads to shocks and losses.
So before signing any paper related to investing, read very carefully all the terms and conditions properly. This can save you from a lot of hassles.
9. Have a clear goal in mind
Before investing always be mindful of your goal. A goal is very important for any investment plan.
Keeping a goal in mind helps the homemaker make good decisions, save accordingly so she can put in the money from time to time and increase her return.
10. Go slow on new investments
The last thing but the most important thing that every investor should keep in mind is the speed.
Always invest slowly. Analyse returns and patterns before making any new investments.
By going slow an investor learns a lot of things about investing.