When a habit is cultivated to save, we initially save in a piggy bank, then think to deposit in a bank. So that, our money will be safe. We felt the gladness that the money saved will be a help in future. The next step comes when we think to grow our savings too. Question arise in our mind is it necessary to grow our savings? What do you mean by growing the savings? How to grow our savings?

We all know the saved money is to be used in future. The necessity could arise may be after 6 months or after 6 years, we never know. So the saving should be done in such a manner so that it can beat the effect of inflation. For example, If a thing you purchase today is of 100 INR after 6 years that thing may cost you 120 INR so the purchasing power of your money gets decreased with the increase in inflation. It’s not the scenario globally, there are countries where you have to pay banks, to safeguard your money. Every country’s economy works according to their financial policies. So what I want to convey is that choose that particular instrument to save your money so that it also fetch you some good return to beat inflation. Saving is that amount which we save from our income and investment is surplus amount which we are willing to invest to make profit out of it.

In order to appropriately grow your money it’s important to know all the aspect of a saving scheme or fund. If you want more liquidity then saving account is an option or you can deposit in liquid fund also. But you have enough money in savings then opt for mutual fund. There are many mutual funds which are available in market, you have to choose one according to your needs. You can start your investment from as less as 500 INR.

I like mutual fund investment than investment in shares as its very time consuming and stressful to invest in shares as compared to mutual funds. Go for mutual funds and grow your savings so as to meet your future requirements. There are people who still trust traditional instuments like fixed deposit for safety of their money but it’s not recommended at all.

You can also buy gold coins or gold bonds which ever you like as it will also fetch you returns and it can also be used to take loans. The jewellery which we buy always has an emotional value attached to it and we get carried away by it. So, don’t consider gold jewellery as investment moreover it also has high making charges which make it less valuable as compared to gold coins. For investing your savings in gold always go for gold coins or gold bonds. So that when you sell it, your heart don’t break or you don’t think that this gold was given to me on so and so occassion by special person and has emotions attached to it, which is in case of gold jewellery.

Be wise to choose for your future. As you control stearing of your life.

Ramneet Kaur