Financial security and investing aren't just for high-earners; they're a necessity for everyone. To get started with investing, you can adopt the 50-30-20 financial rule....

Big savings possible even with small income

Financial Planning Tips: Financial security and investment aren't just for high-earners; they're a necessity for everyone. People often put off investing, thinking that their salary is low, making saving or investing impossible.

But the truth is, whether your income is high or low, you should start preparing for the future today. Even if your income is limited, you should definitely set aside a small amount each month. This can be a significant support in the long run. Only regular and disciplined investing can gradually build a strong fund.

To get started, you can adopt the 50-30-20 financial rule. This rule helps you easily begin your investment journey by dividing your income into needs, wants, and investments. Let's learn more about this rule...

What is the 50-30-20 formula?

Even if your monthly income is ₹10,000, you can still manage your money effectively with proper planning. The 50-30-20 rule makes this easier. Under this formula, your salary is divided into three parts: 50 percent for essential expenses, 30 percent for personal needs, and 20 percent for investments. This means that out of an income of ₹10,000, ₹5,000 can be spent on essential household expenses like rent, groceries, electricity bills, and other bills.

After this, 30 percent, or Rs 3,000, is set aside for personal expenses such as travel, shopping, and entertainment. The most important portion is 20 percent, or Rs 2,000, set aside each month for investments.

Although each person's needs are different, this amount may vary slightly. However, you should aim to invest no less than Rs 2,000, considering it the minimum amount. If you can cut back on expenses, increasing your investment amount could prove beneficial for your future.

You can take recourse to safe investment options

If your investment amount is small and you don't want to take too much risk, you can invest in investment options like bank FDs, post office schemes, and PPF. These investments will not only keep your money safe but also provide good returns.