Saving money requires a lot of sacrifices and making smart investing decisions. But before you begin to save, it helps to have a clearly established goal you wish to achieve with the savings. Whether it is to save for your child’s future, take an international vacation, purchase a house property or build a retirement corpus, goals can be many.
Financial experts say that ideally, you should have an emergency fund worth 3 to 6 months of your monthly expenses to take care of any unforeseen contingencies. Once you have a contingency fund to fall back on, you can start investing to prepare for other short-term and long-term financial goals.
Where to invest?
You can start by setting your priorities into three time frames – short term, medium-term and long-term goals. Let’s look at how you can plan for short-term goals. For short-term goals like buying a bike next year, you need an investment option which offers liquidity so you can withdraw the funds when you need them. At the same time, you must also be able to earn decent interest on your money while it is invested.
Calculate how much you need to invest. If the bike costs €3,000 and you want to purchase it by the end of the year, you would need to save approximately €250 per month, not including taxes and registration fees. Accordingly, arrive at the investment amount to earn savings of €250 per month at a projected fixed rate of interest.
Iban Wallet is a digital banking alternative investment platform that allows you to earn from the comfort of your home. It offers different investment products that you can choose to invest in and potentially earn daily interest. Depending on the product you choose, the projected interest rates vary from 2.5% AER to 6% AER. Since the interest rates are aimed to be fixed, you can calculate the savings you can earn based on the amount you plan to invest. This aids you in financial planning as well.
Besides, you can receive a real-time notification for the transactions you make on your Iban Wallet. Withdrawals from your Iban account are also highly convenient as you can request to withdraw your funds when you require them. The high liquidity works in its favour as other investment options such as bonds or fixed deposits may not be as liquid.
Often, people hesitate to invest thinking of the large lump sum needed to fetch good returns. However, Iban Wallet investment platform encourages even small investors and those who may not have sufficient savings to invest in its products and start building a corpus. With its low initial investment starting at $/€1, anyone can open an account on Iban’s global investment platform.
When it comes to the security and safety of your funds, Iban Wallet gives high priority to investor protection and risk mitigation. With its three-layer security policy, it does everything it can to ensure that your funds go nowhere and stay safe. In case a loan borrower defaults, your funds stay protected through asset-backed loans, a Buyback Guarantee and a Safeguard Trust.
You do not have to be a financial expert to invest and start saving. The key is to start small, but start wisely. Begin by ascertaining your income, your monthly expenses and the savings you are left with. From your savings, start investing in the long-term goals you wish to achieve. Keep monitoring your expenses and cut down on any unnecessary costs so you can save more at the end of the month and use it to invest. Lastly, remember to keep your investments in line with your salary hikes to reach your corpus amount sooner.