GOT A RAISE IN SALARY? HERE IS HOW YOU CAN INCREASE YOUR SIP

May 20, 2020
0 comments
Donny Raw
Posted in Finance
0

The feeling of getting promoted is undoubtedly exhilarating. You have worked hard with determination and grit and finally, reward shows up at your door. You have probably already drawn plans to spend this extra money. For those of you with an added bit of money in your kitty post the appraisal season, it is the perfect time to accelerate your investments as well.

Financial experts preach that a hike or a raise is the perfect time to start small additions to your Systematic Investment Plan (SIP) that would reward you with massive returns in the future. Increasing your SIP investment would help you to reach your goals faster without any hurdles. Following are a few pointers to help you understand where you should invest and why:

Already have a SIP running? Time to put things in the next gear

Extra cash in hand is the perfect opportunity to expand your goals and dreams further. If earlier you were saving for your child’s higher education or maybe their Big day, by increasing your investments, you can now start planning and saving for that long due vacation that you deserve.

Increase in income equates to a call for bigger goals

As you start to earn more, it calls for the added temptation to spend more, whether you need it or not. Don’t worry. It’s not just you; It is human nature to desire more when we have the means. Another wonderful thing about getting an appraisal is that you can plan on having a brand new financial goal or a new target to meet. Use the extra cash to augment your new goals on top of the existing ones. This will aid you to ensure that you can set new benchmarks and attain them without burning a hole in your pocket.

Are you wondering if inflation can hamper your investments?

A lot of people wonder if they would be left with enough money to invest in mutual funds as extra expenses also accompany a hike. And we have to factor in the concept of inflation as well. The good news is there is always enough money to invest even with the rise in the general price well. Furthermore, increasing your SIP not only keeps you from overspending but also ensures that you have sufficient saved for your future.

Investing smartly indeed pays off. Budget your expenses and invest smartly. You can also use an SIP calculator to better gauge how much money you need to keep aside each month to achieve your goals. Mutual funds are a great way to achieve your financial goals. And SIP allows you to invest in part relieving you of stress to arrange all your investments at once. Always keep a habit of linking your mutual fund investments with your financial and personal goals. Also, consider your risk profile and investment tenure as well. Happy investing!