Everyone here want to become a whale one day or the other. The whale dream is common among people who work really hard looking for better returns for their contributions. If you are someone with a full time job, it is always ideal to look for a good investment plan. We tend to spend what we usually earn and we don’t usually worry about the future. But it is always good to have some focus about your future as well. If you are creating a source for passive income today, it will really be very helpful when you become old and if you are incapable of doing some job to solve your basic needs.
That is where a Systematic Investment Plan plays a vital role. If your income is either monthly or weekly, you should take apart from your income and keep it for your investments or savings. I have discussed the importance of diversifying your portfolio in past articles. But before diversification, you will first need a Systematic Investment Plan. We should not be underestimating the power of compounding. The money that we push today into the savings will continuously compound and turn out to be a huge value in the future. Below is an awesome advertisement video that clearly explains the power of compounding.
Start an SIP
A systematic Investment plan can be with anything. You can either buy stocks or invest your money on mutual funds monthly. I’m not going to go into details of that now but after you decide what is going to be your SIP, you have to religiously stick to it. Then only you will be able to become a whale in the future with financial independence. SIP gives us the benefit of buying your stocks or mutual fund with a fixed amount. This is independent of the market rate because if the market is not performing good, you will end up buying less quantity and if the market is really doing very well, you will end up buying more quantity. The outcome of the SIP will be that you will be accumulating lots of shares gradually over a course of time.
With the help of SIP, you will also be able to mitigate the risk of larger investments. But at the same time, even for SIP, your choices should be wise. You can contact a financial advisor to start your SIP on the right stock or mutual fund. There are different types of SIPs on which you can invest. It can either be small cap, mid cap or large cap. Based on your potential, you can choose which one would choose you best. Over a course of period, you will be able to clearly see the outcome of your investment. Even if you are someone with a good capital investment, I would recommend you to start an SIP and have it in a seperate track to see a good return in future.
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