5 Ways to Make Investments Out of Your Stipends

Posted on May 5, 2012 in Specials

By Madhav Gupta:

Ram: – Hey! I earned 15K from 2 months of internship and I’ll buy that Samsung S2 (mobile).
Sham: – Haha! I earned 20K and I am going to buy PS3!
Hari: – You guys are fools! I earned just 13k last summer and I invested them. Now my money has doubled; plus I earned 20k this summer. I am going to buy a new bike guys!

Now most of us are like Ram and Sham, and spend all our summer earnings on some small goals. Whereas Haris are very few, who have patience and investment sense when it comes to their earnings.

Although, Hari did save money and invested it wisely, most of us don’t have much knowledge on how to invest or save. Here are 5 simple ways on achieving the same:

1. Give it your Mom: Yes give it your Mother (Mothers are easier to convince than fathers!), So if you have earned 20k, give 12k to her as a saving and make a deal, after 6 months you give me 15K. Most probably she’ll say yes! Money saved is money earned.

2. Buy gold or silver: Buying gold and silver is a really easy way to start investing, because this is what we can wear also and the rates of these items keep on increasing. Where girls can buy chains and flaunt them, boy on the other side can go for silver or gold coins, which are much cheaper and have good resale value. You can even buy Gold ETF (equity trading fund) which start in the denomination of 500.

3. Try investing in Stock Market: This is one of the best ways to get into hardcore world of investing. I too started from here. I made 12K from just 4K, in about 7 months. But you need to do a proper study on it or consult some experienced person who invests in stock market. Here stakes are high but then profits are good as well.

4. Do a onetime investment: If you really want to spend your earning, spend them wisely like buy a cycle, may be an off-road one, which is easily available for 7-8K and looks better than most of the mid-range motor-cycles. The best part it saves your money as you can cut down on petrol and then there is also no need to join a gym.

5. Invest in Bank or Post Office Fixed Deposit: One can easily put in their money in an FD; especially those offered by post offices all across India, the rate of interest provided is 8.2% for one year and gradually increases in subsequent years. Money here is highly safe and the best is that you can deposit as low as a mere Rs. 200.

All in all guys, I will repeat, Money saved is money earned. We spend hours to earn money and in matter of seconds we can spend. So, go spend it wisely.