WHY YOU SHOULD START INVESTMENT IN APRIL

In the earlier article we had understood the difference between savings and investment and also the importance of financial goals in life.

Keeping all this in mind, it is important that you start investment in April

1.     Plan your year ahead: At the end of march/beginning of April, you have some sense of salary structure. This means you will know how much income you will earn. At same time, you will have an idea about major spends as well as tax liabilities. So start planning early and quickly.

2.     Spread out investments:If you spread out investments, it will not be a big pinch in to your pockets.  Avoid investing in big sum in a single transaction. Through SIP, you can invest in small bits every month.

3.     More time to invest: If you start investing in April, you will get more time to invest rather than when you start investing in mid-year.

4.     Understand with example: If you have to invest Rs 1,50,000 for the year, if you start investment from April, then you will invest Rs 12,500/ month. However, if you invest say from August, amount will increase to Rs 21K/month.

5.     No Pressure on Liquidity: Small amounts of investment every month does not affect liquidity. You can manage your regular monthly expenses without worrying on how much cash is left.

6.     Target becomes achievable:  If investment is started early, it is easy to achieve the target without much pressure on pockets.

7.     Better Prepared for emergencies: In a span on 12 month period, you can achieve your investment and still have more money in hand for regular savings and expenses. This can be handy in case of emergencies.

So if you have not started investing early, start before it is too late and make the best use of time.