How to Invest Smartly with Your Salary?

You worked hard and earned money which is then to be utilized for your overall expenditure. However, reckless spending of the Salary may leave you without money, forcing you to ask for debts( small ones). Thus, a simple act of being more aware of how you use your money makes a big difference and helps you achieve your financial goals. Thus,  to help you start investing smartly, we have come up with this guide.

Why should you Invest?

Investments help you to save and create wealth with your hard-earned salary for the future. You can opt for both short-term and long-term investments. In fact, the powerful benefit of long-term investment techniques is the potential of compounding interest or growth earned. Customers must distribute investments among financial agencies, including stocks, bank deposits, mutual funds, and insurance. But you must study the market risks and invest wisely.

Investment alternatives to save from salary every month

You must invest your money for better returns depending on your financial goals. Here’s a list of a few investment alternatives to save money from your monthly Salary. 

Bank Fixed Deposit

Most people choose fixed deposit investments over mutual funds or stocks since it is one of the safest options. You deposit a sum of money in your bank for a specific period at an assented interest rate in a fixed deposit. 

[Learn about Sarbashrestha Fixed Deposit ]

EPF/PPF

Employment Provident Fund (EPF) and Public Provident Fund (PPF) are two forms of popular provident forms. EPF is automatically subtracted from the salary of the monthly salaries of the individuals by their employees and deposited into each person’s EPF account. A salaried employee and employers contribute approximately 12% to their EPF account. 

Mutual Funds

A mutual fund is a trust that gathers money from several individuals with similar investing goals and invests it in securities like equities. A mutual fund maintains low risk when done through SIPs and operated carefully. It gives you the advantage of investing in markets without positioning your money in too much trouble.

Recurring Deposit

 Recurring Deposit is another good investment as it is designed to save any amount over a period of time. To add more, Recurring Deposit is an advanced version of the fixed deposit as it allows you to save bit by bit and earn interest for the outstanding balance. So, Recurring Deposit is a safe investment option to save a regular amount.

5 tips for managing your salary wisely

• Budgeting helps you control your money and allows you to keep track of your expenses and create a budget plan. The 50-30-20 rule is also a splendid procedure you could use to budget your savings efficiently, spend 50% of your essential invoices, 30% on your financial pursuits and 20% on flexible spending.
• Pay attention to how much you spend, as the small amount of money will add up in your savings in the long run. It can be easy to keep spending on declining assets, gifts, and wants. But these costs ultimately add up to a much more significant sum than you would realize. 
• Instead of forcibly investing your money, read the risks and acquire a clear head for long-term goals.
• Even though credit cards and personal loans are assuredly available, refrain from taking them.
• Get rid of your debts because the ultimate killer of saving is debt, so clear the debt first. 

NIC ASIA Bank’s Saving Accounts to Smartly Invest your Salary 

While these steps alone cannot guarantee you complete financial management unless you invest in the best bank in Nepal. Coming to the best bank in Nepal, NIC ASIA BANK is the leading and most popular bank in Nepal. Why? NIC ASIA BANK offers the best interest rates for your investments and ever-fast digital banking services. In fact, NIC ASIA Bank’s savings accounts- Sarbashreshtha Ranges, provide you with options to wisely spend your savings salary.

To keep track of your savings and expenditure, you can download the NIC MOBANK App to relish the banking services at your fingertips.

Wrapping Up!!!

The fundamental step to start saving is with a savings account, and when you search for savings accounts in Nepal, you will see the name of NIC ASIA Bank on top. Savings not only help you in emergencies but also gives you the sense of wisely spending your funds. You can apply for a salary account in NIC ASIA Bank to get maximum benefits.

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