How to Eat an Elephant one bite at a time.. (How to make a crore by saving just Rs.2000/- A Month)

Systematic Investment Plan

The first step in the Investment Planning Process is identifying one’s financial goals… i.e., knowing how much money we will need, and when. However, many of us often go about saving and investing, but without actually knowing how we are going to use it. As a result, we end up either saving more than what we should, or less than what we need to… and often, it’s the latter. Moreover, as we do not know our return requirement, we end up making the wrong investment choice, settling for either safe investments that yield lower-than-required returns, or invest in high return potential avenues, taking on a higher risk which may not be necessary.
Once you have identified your financial goals, chose the investment avenues that can help you generate the required rate of return and drawn up the suitable asset allocation, all you need to do is make a regular savings plan and stick to it in a disciplined manner. This is where a systematic investment plan can help you.

Some useful thoughts… … …
1) No amount of planning is enough, unless you implement it in a disciplined manner (that is what SIP does)
2) "I do not have enough money to invest" is one of the common issues which many of us have – No problem. With SIP you can start investing with small amounts, as low as Rs.500/-
3) "I know I should invest regularly. But I am busy and hence forget" is again a common complaint. With SIP, you don’t have to remember
4) Growth of a monthly saving of Rs.2000/- over a period of 30 years would be Rs. 1 Crore approximately. This is the power of investing

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