Stagnant salaries and inflation make it important to become financially smart in your life. Saving alone is not enough, especially if you wish to build a decent fund for your retirement years. For ensuring that you don’t struggle financially in the uncertain future, you need to start planning today. Even with modest income, you can start investing and potentially achieve better returns over time. Finances require comprehensive knowledge about various subjects, but if you manage to master them gradually, you’ll be living worry-free in your golden years. 

Investment with as low as Rs 100 can make you financially stable, and we will tell you how. It's important to cultivate the habit of saving to ensure a steady source of income in the future, especially during retirement. 

Start investing early 

For people aiming for long-term investments, equity mutual funds offer a viable option. However, financial experts recommend starting these investments from the age of 30. If you’re younger and inexperienced, Systematic Investment Plan (SIP) can be a safer option for you. You can make SIP investments consistently until retirement age.

Long-term investments

By investing Rs 100 daily in mutual funds through SIP for 30 years, your initial investment of Rs 10 lakh 80 thousand can potentially grow. At an interest rate of approximately 15%, you could receive returns of up to Rs 2 crore over the 30-year period. The interest rates vary, and you can always consider investing in different avenues to diversify your investment portfolio. This simple yet effective strategy helps you build substantial funds. 

Step-up strategy

Implement a step-up strategy for your SIP. This requires increasing the SIP investment amount by 10 percent annually. As most working salaried people receive around a 9% increment in their salary each year, they can use this additional income towards increasing their investment amounts. Simply said, as your career grows and salaries increase, you can also increase the investment amounts for better returns.

Let's consider another scenario, if you are investing Rs 100 daily at the age of 25, then when you turn 30, your salary increases significantly, you can also start investing Rs 500 daily, ensuring better returns. It does not follow the 10 percent rule, but it will surely be more beneficial for better future.