How To Set Up A Weekend Investment Plan?
While most of us have heard about monthly, quarterly or yearly investment plans, there’s a growing breed of investors preferring to set up Weekend Investment Plan (WIP). Millennials have a heavy hand when it comes to splurging money. But now, with the growing inflation, they are directing an average amount they spend on the weekend towards an investment option by forgoing entertainment or leisure activities for a long-term purpose.
Thus, with the increase in the digital payment avenues, the money saved on the weekend can easily be invested with just the swipe of your fingertips. If you too are looking forward towards setting up this type of plan, this article can help you in this exercise. Let us begin...
Weekend Investment Plan: The Steps
· Figure out how much you spend each weekend
Prior to setting up a WIP, it is crucial to figure out the amount you spend every weekend. Your expenses may include – dining out, movies, a trip or any other luxuries. Once you have gauged the amount, analyze how much of it you can invest.
Let us consider your weekend expenditures as approximately Rs. 1,000 per week, then check if it is possible for you to invest this entire or partial amount. It may not be possible to invest the entire amount every week. There would be times when you might need to spend the whole amount or even more than that.
Don’t overdo while cutting down your expenses. Make sure that you are comfortable with the amount that you are planning to invest.
· Club it with your existing investment
Figure out the amount which you can invest and then club it with your existing investments. Let us consider Rs. 500, which you can save and invest every week. Then the monthly amount is calculate to be Rs. 2,000. You can club this amount with your existing investment in mutual fund via systematic investing planning (SIP).
If you don’t have an existing mutual fund investment, you can set up a weekly SIP plan and invest Rs. 500 to build and accumulate wealth for your essential life goals. A weekly SIP of Rs. 500 in a mutual fund offering annualized returns of 8% for a period of 5 years can help you to garner a corpus of approximately Rs. 29 lakhs.
SIP will help you to build up the habit of investing regularly. Thus, a disciplined investor can witness their money grow with the added advantage of – Power of compounding.
- Advantages of WIP
- Start small without straining your finances
People refrain from investing if they have to invest a big amount. WIP will provide you with a platform of investing regularly with a minimal amount.
- Help you to cut down on unnecessary expenses
WIP will help you to cut down on your expenses wherever required. Like per say dining out just twice a month instead of 3-4 times. This practice will help you to save those few extra bucks which we don’t really think about while spending.
- Develop a better lifestyle
Few healthy changes in your lifestyle will help you to create massive impact towards your wealth management journey.
In Conclusion
As evident, it’s easy to set up a WIP. All you need is some willpower in curbing the need for instant gratification. Once you get started and continue investing, with time, you will be well and truly on your path to fulfilling all life goals with utmost ease.
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(Disclaimer: The details and investment tips expressed by the expert in the article are his personal views. We advise you all to check with your certified financial advisors before taking any investment decisions. Investments in securities market are subject to market risks, read all the related documents carefully before investing.)