When you are young, investing and saving may feel unnecessary. You may not have responsibilities at this stage in your life and no pressures to pay any bills or look after a family. But, this is exactly when you should start saving for a stable and financially secure future. The reason is pretty simple – the longer you stay invested, the more time you give your funds to multiply and create a corpus.
This corpus can be used to achieve your short-term, medium-term or long-term financial goals. Say, if you wish to take an international trip next year, you can start saving for it by planning in advance. There are plenty of investment platforms that allow you to invest in products in return for fixed interest. They are a good place to slowly start building funds and creating a financial backup.
Alternative Investment Platforms
Iban Wallet is an investment platform that offers its investors with different investment products to invest in for exchange of interest. Depending on the product you choose, the interest can vary from projected 2.5% AER to 6% AER. The interest is paid daily and gets credited in your Iban wallet. Plus, you can receive notifications in real time for transactions you make on your Iban account. Withdrawal of your funds is convenient as well. You can request to withdraw your funds any time you wish, unlike other traditional forms of investment that have a waiting period of 2 to 5 days.
Since Iban offers a projected fixed interest rate, you can calculate the amount you must save every month to reach a corpus you have in mind. For example, you aim to save €500 in a year, you will need to save around €40 per month. At a projected fixed interest rate, you can then calculate how much to invest to aim to save €40 monthly.
At a young age, understandably, you may not have enough savings. Your only income could be the pocket expenses your parents provide you for daily expenditure. Or, if you are earning the starting salaries may be modest given it is your first job. It can be difficult to have much savings at the end of the month. However, Iban wallet has a solution for small investors as well. It allows you to start investing for as low as €1. Thus, instead of spending money on things you don’t need, you can cut down on unnecessary expenditure and invest small amounts wisely.
Investing with Iban does not require you to constantly monitor your investments like mutual funds or bonds. You can simply invest and let your money grow while focusing on your studies and building a career. Besides, if you were to invest in mutual funds, bonds or dividend-paying stocks they are all subject to market volatility and you may likely lose a portion of your funds if you don’t understand how the markets work.
However, the benefit of investing with Iban is the security it offers its investors. With its three-layer protection policy namely asset-backed loans, a Buyback Guarantee and a Safeguard Trust it doest everything it can to ensure that your funds stay safe at all times. In a rare case, if a borrower defaults your money is more than likely to stay secure
If you are just starting with financial planning or taking control of your finances, it makes sense to start by investing in safe options as per your risk tolerance level. Investment platforms such as Iban can be a high-value proposition to add in your portfolio as you work your way up in the investment world.