Top 10 Ways to Invest Your Monthly Income for Achieving Financial Freedom

You always hope to live the brightest future. Nobody wishes to suffer from financial crises. It is the reason why you should be more particular about saving rather than spending it all for the moment. Truth is —saving on a monthly basis not only allows you to spend a life full of financial-freedom but also ensures you are stress-free. So start investing now!

Here we have created a list that includes top 10 ways to invest your monthly earning

1. Post office monthly income account scheme

This scheme carries zero risk to the investors and always promises a steady income. You will get paid monthly at the interest rate of 7.8%. Though this scheme matured after five years but it can also be encashed after one year of deposit.

2. Bank fix deposit

This option is best for people who don’t want to risk and always prefer being on the safer side. Readily, most of the Indians run after it. This scheme is provided by PSU and private banks. You can fix and deposit the amount for a specific duration (the period varies from seven days to ten years) and earn regular income in the form of interest.

3. Long-term government bond

It is known to be the safest bet with minimal risk. Usually, the interest paid on a half-yearly and annual basis. Good thing is you can sell them at any time and you can lock-in your money for a long period. The tenure varies from 10-20 years.

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4. Senior citizen savings scheme

This scheme is known to be total risk-free. People above the age of sixty can apply for the scheme, which is usually provided by Indian post offices. The interest rate is paid on a quarterly basis; at the rate of 8.6%.

5. Annuity

Annuity plans are mostly offered by insurance companies. This system provides a regular income stream with less risk. It can be regarded as the best retirement strategy. The interest is offered on a monthly/quarterly/annual basis. The total annuity depends upon the duration of your payment period. Annuity plans are classified into two forms:

  • Deferred (the money get invested by the tenure you chose)
  • Immediate (you start receiving payments from the beginning months itself immediately).

6. Mutual fund monthly income plan

For higher returns, MIP is best. It is a highly recommended alternative after fixed deposits. This requires you to take moderate risk. The ideal tenure for MIPs is between 2-3 years. It is also known as a debt-oriented scheme.

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7. PPF (Public provident fund)

Right after fixed deposit, customers are also coming towards PPF. The tenure period for PPF is fifteen years. It is regarded as the safest investment ever! Interest rate of PPF is reviewed every quarter by the government.

8. Gold

Investing in gold (in the form of jewellery) is safe and cost-effective. As many banks sell gold nowadays, it is a good option to buy gold in the form of paper gold. Nowadays, one can also invest via gold mutual funds.

9. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is instructed for senior citizens aged 60 years and above. PMVVY provides an assured return of 7.4% per anum. The scheme offers a minimum pension amount of Rs 1,000 per month and maximum Rs 9,250 per month. The tenure is 10 years. The maximum amount that can be invested in this scheme is 15 lakh.

10 Real estate

This saving plan requires moderate risk for the reason that real estate is highly liquid. Investment in real estate can offer returns in two ways:

  • Capital appreciation
  • Rentals

No matter how extravagant you are, it is highly recommended to invest a little portion of monthly earnings for the future— it is for a better, secure and happy lifestyle.

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