Unemployed? Here's How To Best Utilize Your Savings!

Have you lost your job and your possibilities for new employment are constrained due to a lack of available positions and thousands of applicants? Then it is the right time to stretch yourself and look for opportunities to make money through your savings.

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Initially, you might have some questions in your mind like: what can I do? How? Where? How much money can I make?  You can earn money through your daily savings- the more consistent, the better.

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There are daily savings apps available, where you can start saving and managing your money. Many options are available on these apps. These apps are best for someone who is looking for simple ways to make money.

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You can automate your daily savings with these apps. They can easily be accessed by a smartphone with some simple and easy features. 

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During the pandemic, when people lost their jobs and had no source to earn money, have survived pretty well with micro savings and investment apps. If you are unemployed and have no source of income right now, you should invest your money wisely for some returns. 

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Many people save their money in a bank account with a few investments. Though these investments earn interest, the returns are far insufficient to offset the effects of inflation in the long run. Most of the banks offer a return of 4% (sometimes, even less!) on savings accounts.

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So, don't let your money sit idle; make it work for you. It is crucial to keep an eye out for other better choices and investment opportunities.

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The automated savings apps can track every transaction that occurs in and out of your bank account, and can even periodically transfer money from checking to savings in amounts that are determined safe and secure with their algorithms. 

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Investing is a crucial component of wealth creation. It aids in reducing inflation, achieving financial objectives and stabilizing the financial future. You have the option to invest in a variety of things, including stocks, equities, mutual funds and fixed deposits.

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Investing is one of the best options to reach your financial goals and create a financial cushion for the future so that you can live a secure life. In contrast to other asset classes, there are some investment plans available on the market that are highly risky but have the potential to produce favorable long-term returns. 

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Choosing the best investment plan, however, could be a difficult task without proper financial literacy. But money-saving apps are the best options to grow your savings effectively without any risk of capital loss. Apart from these apps, a few financial strategies that can boost your savings are listed below:

Stocks

Stocks signify a portion of ownership in a business or other commodity. It is one of the finest ways for long-term investors to generate sizable profits. However, as these instruments are market-linked, there is always a chance of suffering a capital loss.

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Real estate

One of the fastest-growing industries in India, real estate has promising futures. One of the most effective investment alternatives in India is purchasing an apartment or a plot of land. Real estate is a low-risk investment that generates large profits over the long term because the property rate is expected to rise every six months.

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Fixed deposit

For risk-averse investors, a fixed deposit is the perfect investment option. A fixed deposit offers guaranteed returns on your money while being unaffected by market fluctuations. Even high-risk investors opt to stabilize their portfolios by investing in fixed deposits.

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REIT : Real Estate Investment Trusts

Companies that hold or finance income-producing real estate across a variety of property industries are known as Real Estate Investment Trusts (REITs). To be eligible to become REITs, these real estate firms must fulfil several standards. Most REITs trade on significant stock exchanges, providing investors with several advantages.

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Cryptocurrencies

It is a type of money that exists virtually or digitally, it uses encryption to safeguard transactions. Cryptocurrencies employ a decentralized mechanism to track transactions and create new units rather than a central authority to issue or regulate them.

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Mutual Funds

Mutual funds are investments run by fund managers that combine investor capital and make investments in the stocks and bonds of various firms to generate returns. Even when starting with a lesser initial payment, you can still generate sizable profits.

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Public Provident Fund

PPF is a reputable investment strategy. The principal invested, maturity amount and interest received are all tax-exempted, and investments can be made starting at Rs. 500 each year. It has a 15-year lock-in term, with a few exemptions where partial withdrawals are permitted.

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NPS : National Pension Scheme

The NPS is a profitable government-backed investment option that offers pension alternatives. Bonds, government securities, equities and other investment alternatives are purchased with your money and the scheme doesn't mature until the investor is 60 years old. The length of the lock-in period depends on their age.

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Gold bonds

Sovereign Gold Bonds are issued by the RBI in place of the purchase of physical gold. Instead of owning physical gold, the Reserve Bank issues the bond on behalf of the Government of India. Investors must pay the issue price in cash, and at maturity, bonds may be redeemed in cash.

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Where to Invest Your Money

You can invest your money either in market-linked instruments or those that are unaffected by market changes, depending on your risk and tolerance. Market-linked investments offer higher returns, but because they carry a risk of capital loss, they aren't always the best investment strategies.

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In contrast, investment instruments like fixed deposits provide a greater variety of funds.

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Money-saving apps are the best option to save money because they keep track of your spending and integrate your bank accounts to get a complete picture and analyse your spending patterns and offer helpful advice on how to save more money and where to make cuts. 

Conclusion

This blog post contains information about money-saving and growing apps, digital gold investment apps, and some other investment options to grow your money from your savings. 

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