It is not for nothing that we have been advised to live a measured life. Bingeing/splurging will only take you so far. Before we get deeper into life’s philosophies, let us quickly make our point. Systematic Investment Plans (SIPs), are steady measured ways of investing and growing wealth. It helps with inculcating a healthy investment habit and at times, are actually preferred over lumpsum due to its convenience.
Unless you win a lottery or inherit an insane amount of wealth, you pretty much know the kind of money you will have at the end of the month. This money either gets spent (read splurged) or put into savings instruments. Let’s stop you right there.
This money could work even better for you if you choose to invest it. The benefits of investing through SIPs are plenty but most importantly, they help you grow your wealth in the long-term, with discipline.
Now, some individuals are of the opinion that investing a lumpsum amount may yield better returns instead of putting in smaller amounts over a long period of time. It might too but there are a lot of determining factors, most of which are beyond an individual’s control.