Begin investing, for a change!

As youngster you may have just started to earn with no major responsibility. The thought of saving or investing never crosses your mind. This decsion is usually made when your salary increases.

If you are also a victim of this confusion, and don’t understand how to start investing, here are some tips. Start investing the change money.

There are many new age fintech companies, which do this work for you. These remind you that NOW is the time to invest. Appreciate, Jar and Niyo are some of these fintech companies. Change investing is related to these fintech companies, which is a new trend currently. Change investing is based on Micro Investing. You can invest by adding small amount.  This is what we usually call Change Money.

So investment made with change money is change investing. You can make this investment in digital gold, mutual funds and other investment instruments. Fintech companies like Appreciate, Jar and Niyo monitor your spending… and whenever you buy something, like shoes or clothes or spend on eating out. These apps alert you to invest small amounts in assets.

Now let us tell you how these fintech companies help in change investing.

For change investing, you have to either open a savings account on the app or link your bank account to the app.

These apps fix an amount which can be called roundoff amount. For example, a purchase of Rs 499 results in a round off amount of Rs 500. Similarly, a purchase of Rs 680 results in a round off amount of Rs 700.

For this round off amount, the change money i.e. 1, 10, 20 or 30 rupees is used. Change investing is done by collecting them at one place.

Now whenever you spend money on any purchase using your debit card or net banking account, the change money will be debited from your savings account. Once the total change money collected reaches 100, Rs 500 or Rs 1,000, then the app asks you to invest it in any financial asset available on its platform.

This way, you can save some money every month and invest that money.

However, before choosing change investing, it is important to keep some things in mind as this has some limitations.

You cannot add big capital through this kind of investment. One more important thing. At present only a few companies provide the facility of change investing.

Because of this, the services available to the customers are also limited.