I once felt that How to start investing with ₹1000 something that only rich individuals could do. I assumed that one needed a lakh or more to make any kind of investment. For quite a while, I hesitated to begin, even when I had enough money from my job. An average amount of what I got would go into spending and the remaining small sum would be placed in a regular savings account.
The whole thing changed when I chose to invest only ₹1000.
The Turning Point
This happened during the pandemic. Just like other people, I worked remotely, had little time with friends and had extra hours on my hands. I stumbled on YouTube one day and caught a video about investing (How to start investing with ₹1000) only ₹500 in the stock market. I wondered if it was true, clicking on the link anyway. The film mentioned that it’s not the amount of money you have, but when you begin and how often you invest, that is important.
It surprised me that you can begin investing with a little money. That very night, I decided to invest ₹1000 and see if it would work out for me.
Step 1: Understanding the Basics
Before making any investment, I first educated myself about it. I got started by reading blogs, looking at videos and listening to podcasts. I was able to learn about:
With compound interest, your money can increase in value faster than you expect.
Generally, greater opportunities for gain can lead to greater risks.
Not making all your investments in the same sector prevents risk.
Inflation causes savings to shrink if the interest on your money is lower than the rate of inflation.
This short course in personal finance helped me realise that I could put my money to work, rather than always work to earn it.
Step 2: Choosing the Right Platform
I was searching for a platform that let me invest with ₹1000. I went with a mobile app that received good ratings and gave me the ability to buy mutual funds without fees and open a Demat with no charge for trading stocks.
I didn’t have any problems signing up. I needed to complete my KYC using my PAN, Aadhaar and a picture of myself. After only 24 hours, I had everything packed.
Step 3: Making My First Investment
Before investing in individual stocks, I chose mutal funds and started with SIP (Systematic Investment Plan) in an index fund. These type of funds make it simple for you to buy into the market as a whole by using low fees. Such funds need little intervention and generally remain stable over the years.
I invested ₹500 at once and then arranged for a monthly SIP of the same amount.
It did not seem like much, but it had a big impact for me. For the first time ever, my investment portfolio began growing as I saved money.
What I Learned from That First ₹1000
- Being organised matters more than having extra capital.
What matters more is the regularity of your investment than the amount you put in. If your investments have an annual return of 12%, the money could amount to well over ₹40,000.
This is what happens when you stick with it and let time work for you.
- When we invest, fear is removed.
I was worried that I would lose money before I began. Yet, after making my first purchase, I discovered that being afraid was mostly due to ignorance. Gaining knowledge made me feel less nervous. - Each rupee has the potential to grow.
We think ₹1000 is not a significant amount. We hastily decide to use that for dinner or a new outfit whenever it’s needed. You can earn much more than ₹1000 through investment, as it grows into ₹5000 or more with time.
I now see money in a different light. I began looking at the situation over a longer period.
- Becoming financially free takes time and effort.
Taking on little jobs at first gave me the confidence I needed. In the first six months, I raised my monthly SIP to ₹1500. I began reading up on stocks, investment funds known as ETFs and debt funds as well. I created a financial emergency fund and started checking my net worth. I went from just making money to creating wealth.
How It Changed My Actions Since
That investment managed to change the way I handle money.
- I cut down on my extra purchases. Before spending money, I find myself asking: Should I use it in a different way?
- I set up a budget each month. I usually save and invest my money before spending it.
- I regularly cheque on my investments. I keep an eye on the performance of my portfolio and adjust accordingly.
- I provide lessons to individuals. People close to me often come to me and ask what they should do before beginning to invest. The rule I follow is to begin with ₹1000. All you have to do is trust the process.
Tips for Anyone Looking to Start Investing with ₹1000
It’s sensible to start investing using either a Mutual Fund or an Index Fund.
They are not risky, offer a range of options and suit those new to the market.
Work with Sure and Reliable Platforms:
Select platforms endorsed by SEBI and that get positive feedback from others.
Enrol for Self-Investment Plans.
Automating your investments will ensure you never miss any payments.
Avoid FOMO:
Try not to base your decisions on trending information shared on social networks.
Be Patient:
It is a process that needs time to work. It takes time to build wealth and should not be done quickly.
Keep Learning:
Learn by reading, listening and questioning others. The greater your understanding, the better choices you will choose.
Conclusion
Investing that first ₹1000 changed both my finances and who I am as a person. Because of it, I learned to be disciplined, patient and appreciate plans for the future. I realised that it’s possible to start contributing with whatever you have. The most important thing is to start moving forward.
If you are considering reading this, please understand: It is the right place to start. Right now. Using what you have.
Time in the market matters more than timing the market.
The way you use your ₹1000 can contribute to your future success. You just need to take the first action.
