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A Step-by-Step Guide to Creating a Successful Micro Investment Plan

Why is it that it’s easier to convince someone to save money than to invest it?

We pondered over this question a bit and came to the conclusion that a number of factors contribute to people having a savings plan, but lacking a where to invest money to get good returns.

Firstly, saving is viewed as an internal action – no third party needs to be involved if you are simply saving money by setting it aside from your income. Investing, however, requires getting an external party to handle your money in some capacity – this makes people nervous.

Secondly, and more importantly, there is also hesitancy in creating a where should i invest my money because of just not knowing where to start.

So we thought we’d step in and help you understand how you can use micro investing to successfully implement a money investment plan. Why micro investing? Well, because it is the perfect investment option for those looking to regularly invest small amounts rather than making lump sum investments sporadically.

These tips will particularly be helpful for you if you are a first-time investor, if this is your first time making a best option to invest money, or even if you simply want to find out options that allow you to invest small amounts routinely. So, here’s how you can create a micro investment plan that can help kickstart your money investment plan –

Step 1: Define Your Goals – Just like any other solid plan, a money investment plan cannot be successful unless you have a clear objective in mind about what you want to achieve through your investments. Ideally, a money investment plan should have clearly defined goals across a certain time period – and you work backward from there.

For example – Your goal is to plan a trip to Goa in 6 months’ time, and you need ₹10,000 more to meet your expenses for this trip. You now know how much you need to invest, and how much time you have – this helps you figure out how much you need to regularly invest to reach that number.

Using the Daily Deposit feature of apps like Deciml and micro investing ₹100 each day will allow you to accumulate ₹10,000 in a little over 3 months! Your goals will guide your money investment plan and the decisions you make about your investments.

Step 2: Determine Your Investment Budget – Micro investing requires investors to regularly invest small amounts of money – the keyword being regularly!

To that end, when you are doing Step 1 in this list, you will know how much money you want to invest in a day. Your money investment plan should have a clearly demarcated investing budget for a year, month, week, or day.

For example – If you want to invest ₹30,000 in 12 months through micro investing. This is a big amount and seems scary. You don’t like it, and we don’t either. But let’s see what happens when we break it down. ₹30,000 a year means you are looking to invest ₹2,500 per month. So you are looking at investing roughly ₹84 per day.

Doesn’t that seem so much more manageable than ₹30,000? This is one of the miracles of micro investing. As long as you know how much you want to put toward your money investment plan, there will be a way to invest through affordable daily installments (Um… Did someone mention Deciml Daily Deposits app?)

Step 3: Choose Your App – This seems to be one of the more important decisions most Gen Z investors have to make today – which app are you going to choose for your money investment plan?

There are a number of micro investment platforms in India today – and they’re all typically offering investors a variety of investment options, are easy to use, are affordable, and are also good sources of useful information.

For Example – The Deciml App comes fully equipped with Wise Up (insights into the world of finance, fintech, and investing), Sprint (the investment trajectory dial), and Round-Up Investing (the option to invest spare change from every digital transaction).

How does this work? Let’s say you have set a round-up limit of ₹10 on Deciml. This means that when you spend ₹247 on a coffee, ₹3 will get invested automatically for you! So every time you are spending any money digitally, Deciml makes sure you are also investing while you’re at it!

Step 4: Automate It! – Most micro investing platforms allow investors to set up automatic investments. This means that once you’ve done the initial setup of your investment app, the investments will automatically be made from your account on a daily, weekly, or monthly basis – as permitted by you.

Setting up auto-pay for your money investment plan allows two things to happen. One – it makes investing easier. You don’t have to manually repeat any transactions toward your investment, instead, your auto-pay mandate on any selected platform will take care of it. Two – this ensures that you are contributing to your money investment plan regularly; this helps instill routine into your investing habits.

For Example – If you decide to micro-invest using Deciml, you only need to decide how much your investment limit is per day – and the app does the rest for you through automated investments.

There is no hassle of going through endless paperwork or needing a lot of back and forth between investors and middlemen (aggregators, advisors, etc.); it requires minimal effort on the part of the investor and gets them ready to execute their carefully charted money investment plan.

Step 5: Monitor Your Investments – We said before that automated micro-investing removes the effort required in investing daily (weekly, monthly, or yearly!). But out of sight does not mean out of mind in this case.

Your money investment plan is only useful if you are regularly checking your progress, re-allocating funds if necessary, and are making plans to diversify with more robust investment options. Regularly monitoring your money investment plan (and by proxy your micro-investing habits), you are giving yourself the foresight and freedom to make financial decisions that will be safer for you and ultimately will yield the maximum returns for your financial future.

For Example – Apps like Kuvera have a Risk Profiling feature that can help monitor your investment patterns. Deciml has Sprint, its investment trajectory dial, and FundsIndia has Alert SIPs, Smart Solutions, and Portfolio SIPs – all to help investors track their investments, know what’s new, and measure their potential growth and returns as well.

If you are seriously creating a money investment plan, then you have to determine the parameters that will help you monitor your investments.

These 5 steps can have a lasting impact on your financial future if they are efficiently covered while creating a money investment plan for yourself. The important thing to remember while creating an investment plan that leverages the advantages of micro investing is that the key to benefiting from micro investing lies in compounding – and the benefits of compounding are unlocked by disciplined investment practices.

These steps need to be tailored to meet your individual needs, fit your individual budget, and fuel your individual goals.

What are some other important tips and tricks for investment planning that have been helpful for you when you first started out? Tell us in the comments below!

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