If you’re taking baby steps into the world of investing and have been wondering if micro- investing is enough – we’ve got answers!

First of all, let’s delve a little more into this term — micro-investing.
What is it? And how can it help you make money?

Micro-investing is exactly what you’d think it is – the investment of micro amounts of money at a time.
These small amounts accumulated over time can make a huge difference in growing your income, through a simple thing called compounding. The longer your money is invested, the more time your money has to compound. Seeing your money grow is a great incentive to continue investing as your income increases, right? 

How does it work?

Round-up investing is one of the easiest ways to start investing small. It works on the principle of automatically investing your rounded up spare change.

For example, say you took a cab to your friend’s place and paid the ₹195 for it online. Deciml rounds up this spent amount to the nearest 10 (or a multiple of 10, whichever you choose), which in this case is 200 and invests the spare change of ₹5 in a Mutual Fund on your behalf – automatically!

Basically, instead of leaving your spare change around in jacket pockets, the bottom of your bag or hidden in your sofa, you can put it into an investment account where it can actually grow and work for you (which we’re quite sure – it’s not going to be able to do from inside your sofa).

This approach of investing small amounts over a long time can end up being super profitable in the long run. Not only because you’re investing early, small and consistently – thus giving your money more time to compound and grow, but also because it’s automatic and easy – thus making sure that the subject of investments doesn’t end up worrying you or taking up too much mental space and you actually get time to focus on the things you truly like to do.

The bottom line is that micro-investing/round-up investing are really creative and helpful ways for you to start dipping your toes in the world of investing, and exploring your relationship with money.

But is it enough?

For now, yes. When you think of all the small and big expenses you make throughout the day, you realise how much rounded up spare change you end up investing in a month. An average user on Deciml right now is investing at least ₹1,859 per month simply through round-ups! Over and above that, Deciml also lets you set up daily investments of as little as ₹10 – for the days when you don’t spend at all.

However, for the future, especially if you’d like to retire without having to change your lifestyle, and travel more or spend your time simply relaxing, then it may be a little difficult for micro-investing to carry all the weight.

For that, a larger amount of investment of money, time, effort and research will be required.

And yes, we know. That’s not possible at this point in time. You are still exploring financial independence – paying bills, shopping for grocery and figuring out adulting.

But that’s no reason to panic, because you’ve still got time and technology (and Deciml!) on your side.

Rounding it up

Micro-investing is your biggest ally right now, when you’ve started thinking about needing to invest (that’s half the battle won!) but don’t know how to.

It enables you to start investing as per your budget and convenience; and makes you a little more confident with regards to your finances. Essentially, micro-investing helps you build the habit of investing and eases you into the investment ecosystem so that when the day to seriously start thinking about major future goals and invest aggressively comes – you’re prepared. Not only mentally, but monetarily too because the small spare change you started investing will have grown to a generous enough amount to be used or re-invested.

Start micro-investing!