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Are you troubled with daily savings and cannot find solutions to your questions? Here are some of the answers to help you out with your savings.
You might have heard the saying, ‘Little drops of water make an ocean. It is equally applicable when saving money to secure your future. You might be surprised how saving a mere ₹10 every day for over 40 years can build you a substantial amount if you follow the principle of daily savings.
Daily savings is the easiest way to save money. It is a habit that you can ingrain into our lifestyle effortlessly. It is the secret tool to create wealth that often gets overlooked by most people.
This is majorly because of the mountain of bills that call for your attention every month, like utility, rent, food, broadband, and EMIs, among others.
But with just a bit of patience, you can easily develop the habit of setting aside the smallest amount of money you can afford without creating any strain on your monthly budget.
All you need to do is make an effort to remember to save daily. In the initial few days, it may seem a tedious task. But on the contrary, saving daily helps you achieve money you didn’t think you could save in the first place. Yet if you find it hard to remember to save daily, the Jar app can do the job for you.
Jar is India’s first daily savings platform that acts as your digital piggy bank, where ‘every penny spent is a penny earned.’ It rounds up the amount you spend on online transactions closest to 10 and keeps the spare change invested in digital gold.
Thus, you can earn a handsome ROI from the asset even by spending money on things you love. Not only is it secured, but it also offers an array of advantages to investors, from attractive interest on investments to ease of saving and anytime withdrawal facility, and many more.
Now, isn’t that an exciting way to begin your investment journey?
As custodians of the art of daily savings, it’s one thing we swear by that definitely works! However, if you have doubts about whether everyday savings is something for you, then look at all Q&As we’ve answered for most of our users.
We can’t wait to see you discover how daily savings is the right way to start putting your finances on track!
Q1. How much should I save daily?
While there is no restriction on the amount to be saved regularly, you can start with as low as ₹10. This is the nominal amount you can save. You can choose the amount you want to save daily without burning a hole in your pocket. But increase the amount gradually.
It is better to choose a value that you can deposit every day. In other words, we can say that you should deposit a nominal amount from the beginning to get into the habit of daily savings. Once you realize that you are left with more at the day end, increase your daily investment amount.
For example, if you invest INR 100 daily from your expenses into the savings jar, make sure you can commit to it.
You can choose to save this amount on a separate saving account that you do not access often. Alternatively, you can invest in the Jar app. The app allows you to save as little as ₹1 daily and invest the amount in digital gold worth the same amount.
Q2. Is there a minimum amount that I need to save?
There is no minimum amount that you should save daily. It can be as low as ₹10. You can increase this amount according to your affordability. But ensure you choose a value that can be maintained consistently without any problem.
It is better to start with a small number and slowly climb higher with days or weeks as you determine the balance between your monthly expenses and savings.
Q3. Will there be no lock-in period for the money accumulated in the Jar app?
Jar app is one of the best platforms to save nominal amounts daily. However, many people who are new to investing are concerned about the lock-in period. A defined timeline is when your invested money and accumulated interest remain locked.
You won’t be able to withdraw the funds during that period. But fortunately enough, the Jar app comes with a no-lock-in period. As an investor, you can start your daily savings using digital gold at your own pace. You can liquidate the digital gold anytime and anywhere without any lock-in period restriction.
Q4. How do I encash the money deposited as digital gold on the Jar app?
Once you have deposited enough on the Jar App as digital gold, you can withdraw 100% of the deposit as real money or physical gold. The minimum period between the last deposit and withdrawal must be 24 hours.
If you aren’t aware of the steps to encash the money deposited in the form of digital gold on the Jar app, here is a complete description of the process.
- Open Jar App and log in to your account.
- Check your deposited balance and proceed with the withdrawal process if it is satisfactory.
- Tap on the "Hamburber Menu" at top left side of the Screen.
- Then tap on the "Sell Gold" section.
- Enter the amount of gold/rupees you want to encash.
- The app will ask for you to enter the UPI ID. There are multiple online payment wallets available. Go to the wallet, click on your profile, and then My UPI ID. Type the same on the Jar App window and click on Withdraw Now.
- Once the gold is sold, the money equivalent to the selling price will be added to the bank account linked to your UPI ID.
- Alternatively, you can transform your digital gold into physical gold in the form of pure 24-carat gold coins or bars. It will be delivered to your home.
Note: Remember, when you sell your digital gold, tax is applicable as capital gains, be it short-term or long-term capital gains. For instance, if you sell your gold assets (in this case, digital gold) within three years from the date of purchase, any sale proceeds will be considered short-term capital gains(STCG).
Q5. How to use the auto-invest feature?
The auto-invest feature wicks away the burden of manually depositing the fixed amount in the savings account daily. There are high chances that you may forget to deposit the amount or overspend. That’s why you can turn on the auto-save feature on the Jar app.
The Jar app offers 3 kinds of auto investment options:
- Auto-save: You can delegate a fixed amount to save daily. The app will deduct that fixed amount from the bank account connected with the UPI and invest in digital gold daily. You will get a notification about the deduction 24 hours before. Therefore, you will have much time to reject the transaction or disable the feature.
- Spare Change Investment: Every time you spend money online, the Jar app automatically rounds up to the closest 10. Then it automatically deducts the spare change from your bank account using UPI and invests in digital gold. This is a default feature.
- One-time investment: You can save separately and manually invest in digital gold using the Jar app.
Q6. Is the app safe to use?
Yes, Jar App is safe to use. It is powered by SafeGold and all transactions are done over secure banking networks. Also, the gold you buy using the Jar app is backed by VISTRA - Trustee of the Gold.
Q7. How can I pause the auto-save feature?
If you want to pause the auto-save feature on Jar App, follow a few steps.
- Open your account on the Jar app and go to "Account" section.
- Click on Settings and click on the Auto Save option
- From here, you can pause the auto-saving of the fixed amount for specific days.
Q8. Can daily savings help me save a lot in the long run?
Yes, daily savings will help you, in the long run, a lot. For example, let’s say you start depositing ₹50 daily without fail. After one month, you will have ₹1,500. If you continue this for six months, you will get ₹9,000.
And it is only your principal amount. Investing in digital gold using the Jar app will also gain interest based on the stock market’s movement.
Before you know it, you’ll have a considerable amount saved, which you can use to buy a mobile phone or give a small gold earring to your loved one.
If you continue to save daily, the amount accumulated will be so high that paying for emergencies or crises won’t be a problem.
Q9. Why choose digital gold over any other modes of investment?
Although there are many options for investment, digital gold has proven to be a much better option than other techniques. In this section, we have briefly explained the benefits you can enjoy with digital gold investment.
- Digital gold is safe and secured. So, you do not have to concern yourself with its safekeeping.
- The size of the investment is quite convenient. There is no minimum amount you must invest. You can buy digital gold worth as low as ₹10.
- Encashing digital gold into real-time cash is super easy. For instance, the Jar app offers 100% conversion.
- Like physical gold, digital gold also works as a hedge against inflation.
- The digital gold you will invest is pure (24K). Therefore, there is no question about its authenticity or genuineness.
Q10. Where is this digital gold getting saved?
When you save daily on the Jar app, your money is used to buy digital gold from the Safegold platform, which is backed by VISTRA -Trustee of the Gold. Both are 100% secured and safe. Therefore, you won’t have to worry about the safekeeping of your hard-earned money.
Hope we have answered your top questions about daily savings! Remember, saving money doesn’t have to be a chore. With baby steps and small amounts, you can create a large amount without feeling any strain on your monthly financial health.
It is no secret that saving money provides financial stability, preventing you from spiraling down into debt during emergencies. That’s not all; it is your safety cushion from life’s unexpectedness and emotional comfort when embarking on a new career path.
It doesn’t matter whether you’re cutting back on expenses or putting more money aside; the important thing is that you have more financial flexibility to deal with life’s curveballs.