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News Topical, Digital Desk : If you have decided to skip your SIP installment this month and think that it doesn't matter, it's only one month! Then you are probably going to make a big mistake. Perhaps you don't know that this small mistake can become the most expensive mistake of your future?
Let's burn the future of 5 lakhs
Suppose you invest Rs 5,000 every month in SIP and this continues for 20 years. If the return is 12% per annum, you will get around Rs 49.5 lakh. But if you skip just one year of SIP (Rs 60,000), your final amount can directly decrease to Rs 6.5 lakh. Why? Because compounding is a consistency-loving game. What you did not invest is not just an amount, it is money that will not grow in the future.
When the market falls, SIP gives the most benefit
People often stop SIP out of fear when the market is falling. But in reality, in a falling market, SIP gives more units at a cheaper rate, which later gives better returns when the market rises.
If you stop SIP when the market is falling, you lose the opportunity to buy at a discount. And when the market rises rapidly, you are left empty handed.
Stopping SIP stops you
The purpose of SIP is not just to invest but to achieve your big dreams like early retirement, buying a house or good education for children. Every SIP is linked to a goal. When you skip an installment, you are not just closing a notification but breaking a promise with your future.
Later, it becomes even more difficult to compensate for that loss. Either you have to invest more money every month or you have to postpone your goal. Both situations are difficult.
Inflation does not stop, so why should you stop?
Expenses increase every year, whether slowly or suddenly. If you stop SIP, your money will not grow but inflation will continue to do its job. You may think that quitting a SIP of Rs 5,000 will not make much difference, but after 10–15 years, when it is time for retirement, you will realize that the same SIP will not be able to meet even your basic needs.
Skipping SIP breaks your habit
If you have been running SIP for years, then you have formed a strong habit. But when you press 'pause' even once, that habit starts breaking. You will feel that now there is some extra money, so let's pause it for the next month too. In this way, you will not even know when 6 months will pass. Remember, investment is not just a game of strategy, it is a game of habit and discipline.
Don't stop SIP, just reduce it
If you are really facing a financial crunch, then instead of stopping your SIP completely, reduce it a little. If not 5,000, then make it 1,000 or just 500. This will help you maintain your habit and keep you on track. Use the emergency fund if needed, don't stop your SIP. And if the SIP is automated, then let it run without thinking too much.
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