Many people don’t get around to investing at all because they think what they earn is peanuts. They think you need to be a Tata or an Ambani to invest. But getting into this chicken and egg situation can mean that you never get started at all!  

Starting early is really the key to how much wealth you manage to amass by middle age. Remember the compound interest formula from school?  A=P*(1+R/100)^N. The most important letter in that formula is N and not R.  

If you had a choice between investing ₹10000 in a 10 year bond earning 7 per cent and a 5 year bond earning 10 per cent which would you choose?  The first bond would get you to over ₹19000, but the second one would get you to about ₹16000.  

Watch:Why should you invest?  

So however little you manage to save, make a quick start on investing. Contrary to perception, most of the investment options you can think of, allow you to start small.  

Bank FDs: Most banks allow you to park money in fixed deposits ₹1000 onwards 

Bank recurring deposits: If you want to start even smaller, open a recurring deposit or RD account with ₹500 and top it up with multiples of ₹100 every month.  

Read: Profiting from mutual funds: How to win with small-cap funds

Post office schemes: The post office offers multiple schemes ranging from term deposits to National Savings Certificates, Public Provident Fund and special schemes like Mahila Samman Certificates, Kisan Vikas Patra and Sukanya Samrudhi. They offer good interest rates and are absolutely safe as they are Central government backed.  Most of these can be started with ₹500 or ₹1000.

Read: Bank deposits, small savings: which is better?  

Mutual fund: Mutual funds allow you to start with a minimum of ₹5000 for lumpsums and ₹500 for Systematic Investment Plans or SIPs. Once you commit to a sum you will need to stick to it for the committed period. But you can commit for short periods like 6 months and extend it as you go along. A big advantage of investing in open-end mutual funds is that you can withdraw your money in part or in full at any time of your choice.  

So even if you think you earn or save peanuts, make a start with investing. A journey of a 1000 miles begins with a single step.