People invest in different types of investment instruments and one of the emerging options is change investing. It allows you to invest small amounts of spare change towards building a long-term corpus. It allows you to save and invest money in options like digital gold. Change investing has become popular.

You can consider ‘Change investing’ as the piggy bank that you may have used in your childhood days. You may have used this money to satisfy your small cravings. Your parents may have encouraged you to develop a habit of saving.

Change investing is a type of miro-investing and does not require any advanced planning. It is a convenient way of investing irrespective of the income level. As the loose spare change is collected and invested the investor will not be affected by it.

Due to the high cost of living, inflation and growing expenditure it becomes difficult to allocate a fixed amount towards saving every month. Here, change investing can provide a way of investing.

How does change investing work?

Change investing can help to cultivate a habit of saving and help to grow your wealth. Most brokers offer trading apps that offer the change investing feature. The process is as follows:

You can save the spare change every time you make a purchase. For example, if you make a transaction of Rs. 18. The user will have to give the app access to view the SMSes. The app will round up the money to the nearest 10th. In this case, it is Rs. 20 and invest the difference which is Rs. 2. It is one of the most affordable ways of investing.

You can also set up recurring payments if you want to invest starting from an amount more than Rs. 10.

Benefits of change investing

• The investors need not agree to any fixed amount before investing. Under change saving the investor does not need any minimum lump sum amount to invest.
• Investors can invest any time and in varying amounts. Even those with irregular earnings can invest their spare change. You can also set up a recurring investment of an amount of your choice.
• Change investing is a DIY online mode of investing and it can be used anywhere and anytime. As it is a digital mode of investing it has become popular with the young.
• You can invest in options like digital gold at amounts as low as Rs. 10. You can start your investment journey with small amounts. The time taken for transactions is also less. Most investors know that gold is a robust product with a strong return potential.
• Investors can exit their holdings at any point in time by liquidating their gold at the current market rate.
• The investment is secure and 100% safe as if you are directly investing in digital gold.

Appreciate offers an app that offers the ‘Change investing’ feature.

The author is a writer and likes to write about the various investment options available. Here, the author has explained about change saving and its benefits.