Money making tips: You can make profit even if you have this type of income; 3 steps to know

Three money making tips via SIP: Even though your income may not be steady, you can earn big benefits from it. Yes, you read that right, your fluctuating income (money that you earn rises or falls every month according to work you get) can still be made to create profit for you. That is through the magic tool called Systematic Investment Plans (SIPs), which have become increasingly very popular over a period of time. So, what is a SIP? Well, SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme over a lengthy period of time and ultimately make a massive profit after a certain period. It allows an investor to buy units of mutual fund schemes regularly on a specific date of the month, which helps in building wealth in the long term. Due to a simple investment structure and flexibility fund options, SIPs have started gaining attraction of investors. An SIP can be started with as small a sum as Rs 500 a month and could go higher depending upon investor to investor. However, there is a lot of confusion regarding an SIP investment in case of a fluctuating income. 

Yes, it is definitely a great money making idea specifically designed for those who cannot invest a big lumpsum at one go. In fact, it is logically much better to invest via SIPs so that your money is put on a rising growth trajectory. Is it really possible to invest in SIPs in case of a fluctuating income patterns? Let's find out:

1. Commitment of minimum fixed amount:

SIPs not just ask for, they actually require a fixed amount to be invested each month. Therefore, an investor needs to commit a minimum amount that he\she can keep for SIPs even in case of fluctuating income pattern. Poonam Rungta, Certified Financial Planner told Zee Business Online, "Any minimum amount, which an investor can commit to invest in an SIP every month could be fixed. This amount should be kept fixed despite fluctuating income."

2. Flexibility in installments:

"SIPs have a flexibility options as well. The maximum period that the investor can skip an SIP installment are two months." Rungta said.  

The flexibility option allows a cushioning of two months to the investors. In case of a fluctuating income patterns, an investor can skip an installment accordingly. 

3. SIPs on Quarterly basis:

SIPs are not only required to invest on monthly basis. "In case of a irregular monthly income, the best option is to go for a quarter to quarter SIP. An investor can collect the amount of suitable money, to be invested as a quarterly SIP," explained