Which is the best way of saving money in India?
Posted on: 13/Jun/2017 3:00:25 PM
This is a very common question we all have in mind. We want to save money, but we are not sure of the ideal way of investment. So, here is the answer for your question. Some of the simple ways of saving money in India are listed below:
Open a savings account:
Opening a savings account is the first and foremost step in making financial progress. While opening the account, also opt for internet banking and debit card facility. You should deposit your income and excessive cash in this savings account. This money you save will fetch you with interest which will by meagre amount enhance your earnings.
Create SIP:
Based on your life goals, select some mutual funds and create SIPs. Right at the start of every month, this SIP will automatically get deducted from the account, making it mandatory for you to save an amount right at the starting of every month. You should choose equity, debt as well as liquid mutual funds so that you can meet all your long-term needs and also immediate redemption needs in case of emergency.
Make bill payments automatic:
You can make your bill payments automated with the help of net banking, e-wallet or other sorts of online bill payment options. So, you will not miss out paying any bill before the due date. There will also be no wastage in the name of penalty fees for late payment.
Restricted credit card usage:
Yes, you can definitely have a credit card in hand. However, it is important that you use it with caution. You should spend it only in case of a need or when you want to avail the attractive rewards they offer. Remember, credit card interest rates are way too high. Hence, make it a practice to pay your credit card bills completely. In a month, make use of just 20 to 30 percent of your credit card limit and not beyond.
Insure:
No matter how healthy you feel about your body, you should always opt for a health insurance. All your savings and investments can become void with just a simple hospitalization. So, to safeguard your money, a decent sized health cover is mandatory.
Needs vs Wants:
Your needs are your basic requirements like nutrition, shelter, clothes, etc. When it comes to wants, those are avoidable such as holidays, electronics, hanging out or dining and so on. You should prioritize your needs first and meet it first before you opt for spending for the wants. By reducing your expenses towards wants, you can save more for your needs and savings and investments. You can thus achieve your financial goals like buying a new home.
