Dussehra celebrates the victory of good over evil, and the festival holds different meanings for different people. As the country celebrates the win of goodness over evil, why not take control of your financial situation with the right habits? On this auspicious occasion, let’s look at some financial habits that bring back your wealth to the path of security and growth.
Do Not Just Save, But Invest Your Money Smartly
This Dussehra, make your money grow smartly. Don’t let your money stay idle in a savings account. Instead, you can devise a smart investment plan to enable smart savings every month.
This is because saving over time, will only earn a meagre interest for you as compared to investments, which can fetch heavy returns with time. So, create a diversified folio, by adding the right mix of short and long-term options for it, be it via SIPs, FD, equity, or PPF.
Stay Away From Impulsive Spends And Practice Control
Being thrifty will help you save more and spend smartly. When you aim to buy something with prior planning and saving towards it, you end up saving more than expected. Also, once you get used to the practice of saving, you are bound to become more accountable for your money.
This will allow you to curb your impulsive expenses. This also means that you will shop with more consideration and take advantage of seasonal sales and promotional offers. Thus, you are likely to stay within your budget.
Stick To a Budget, Giving Yourself Flexibility When You Need It
Create a budget based on your earnings and expenditure. Add all your liabilities and EMIs first off. Then see the amount you will have in hand after paying off the essentials. Try parking aside 60% of this amount into lucrative investments and keep the other 40% for your indulgences.
It is always good to have a flexible amount in hand, every month which you can use to fulfil your family’s wishes or to fund a weekend staycation to rewind. Also ensure that you create some liquid investments or have an emergency fund to come to your aid, in times of urgent need.
Enjoy The Present Without Losing Sight Of The Future
Saving and investing doesn’t mean that you compromise your present. So, while you keep an eye on your budget and goals, give yourself enough cash in hand to enjoy your life. Whether you like eating out with friends or family or going to watch movies, do what you love without overextending your means.
While you do this, don’t forget to create wealth-building investment channels. You can keep aside a sum every month in a PPF account or invest your yearly bonus or funds from maturing investments in FDs. Ladder your funds in cumulative FD to access the interest gain on maturity or as non-cumulative FDs to access the interest regularly as per your chosen timeline.
To gain more returns from your investment choose to invest in FD from trusted issuers like Bajaj Finance. Awarded ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating you can completely trust the returns from these FDs and gain up to 8.85% interest on your investment. Also you can start investing with a mere sum of Rs.25,000 and apply for your FD online.
Don’t Let Debts Grow Out Of Hand to Become a Burden
Most experts regard debts and unpaid dues as the biggest evil in your financial life. However, loans and credit cards are not bad, as they help you fulfil your needs at various instances in your life. All this is justified as long as your net payment towards clearing debts is within 40% of your income.
The moment this crosses the 50% mark, then it may be becoming a burden for you. So, if you have debt building up, consolidate your debts using a loan like a personal loan for debt consolidation or by taking a loan against your FDs to clear your dues with ease.
This festive season, start inculcating these habits to make them an integral part of your financial life. This will keep you from veering too much from the path of right thoughts and action, ensuring that you and your family experience financial freedom.
Apart from the points mentioned in the article that should be kept in mind, i feel people should take concrete steps so that not only they end up saving money but also create more wealth out of it at the same time.
With this thought in mind I ventured into investing in a digital chits platform called KyePot. It is a mobile application which helps in saving, investing and borrowing through various plans tailor made to suit the needs.
KyePot is indeed a very good start to save and invest your money into which will take care of your goals and monetary concerns.
You can download KyePot app from Google Play Store: http://bit.ly/kyepotandroid