Save Your Hard Earned Money
These days market is full of lucrative options suggesting you to put your money to save it for future needs. Some even offer customized plans depending upon your financial goals like you want to buy a car or house, for education and so on. In my perception the traditional methods to save money are more effective then these garnished products. Don't get confused I am not "purani vichaar dhara" n all but want to tell you the actual and practical methods that are very easy to adopt and really work, I mean I have used them personally and they worked for me.
Method 1: Never leave the money in you saving bank account. Yes, you read it right, it actually helps to save money because we can't control our spending till we have fund which is easily accessible. When we have huge money in our saving bank account we never think to stop spending on small things like shopping online for the stuff we might not need actually, but we want to have it. I will suggest short term fixed deposits which can be created using your bank's mobile app. Calculate you actual expenses like rents, bills payable, electricity and so on till your next salary or receipt, keep these expenses plus 10% as contingency and transfer the rest to fixed deposits. In few months you will be happy to see the pile of fixed deposits in your bank
Method 2: Never make big amount fixed deposits. Yes again you read it right. Always try to make multiple fixed deposits of smaller amount and with different maturity period. This will help you in case of emergency fund where you can simply redeem smaller fixed deposits for the amount required and not disturbing the whole savings.
Method 3: Opt for National Saving Certificates. You can search over internet what is NSC in case you are not aware, but it is one of effective way to save money which is fading in today's era as millennial don't know or don't bother for it. NSC is a Indian Postal saving Scheme which has a lock-in period and offers interest higher then fixed deposits. Assume for a moment you misplaced a piggy bank full of money and found it after few years. What will be your reaction and how much that money means to you? It would mean a lot because hadn't that piggy bank been lost, you must have already expended that money way before, but now you can use it wisely. In NSC you don't see you money for few years which means you can't expend it but later on put to good use.
Method 4: Go for LIC/ SIP at early age as possible. I know this is not a new thing to you as all policy agents suggest you same. Start with as low monthly payment as is easy for you. Don't rush for high value SIP or LIC. You always have option to start second one and third one and so on. Over the time you will see that without much burden on your pocket you have saved hefty amount of money.
I will keep a pause to this blog here as I want you to experiment with these simple traditional yet powerful and effective ways to save your hard earned money. I will surely share more experiences related to money and finance.
"Always expend responsibly and shop stuff you need and not the one you simply want to have."