Introduction:
Money is always ultimate. Individual success is always measured with money. So saving your money is always important. Our ancestors used to save half of their hard earned income for future protection & and to manage unexpected emergency expenses.
But in recent decades the percentage of savings has decreased drastically. The recent Survey delivers unimaginable numbers, 60% percentage of indian males save less than Rs 5000 in their savings account.
Why are youngsters lagging in saving?
In simple terms, youngsters desire to own all products rather than a necessity. Government is taking precautionary measures to increase the Saving Rate of every individual.
Some of the barriers which stop people to save money are Loans, EMI, Expensive shopping, Lack of knowledge in Credit Card et.,
Let us see how to save money easily.
Invisible Expenses:
The most hazardous thing in life is invisible expenses. There are dozens of invisible expenses. We will start from small and later go to bigger one.
Start it with your phone connection, instead of using postpaid. Try to use prepaid which is very cost effective. Sometimes people used to pay their EMI’s late. End of the day, you have to pay the EMI with a fine. Every category (Insurance Premium, Electricity Bill etc) asks you for late payment charges.
In a nutshell, you might look at it as a small amount but over a period of time you at least would have lost a few thousands.
Prepare a Budget & Avoid Unnecessary buying:
Try to make your monthly budget, the budget will give you perfect numbers. Monthly budgets always help people to make wise decisions. List out all your expenses and find out which expense is necessary and which one is not. For example Owning one Tv is good but trying to buy another TV for Bedroom is not necessary. Logic does play an important role while saving your money.
Offers & Deals, which one to choose & which one to avoid:
Always try to accept offers from big corporates, because they provide offers for brand establishment & reach. I would like to give two examples of online shopping & seasonal buying.
Online Shopping websites offer a wide range like Interest Free EMI on your credit card, Cashback offers, Coupons & Bulk Auction Buying.
Seasonable Buying happens at festival time. From Clothing to Home appliance items. Every company tends to sell it at bulk volume with low prices. Buying your product in a seasonable period will reduce cost and you can save upto 10%.
The most important offers to avoid is never go for Buy 1 & Get 1 Offers. Rather than offering you the discounts, they trigger you to buy more products.
Manage your Investment portfolio:
Investment plans are always a better option to save your life in future. Because life brings unexpected sorrow suddenly, to overcome or to balance it you must have some basic investment plan which can provide you immediate liquidity.
Let me share you some of the few money saving schemes:
Public Provident Fund:
PPF is totally different from the normal pension fund. Infact, saving money in a Public Provident fund will give tax benefits and you get higher interest than bank fixed deposits. Moreover, the returns from this fund are completely tax free & money invested will double in the next 9 years.
Equity Linked Saving Schemes:
ELSS provides you a higher return of 15 – 18% and these schemes have a low lock period of 3 years. If you are looking for any small investment, ELSS is a great option for you. There is no taxation upto Rs 100000. And Doubling of investment will be achieved within 4 to 5 years. The only disadvantage over here is if the return crosses more than a lakh, 10% of taxation will be deducted from your sum amount.
