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Let your money do the job for you.

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11 Oct '23
5 min read


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We live in a world where everyone strives hard to make money to embrace their dreams in the form of a holiday destination, to be in an expensive brand outfit, or even to immerse themselves in a luxurious spa tub. This digital era opens up enormous ways to generate income online and offline. So, there is cash flow hitting our bank accounts, but how are we managing it? Are you the person who is stuck between ‘I need to save Money and You live only once’?

It’s not all about saving Money
   It is about how intelligently you save your money. It is time to give a tweak to the fixed deposits, recurring deposits, or chit funds that we got used to. Keep our eyes open to what is going on around us. The inflation rate in India now is 5.4%, which means that after 10 years, the value of Rs 100000 INR would fall to Rs 59,100 INR. Do you think an amount of Rs 1 lakh deposited as FD in banks with a maximum of 7% would beat this rate of inflation? Definitely not. There comes the significance of trading, mutual funds, SIP, virtual gold schemes, and many more conduits that would assist in wisely saving our money and growing it.

You don’t have to be a businessperson or an economist

  Understanding the stock market is no longer rocket science but something that you need to spend some time meticulously to know what is suitable for what. If our investments are appropriately placed, the returns would be really massive. It is always a better option to start with a low-risk mutual fund to understand the state of affairs. Gold is an evergreen venture as an investment, as its values never tumble, but why can’t we try the option of digital gold? Digital gold allows for better short-term investment and does not have the storage hassle; physical gold is better suited for the long term. This is highly portable and could be traded 24/7. There are even more options, like the Sovereign Gold Bond, Postal Insurance Schemes, Bharat Bond ETF, which are powered by the Government of India.
  There are many approved portals, apps, and organizations available today to support people and educate them on different investment plans. There is nothing wrong with utilizing those services and planning our future prudently. Never overlook the final sum that is going to stream to your bank accounts. As there are no shortcuts to reaching the summit, we are supposed to study each and every investment plan and then relish the gambits.

This way, you can augment your savings.
   It is a typical part of our tradition that we are so obsessed with building our own house to maintain our social status. Is it really imperative to spend an enormous portion of our hard-earned money on bricks and cement? This may sound odd, but a tweak to our perception of the financial side will open up new aspects of monetary planning for us. Have a precise segregation of your income, savings, and expenditures when you make the decision to construct a building that provides zero returns and requires timely maintenance; otherwise, life gets wedged between the vicious circle of income and EMIs. ‘Home is not a place; it is a feeling. It's high time to break the taboo of glamming up social status by building a house.

  Of course, health is wealth, but when it comes to the astute management of our health care costs, most of us are really weak sauce. We often have a voracious confidence that we will never get knocked down by any kind of ailment, which makes us loath to make use of health insurance schemes. We know how the Corona virus has crumbled the country’s economy. Likewise, we need to realize that even a severe viral infection can wipe out an entire person. Health insurance is definitely a lifesaver that would obviously shield us from a mass financial blow in case of health emergencies. There is no room for a second thought when it comes to health insurance, provided that you choose the appropriate insurance plan as per your income. Spend a bit for the premiums; it will certainly save you from spending a lot.

   Credit cards are double-headed swords. It could help you shoot your CIBIL score simultaneously, or it could make you bankrupt. Many people don’t know the fact that we are supposed to use only 30–40% of the credit margin of a credit card. To use a credit card smartly, one should have their boundaries crisp on needs, wants, and desires. Use it strategically for only those things that you can afford to pay for with cash, and be on time when it comes to credit card bill payments. Credit cards can help you establish a solid credit history, earn rewards on purchases, pay off high-interest debt, and obtain interest-free financing when handled judiciously.

Bring your A-game in financial savings. 

  Life is not all about money; life is also about money. We don’t have to look back once we nurture an astute investment and savings plan. It is not that you will be sleeping on the money, but these small changes will bring discipline to your life. These plans drive you to sort out the income in a rational way so that there is no space for overspending extravaganza. Still, you can be happy and make your loved ones happy, enjoy life to the fullest, become independent, and accomplish your dreams.

Master your money, and let not the money master you.

 

If you have made up your mind on handling your money these links below may help you

Sovereign Gold Bonsds:https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=1658

Bharat Bond ETF :https://www.bharatbond.in/

 

Picture Courtesy:https://pixabay.com/,https://www.shopify.com/

Category : Finance and Investing


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Written by Anishma K S