Managing one’s money need not be boring. It’s not rocket science and you need not be from a financial background. You only need to show a bit of commitment.
Deciding to save is the first step towards money management. Saving money can be a powerful step towards greater financial independence. Imagine borrowing from a friend for that urgent visit to the doctor!
In case you don’t have any friends, you might have to swipe your credit card. And you know credit card is the most expensive form of debt. Repeat this a few more times and you end up in a debt trap even before you realize that.
You may have many financial goals in your mind. Like buying a vehicle or the latest smartphone or wealth accumulation. In all these situations, you need money. But where will it come from? You got to have savings!
Saving money helps you avoid falling into debt traps. Not only this, but systematic saving on a regular basis can make you rich. You may achieve your financial goals in a timely manner. Now you might be wondering how to save? And even more important how much to save? As soon as you get your salary, start putting it under various heads. These heads can be expenses, EMIs, investments, and savings.
Ensure that you save a minimum of 10% of your income every month. It can be that simple! But don’t put it in a piggy bank. Idle money in a piggy bank doesn’t grow. Even the saving bank account may not fetch higher returns.
Instead, you may invest this amount in a liquid fund. Liquid fund is a type of debt mutual fund which invests money in fixed-income generating instruments like FDs, commercial paper, certificate of deposit etc. around 4%. Invest your savings every month over a long-term and see the magic it can do for you!
