How To Save Money And Invest Wisely?

We have told you briefly about some tips on saving and investing wisely. The earlier you start working towards them the better it is for you, especially if you have existing liabilities and dependant members of the family. We hope this article has been informative for you. Happy investing!

Savings is a very important aspect of financial planning that is often neglected, especially in the initial years of one’s career. If you are a working professional in Mumbai, apart from the skyrocketing costs of living, you will face the additional challenge of trying to save some money out of your paycheck, for the rainy day. While savings is just one aspect, the other part of sound financial planning constitutes investments. While there is no dearth of investment consultants in Mumbai, you can also go about setting up a portfolio on your own, provided you dedicate time and effort to understand the nuances of modern day investing. If you are struggling to make ends meet and always find yourself running out before the end of the month, we have come up with an article that will tell you about tips to save money and invest wisely:

• Existing liabilities: Before setting forth on the nobel undertaking of saving and investing its essential you get rid of existing liabilities first. Credit card bills, college education loans, etc are all liabilities that can wreak havoc with your financial planning. Make sure you deal with them first so that you can start from a clean slate, with peace of mind. Come up with a systematic plan and include a timeframe to clear all your dues and debts so that it will make the path ahead, easy for you.

• Separate bank accounts: Most people, especially young salaried individuals make this rookie mistake of relying solely on their salary accounts, which makes it difficult to manage expenses and calculate savings. Get a second bank account and as soon as you get your paycheck at the beginning of a month, set aside a fixed some and deposit it. Try to make do with what you are left after putting aside a fixed sum every month, which will constitute your savings.

• Plan for the future: Inflation, rising healthcare costs, is something that hits everyone hard, and you should plan your savings and investments accordingly. Factor in year on year inflation of goods, and rise in living expenses to get a true idea about how much you will end up with and would need as savings to have a comfortable life.

• Go to a professional: As we have told you before, there are numerous investment planners in Mumbai and even the smaller cities of India, that can help you go about your investments systematically. Rely on these professionals, to manage your corpus and it will take a load off your mind. At the end of the day you will find their commissions to be worth it.

• Start investing: In the world of investing money lying idle, is money wasted. If you are a completely risk averse person you can even go for foolproof investing options like fixed and recurring deposits which all banks provide. You can also look at Mutual funds, systematic investment plans, stocks provided you have a good consultant or have a minimal level of domain understanding to assess risks and study market cycles.

Snpfp are certified financial planners who are committed to make your money work as hard as you do! One of the biggest names in Mumbai, We help you achieve your financial goals in a planned and structured way.

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