Want to Keep/Have More of Your Money?
Though we are
eager to save money, but as you know handling money is not that easy. Here’s Top 1-5 What Not to Do with Money to
keep more of your Money to keep you away from making financial mistakes.…
1. Don't stash your money in a savings
bank account
Don't make the
mistake of keeping all your money as idle in your bank account. Investing and
doing so at a regular basis is
of prime importance.
of prime importance.
The earlier you
start the better chance you have of meeting your goals. Maintaining a
reasonable cash balance in Savings Account will help you to deal with your
regular expenses and emergencies; but any additional money can be judiciously
invested to earn more returns. Remember earning 4.00% - 6.00% p.a. on your
savings bank account is not a smart move. Rather than leaving your money idle
in savings account, you can opt for flexi-deposits, where banks transfer
automatically your idle money (decide on which is idle money according to you
& inform the bank accordingly) to the term deposit to earn more interest.
2. Don't invest your money blindly based
on hearsay
Having stated
the importance of not keeping money idle, though you may have a financial
planner, don't start investing without understanding your risk profile,
investment objectives and how much you need to invest to meet your goals.
3. Don't spend on impulse, make a budget
You need to
calculate how much money you need every month. A good budgeting on household
and other expenses will help you control your finances & to have a clear
idea as to where your money goes. Identify your wants and needs and make a
clear choice. While Shopping, many items may look attractive but be not used in
end, thus wasting your money. So better avoid impulse/unnecessary purchasing to
control your finances effectively.
4. Don't invest for the short term, think
ahead
When you are
thinking of investment to earn more returns, it is better to forget about
short-term goals. Normally, Investment is suitable for Long term goals ranging
from at least 5-10 Years so as to make the most out of your investment.
5. Don't go for too many loans
Nowadays,
getting loan is easy, but if you go for too many loans at the same time, you
will end up in indebtedness. Always remember your due dates & pay it as
soon as you can. If you carry forward the outstanding dues, it will turn out to
be a huge burden as additional interest on it.
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