Owning a home and a car, travelling often, disease-free life and memorable family get-togethers are things that the average Indian dreams of for their post-retirement life. However, you do not have to be a millionaire to fulfil these dreams. A few smart financial habits, started early in life, are enough to help you accumulate sufficient wealth for the future. It is not an overnight process, so make sure you give enough time for your money to grow.
The venture might not sound easy but the end-result is definitely worth it. Therefore, financial advisors suggest plenty of ways to put you on the right path. You are likely to make more money, manage it better and use what you already have to your best advantage. So, take a look at the top tips to start building your nest egg today.
1. ELSS Funds in India
This financial instrument has the ability to generate good returns in a medium to long-term investment timeline. It has a lock-in period of 3 years, which is the shortest among mutual fund investments. Further, one can easily invest through the SIP route, so that you don’t need to make a big lump sum payment. In fact, it also offers impressive liquidity, allowing you to withdraw in the event of an emergency. Talk to your advisor to know the different ways to invest in ELSS funds in India and see your savings multiply over the years.
2. Savings Account
Another good way to put aside money for a rainy day is to open a savings account. You are likely to earn interest as high as 7%, which can help your money grow. Further, the RBI has strict regulations to maintain the safety of your funds. You can also set up a fixed recurring deposit from your account, so you do not have to manually transfer funds at regular intervals.
3. Optimize Your Spending
Besides understanding what an equity fund is and how they can help grow your money, consider a few self-dependant ways of improving your future financial status. Start by finding good deals on the internet, cutting down on unnecessary expenses like multiple OTT subscriptions and price negotiations wherever possible. Instead, channelize your funds towards more important stuff like healthcare, educational and life insurance.
4. Track Your Money Outflow
It is difficult to save money if the cash outflow is larger than the inflow. Therefore, try to track your daily expenses and identify unnecessary ones. Curbing such spending could be quite fruitful in the long run. In fact, regular tracking could help you take better control of your finances and encourage better investing and saving.
5. Minimize Liabilities
Regardless of your income level, try to eliminate unnecessary expenses. For example, minimize your tax burden by investing in tax-efficient products. This way you do not have to give away a significant part of your savings as taxes. Further, pay off debts and EMIs on time and clear bills regularly. These will ensure zero late fees, which can help you save money.
Putting these simple tips into action can make you more productive money-wise. These are safe, reliable and profitable way to build a corpus. You will be able to save sufficient amount to enjoy a happy and secure retired life.