Saving money is hard when you are self-employed. No employer is withholding taxes for you, or / funneling matching money to a provident fund for your retirement.
It's all up to you, the entrepreneur. (Some call this the dark side of self - employment). And when cash flow is less than ideal, sometimes it is hard to have the discipline to direct money to taxes & savings.
Following the resolutions / tips mentioned below in a disciplined manner will help to reduces expenses significantly & increase savings and Investments:
^ Do Away with Unwanted Expenses:
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| Mr. Anil Rego, Right Horizons |
One may think, if the government is doing it, there is no reason why you should not run a personal deficit. But, you may never make it big with that attitude. It is pertinent to ensure that you spend with ample prudence. The money laid out should be towards needs and not wants. It is easier to spend less than it is to earn more. A little cost-cutting effort in a number of areas can result in big savings.
^ Stick to a Budget:
This is a simple method to track where money is headed & can also help identify areas where there is scope to trim costs.
^ Avoid Late Payment Fees:
Often we end up paying more on our bills as penalty charges, late payment fees and so on. However, the point is either today or / tomorrow, the payment has to be made and, hence, it is always advisable to do the same before time
^ Create an Emergency Fund:
A typical emergency fund usually caters to situations such as loss of business or loss of income due to an accident or / illness. The emergency fund should be sufficient to meet expenses for about six (6) months.
One can use avenues such as savings bank account, FDs (fixed deposits) and liquid mutual funds for this purpose.
^ Get a Grip on Taxes:
Try to understand your income as per income tax rules and regulations & tax implications over it. Make investment in various financial instruments which gives tax saving benefits.
About the author..
Mr. Anil Rego is CEO & founder, Right Horizons
Contact
Right Horizons
Contact Us
Bangalore - Head Office
Right Horizons,
6, Arakere Village, Begur Hobli,
Bangalore - South Taluk, B.G. Road,
Bangalore - 560 076.
Email : contactus@righthorizons.com
Contact Numbers
Phone: +91 080-65687503 to 65687518
Mobile: +91 98453 99780
Bangalore - HSR Branch
Right Horizons,
1213, 1st Floor, 22nd Cross,
HSR Club Road,
HSR Layout, Sector-3,
Bangalore-560034.
Email : contactus@righthorizons.com
Contact Numbers
Phone: +91 080-65687521 TO 65687526
Bangalore - North Branch
Right Horizonss,79, MM Road,
Frazer Town,Bangalore - 560 005.
Email : contactus@righthorizons.com
Contact Numbers
Phone: +91 080-41252179
Hyderabad - Right Horizons
Shop 201, 2nd Floor,
Sufi Chambers, Road 1,
Banjara Hills,Hyderabad.
Phone: +91 040-66415455/57/56
Mumbai - Right Horizons,
512A, Arcadia, Hiranandani Estate,
Off Ghodbunder Road, Patlipada,
Thane (W) - 400 607.
Contact Numbers
Phone: +91 22 3225 2864
Mobile: +91 80970 20044
Chennai - Right Horizons,
Old No 166, New No 14,
First Floor,Eldams Road, Teynampet, Chennai -600 018.
Phone: +91 044-42112717/18/19
Walk-Ins Welcome
Our office is open from 9:30AM - 6:30PM, Monday to Saturday.
Right Horizons <contactus@righthorizons.com>
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