5 Simple ways to Invest more money
by Mr. Harshendu Bindal,
Most of us are squeezed for time, despite the best of technology available
at our finger tips.
In comparison, our earlier generations were able to utilise
their time much better despite being 'low tech' and not 'online'.
Same is the
case with their savings.
The latter were able to save with much greater ease
and perhaps save a higher percentage of their earnings versus our generation
which is finding this difficult.
This is despite most being single earners earlier vis-a-vis both spouses
earning now. While higher expenses as part of a changing lifestyle and many
more avenues to spend today, could be passed off as an explanation, the
question still remains:
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| Mr. Harshendu Bindal, Franklin Templeton Investments |
Are we trying hard enough to invest?
To help you invest more money, here are five simple tips:
1. Spend what is left after saving rather than save what is left after
spending..
This is one of Mr. Warren Buffet's famous quote and a good starting point to
save more. To do this, start documenting your income and expense details to
calculate monthly saving.
This way you know exactly how much you save and can
also pin point some expenses which can be cut down further.
2. Control your online spends..
There is an online retail explosion in the country. It has been observed
that convenience and discounts have resulted in more impulsive purchases than
those which may be need based.
To get over this, do ask these questions before
your next online purchase:
Is it an impulsive buy just because there is a discount?
How often are you going to use the new product?
Is life going to change much if you decide to postpone the purchase?
Your answers will help you to go ahead with the purchase or not.
3. Pay off your expensive loans..!
Out of your liabilities, check those that carry a higher interest rate like
credit card dues, personal loans, etc... and pay them off.
4. Be 'term' insured..
Prefer 'term' insurance to 'traditional' insurance.
You may save on premium
by going for a higher insurance 'cover' rather than a higher insurance
'premium'.
5. Check out various icome tax saving options..!
Besides the popular section 80C option to save taxes, explore various other
sections which may allow you to save more taxes. Some companies also offer
flexible salary structures to save taxes.
Any tax saved can add to your savings
kitty.
Once you do this, it is also important to deploy these savings in inflation
beating investment avenues.
A mutual fund SIP is one such avenue. It is also
like your EMI which helps you to achieve long term goals through consistent,
disciplined investing. You can start with as low as Rs 500 per month.
About the author..
Mr. Harshendu Bindal is President at Franklin Templeton Investments.
Harshendu Bindal
President at Franklin Templeton Investments (India) Pvt. Ltd.
- Mumbai Area, India
- Investment Management
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