Friday, 19 February 2016

Investment starts with Saving.

Hi All, 
Some of my reader ask me I don’t have money at first place to start investment. I told it’s not about you don’t have money it’s about your spending habit. And I thought to write something about how to save little in daily life and get maximum.

“Penny saved is Penny earned.”

Below are the few idea which I point out for saving and which I also personally used successfully:

  • Make monthly budget: Make your monthly essentially spending budget like spend of EMI, rent, Utility bills, and transportation. Once it done try to figure out is any possibility to cut the spending like now days online portal like PayTM providing discount on Electricity bill, DTH bill, and mobile bills.  Using Paytm only I am monthly saving 200 to 300 on utility bills 
  •   Avoid using credit cards: I have seen the people who spend too much while they are using credit card. But when people spend less when they need to pay by cash. Specially in supper market people buy unnecessary thing forgetting at the end of the month they need to pay credit card bills. Credit card is good in some case like buying electronic online with good discount offers of cards. 
  •  Less outing: Going every weekend out for dinner or lunch is not necessary. Eating unhealthy pizza and burger really not worthy. Eating outside will not only effect your pocket but also your health. Also not all movies required to watch. Before spending 250 to 300 in movie, get review of movie from friend or online and decided is it really necessary to watch ? You can buy good book in 300 and many can read it as well.
  • Exercise: I know you are thinking what the exercise is has business with saving. Daily exercise will keep you fit and healthy. How many times you go to doctor? A single visit for fever can cost you 1000 buck. To avoid it stay fit.  30 min of daily exercise or yoga is enough.
  • Research before you buy: Go and do proper research before you buy things like mobile, TV etc.  As there is many online as well as offline sellers are available which offer different price. There are many festival season offer available where you can get maximum discount, just you need to wait. Like I want to purchased Asus Zenphone2 -64 GB which was at 23k on flipkart. I delay my purchased and get it on discount price at 19k (2k discount by flipcart+10% discount on credit card.). Saved 4000k by waiting for a month.
  • Save power: Yes, save electricity. Switch off your light, AC , fan when not required. Make it habit. Little daily saving can make a difference and at the end of month you can see it in the bill.
  •  Use public transport: If you are not in rush, then use public transport. Why you need car to go office? If you can walk to place then avoid vehicle.
  • Be happy with what you have:  Don’t go on peer pressure. Don’t compare your life with other. Be happy and live happy.
 Following above basic thing in day to day life can help you to save at least 1000 buck.
Now once you have saved, don’t go and party. Invest your saving in Equity Mutual Fund through SIP and you can see your saving grow over the period of time.
Read the previous blog to know magic of compounding

Be Smart. Invest Smartly.