Wealth Guide: If you save money, money will save you – This timeless saying is still very relevant even today. It is necessary that you dedicate a substantial part of your salary to investments that can generate significant returns. These long-term savings will be critical in helping you reach your long-term goals. Another important aspect besides investing is maintaining a conscious attitude towards saving and practicing it in everyday life. Remember, every penny you save today will go a long way toward ensuring a prosperous future.
For anyone interested in recording some honest savings, there are three main factors to regulate: spending, borrowing, and investing. This is because at some point you will have to face the need to spend on basic services, take out loans to meet the demands and invest accordingly to nurture your goals in life. Rohit Garg, CEO and Co-Founder of SmartCoin, shares his insight into some time-honored techniques to ensure your savings game stays strong.
“The key is to start saving as soon as possible. Even if you only have small beginnings, you will end up with a considerable head start that is sure to help you move forward in life. The habit of saving religiously will ensure that you receive a lot of benefits in the future, such as a solid reserve of funds that can help you navigate through all potential storms. This is a practice that you should instill in your daily routine. The best and easiest way is to start early, as that would require a smaller allocation of funds compared to savings later in life,” suggested Rohit Garg.
save before you spend
“When it comes to savings, the golden rule is that you should save a lot before you start spending. This means that you should only spend when you have put a significant portion of your income into savings. If you’re doing the opposite, then it’s about time you made a change if you want to stay on solid ground,” Garg advised.
Check bank accounts
“Many people have multiple bank accounts. It is very important to closely monitor your bank statements for any fees charged for any potential reason. It is possible that at some point these happen by mistake in which case the bank reverses them. You should also keep a close eye on minimum bank balance charges and ensure corrective action is taken,” he opined.
“If you have a family that relies on you for all financial needs, it’s wise to get enough life insurance and health coverage for all dependents. All you need to do is pay a small amount as a premium to ensure that you can easily mitigate any potential emergencies affecting your loved ones that may arise in the future,” he advised.
credit card installments
“If you’re in the habit of transferring your credit card fees every month, you’re not a decent saver if you find yourself in the throes of an avalanche of credit card fees at the end of each month. With the annual interest rate skyrocketing over 40 percent, it can be exhausting for anyone. Also, if you don’t make full refunds, you won’t be able to enjoy interest-free periods on subsequent purchases. You need to make sure you pay all remaining installments on time if you don’t want to pay late fees and other fees,” he explained.
“If you’ve previously taken out a home loan, make sure you make regular early payments and don’t put them off until the end of the tenancy. The sooner you pay off the loan, the greater the savings in terms of interest. Keeping a lower tenure also helps if your EMI is cordially paid off even after accounting for household expenses and long-term savings,” he said.
“The world has already made the digital shift. Therefore, it is only fair that you do the same. Take advantage of digital payment platforms whenever you are shopping. Whether it’s your home requirements or payments related to utilities or taking out life insurance, the digital insurance premium is typically 25 percent lower than offline insurance plans.” concluded.
(Disclaimer: The opinions/suggestions/advice expressed here in this article are solely those of investment experts. Zee Business suggests its readers consult with their investment advisors before making any financial decisions.)