Financial tips for you to save more money

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A good financial management plan enables you to deal with the ups and downs of life without any hassle. In your goal of achieving financial stability, using money properly is as important as making money first. If you don’t have a plan to spend and invest, you may be in trouble when there is a sudden need for cash. So, how do you ensure that you not only make money but also plan things in such a way that you have a backup in case of an emergency? Here we try to give some broad points which can help you save your money and use it to invest and grow financially.

stick to monthly budget

If you don’t have a set monthly budget for your expenses, it is almost impossible to figure out your spending. Categorize your spending budget on the basis of your requirement and stick to the prescribed plan. This way you can calculate the money that you need during your month and put the surplus money for better use.

save when you can

Now, many people complain that they are not able to save as their earnings are ‘too low’. Or at least they think so. So a useful way to start your savings journey can be to set aside an amount at the beginning of the month. This can be an amount that you think will not hinder your monthly expenses. You can borrow from this pool during an emergency, but if you are able to leave it untouched at the end of the month, you have a savings in hand. Now, we are not asking you to cut back on your fun and leisure, but simply being vigilant will help you manage your finances well

avoid credit

With credit so readily available, we often spend more than we earn and get stuck in a cycle. It hampers our financial stability and ability to deal with emergency needs of funds. Hence, look for loan/loan options only when it is very necessary.

Investment

A lot of people associate investing only with trading in the stock market, which is not true. The market is full of other investment options that give good returns without much risk. You can go for a unit-linked insurance plan or ULIP which offers good returns. Instead of trading in equities, investing your money in a reliable mutual fund plan can provide good return on money. And there are many government backed schemes as well.

But the most important rule of investing is research. Don’t trust anyone with your money if you’re not sure. Read, research and understand before investing

understand taxation

Paying income tax and understanding taxation policies are very important components of financial management. As a reward for paying taxes, you can get several tax benefits. Hire a tax advisor to understand policies and advise you on investment options. Choose investment options that come with good returns apart from tax benefits.

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