Plan Future Investments – The Smart Way!
To create a realistic investment plan to save money in this competitive environment where our requirements are increasing constantly but the flow of income is static or increasing at a slower pace is a big issue in everybody’s life today.
“There is a gradual increase in my income but my expenses are increasing day by day. Everything is getting damn do costly. From a long-long time, I am planning to save money for my future; but how to do it”?
Have you been asking this question to yourself?
The hardest part of saving money is to create and start with a real investment or savings plan.
Learn The Art of creating a smart an Investment Plan and Secure your Future!
- The first step is creating a realistic investment or savings plan is to figure out how much you spend. Get the data on a sheet of paper or the best way is to prepare an excel sheet and capture all the data in it so that you can make alterations, track and monitor and allocate your expenses easily month to month basis.
- Basis your monthly expenses; add a grid in the existing excel sheet and check which are the expenses that you can minify on. If it’s not possible to minimize current expenses, then jump to step 3.
- Check your savings, i.e. your total Income–your total expenditure so you can plan your savings and limit overspending. In addition to your monthly expenses, consider expenses that occur regularly but not every month, such as car insurance, health insurance, etc. While you pay for these services lump-sum, consider splitting them into monthly basis in your data sheet for better evaluation of overall monthly expenses.
- Now when everything is budgeted; the next step is to start planning to save money with whatever surplus money is left. If your expenses are so high that you can’t save that much, it might be time to cut back on some non-essentials and only you can figure it out. Spend money on absolute essentials first. When it comes to spending money, there are some things that you absolutely, positively cannot do without.
- Start with a recurring deposit; make saving automatic. Almost all banks offer automated transfers between your savings and recurring deposit accounts. Automated transfers are a great way to save money since you don’t have to think about it and it generally reduces the temptation to spend the money instead.
- You can start investing in SIP’S (Systematic Investment Plans). Over time, depositing even a small portion in SIP’S can add up immensely, and that’s because of the power of compound interest you earn in a substantial period. But remember; start as soon as you can for maximum benefit at the right age.
- Maintaining a tight budget is a must for anyone looking to save money, but if you don’t keep track of your expenses, you may find that it’s difficult to stick to your goals. It can be handy to keep a small notebook with you at all times. Get in the habit of recording every expense and saving.Today, there are many apps you can download to your phone that can help you keep track of your expenses.
- Minimize luxuries from your budget till you achieve your set goals. Unsubscribe from subscriptions that are not of much use and sucking money from your pocket and try to save on electricity and fuel and you will be amazed to see how much more you can add to your savings.
- Take advantage of discounts. Many grocery stores give out coupons and discounts at the check-out counter. Don’t let these go to waste and make important and bigger purchase at the time festivals as you can get maximum discounts at this time in markets and online stores.
- Don’t take unnecessary loans and Pay off your debt first. Left unchecked, debt can seriously derail your efforts to save money. Focusing on foreclosure of loans is also a good way to save money as directly or indirectly you save a lot on the interest part that can be later invested in something fruitful.
When savings become a part of your life and you want to take a bigger plunge consult an Investment Advisor and remember always maintain an emergency fund along with your savings as in times of need it will prevent you from scraping your investments.