Monetary resources are indispensable and building them upon is essential. Isn’t this that one thing, each New Year presents us with? And, wondering why you didn’t do enough to save is a common grudge. Fortunately, unlike few other issue, this one has an easy fix! All you need to do is take the right financial steps to complement your fiscal goals and needs. This needn’t be a complicated process, and here are three simple saving tactics that will go a long way.
Clear Your Bills First
While clearing your bills ensures that the most important financial obligations are taken care of first, it also helps you cut down your expenses. Wondering how? By clearing your dues first and maintaining accounts of the same, you are less likely to indulge in meaningless or unnecessary expenses. Further, you are less prone to missing out on due dates because of sudden emergencies that keep you tied up. This means no late fees that add to expenses too.
Save, Save, and Save
The importance of saving is constantly re-iterated in every personal finance article you read and with good reason. Without savings, you will be unable to maintain emergency funds while keeping inflation in sight. You also do not have capital for investments. So, make savings a regular habit. Additionally, set up separate reserves for your regular savings, capital collection for investments, and the funds that will add to your cash reserve for emergencies.
Investments add body to your savings that tend to diminish over time with inflation. Along with diversifying your portfolio for a healthy balance, focus on long-term instruments as these tend to give the best returns. Don’t shy away from choosing risky instruments as you can gain higher returns than on a secure instrument. But do consider your risk appetite before doing so or take help of an expert to get the right advice. The diversification of your portfolio will help balance the risk. If needed, choose to invest in lucrative short-term instruments to avail funds in the near future for upcoming financial goals. Have a professional plan your investments if you require additional help. Mutual funds, NPS, PPF, FDs, gold ETFs, equity and real estate are all options that should be a part of your portfolio.
With the above pointers, you are sure to make 2019 a better year, at least financially! Choose your moves wisely and remember to account for all your incoming and outgoing monetary transactions. This will also help you file taxes more easily at the end of the financial year.
The writer is CEO, BankBazaar.
BankBazaar.com is a leading online marketplace in India that helps consumers compare and apply for credit card, personal loan, home loan, car loan, and insurance.