As a millennial your monetary priorities are likely to be different and unique as compared to the middle-aged Indian. You may want to take a month-long sabbatical every few years to travel or to learn a new skill, buy yourself collectibles at an auction, or purchase the latest gadgets on a preview sale before they hit the shelves. But as per the Aspiration Index survey that encapsulated the outlook of Indian millennials, creating wealth is also a top priority for you.
While you work hard to ensure uninterrupted smiles, simultaneously also save for milestones and long-term goals, here is how you can strike a balance between both this year.
Identify Your Goals And Decide Upon A Course Of Action
You do not have to live on a shoestring budget or eliminate on all treats and luxuries to start saving. Instead of looking at it as a gargantuan task, simply identify your goals and dreams. Make a list of all that you want to achieve and purchase, and compartmentalise your short-term goals and long-term goals. Think of it like arranging a deck of playing cards in order. Once your goals are on track decide upon a budget after studying all the variable costs. Then begin saving based on the number of years you have in hand.
Automate Deductions To Generate Savings Without Even Realising It!
‘I am definitely going to start saving next month’ is something you’re probably guilty of having said and forgotten promptly in the past. So, save yourself the mortification and in the spirit of the new year, commit by setting up automatic deductions from your savings account. This means that you can start a recurring deposit or begin a mutual fund investment by deciding on an amount and automating its deduction from your account by a fixed date each month. Why will this work? It’s because once you’ve given instructions you’ll have no choice but to set aside the amount that is going to be deducted. If sheer will power won’t motivate you, the penalties you’ll incur if your account has insufficient funds surely will.
Swap Impulse Decisions For Planned Ones To Keep Things Light On Your Wallet
Giving into your urges once in a while is okay, but if you just can’t resist buying the latest PlayStation game or a limited edition designer bag—stop! Make friends with end of season sales, coupon/discount codes, combo offers and EMI shopping. It’s the best way to buy what you want to without backing yourself into a corner.
Another smart tactic is to build your cart and wait for a few days or weeks, if you’re feeling truly resolute, and only shop for items you want after the waiting period is over. This way you’re splurging only on things that you genuinely appreciate.
Planning for both short- and long-term goals using these tips will help you develop a savings habit. When you’re financially prepared, you’re sure to be more confident and capable of striking every goal off of your bucket list!
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.