Financial Awareness Level
Boost your Savings
Everybody likes to see their money grow quickly. But, most of the time we find people complaining that they do not have enough money to save and invest. Saving is not as difficult as it seems. In fact, you can even use some smart and easy tricks to boost your savings manifold. Here are some ways you can enhance your savings.
Track your expenses
One of the best ways to ensure that your spending habits or impulses do not get in the way of your life savings is to create a budget with an expense tracker. While you may not always be able to stick to watertight compartments, it will definitely give you a better hold on your spending habits and help you gain control of your financial future.
Here is a sample of an expense tracker
| Fixed Expenses | Monthly average(Rs) |
|---|---|
| Investments/savings | |
| Rent or mortgage | |
| Loan repayments (other than mortgage) | |
| Credit card expenses | |
| Life insurance premiums | |
| Electricity | |
| Telephones (including cell phone and internet connection) | |
| Child care (if any) | |
| Pet care (if any) | |
| Support to family members (if any) | |
| Sub Total |
| Variable Expenses | Monthly average(Rs) |
|---|---|
| Groceries | |
| Entertainment expenses | |
| Transport | |
| Home improvement/repairs | |
| Digital TV expenses | |
| Gym memberships | |
| Doctor's bills | |
| Dry cleaning bills | |
| Personal allowances | |
| Sub Total | |
| TOTAL MONTHLY EXPENSES (SUM OF TWO SUB TOTALS) |
Make smart purchases
More often than not impulse or unplanned purchases throw monthly budgets out of gear and jeopardize your financial security. Here are some ways to save money and arrest your spending.
- Make a shopping list each month and stick to it.
- Carry only cash while shopping.
- Look for sales and bargains in stores, but do not get lured into buying items that are on sale, but you don't actually need.
- Compare prices of the same item on various websites.
- For things of regular use buy in large quantities and stock up to save money.
These simple and seemingly common money habits can go a long way in helping you save in the long run.
Avoid using credit cards
Try and keep credit card usage to a minimum. Keep only one or two credit cards and keep spending limits low. Frivolous purchases can lead to a debt pile and become unmanageable over time, so use your credit card judiciously.
Also, in order to keep your debt under control, make sure you pay your bills every month. When you miss a payment, you end up paying a penalty and a higher rate of interest on your card annually. Thus, by deploying some easy and simple methods you can cut down on your monthly spending and ensure that your savings grow over time. You can then use these funds to invest in various asset classes and enhance gains on your portfolio.
The information contained in this document is for general purposes only and not an investment advice. Readers should seek professional advice before taking any investment related decisions.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS. READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
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Disclaimer
An Investor Education And Awareness Initiative Visit https://www.hdfcfund.com/information/key-know-how to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website (www.sebi.gov.in/intermediaries.html). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally, investors may also lodge complaints directly with the AMCs. if they are not satisfied with the resolutions given by AMCs, they may raise complaint through the SCORES portal on https://scores.gov.in. SCORES portal facilitates investors to lodge complaint online with SEBI and subsequently view its status. In case the investor is not satisfied with the resolution of the complaints raised directly with the AMCs or through the SCORES portal, they may file any complaint on the Smart ODR on https://smartodr.in/login.
