Saturday, September 18, 2021
HomeFinanceHow to Make Your Money Work Harder for You

How to Make Your Money Work Harder for You

Do you leave your money in a savings account, where it gathers dust, without giving you the returns it ideally should? You need to learn how to make your money create wealth for you. This is where making smart investments can come to your rescue. In addition to this, consider everyday life hacks, like saving money when you port your mobile number to a more value-for-money postpaid plan, such as those offered by Airtel. 

Experts say that at least 10%-15% of your gross income should be invested in useful schemes. The way to securing your retirement years or your children’s future is not just hard work at your job, it also requires you to know how to make your money work hard.

Make Your Money Work for You

Here are a few great ways to save money and help it grow into an admirable nest egg.

Choose Systematic Investment Plans

SystematicInvestment Plansor SIPs sync well with your income flow, such that you can start investing with as little as ₹500 a month and gradually increase regular investments as your income grows. SIPs help bring in financial discipline through regular investments.

Get Rid of Your Debt

If you are repaying loans, you are also paying an interest rate. The longer you stretch your debt, the more money you will end up repaying as interest. So, focus on repaying all your debt as soon as possible. For instance, if you have credit card debt, don’t pay just the minimum amount. Pay the highest amount you can so that the repayment amount begins to dwindle. You could even consider moving outstanding loans to a plan that offers a lower interest rate.

Switch Your Mobile Service Provider

When you port number to Airtel’s bestselling postpaid plans, you get value for money with unlimited calls, 100 SMSes every day and internet with data roll over each month. You also get to save through free Netflix subscription for three months, Amazon Prime for 1 year, ZEE5 shows and movies and much more. And, the postpaid plan start at just ₹499 per month.

Invest in Equities

If you have a higher risk appetite, consider investing in stocks. If you are unsure of doing so on your own, you can choose an equity linked mutual fund, which is managed by a professional fund manager and gives you higher returns than debt funds. However, remember that higher returns also entail higher risk. Therefore, if you are looking to create money and are willing to take on the risk of a market-linked instrument, consider equities.

Plan a Budget

Retirement does not necessarily mean you need to give up on living life to the fullest! So, plan for retired life well in advance. This means keeping track of your monthly expenses and putting away a part of your income towards pension funds and other types of investments.

Save on Taxes

Make use of smart methods like income splitting to ensure cash flow even after your retirement. Invest in schemes that offer tax deductions, so that you are not only creating wealth for the future, you are also saving money today. This way, you can live to the fullest today, as well as after retirement.

Invest in Fixed Deposits

Whatever extra money you have, get benefits out of them by putting them into fixed deposits. Fixed deposits usually offer great returns than savings accounts. They are a great option if you are wary of mutual funds and other market-linked investments.

Peer to Peer Lending or P2P

Now regulated by the Reserve Bank of India, peer to peer lending allows you to lend your idle money to friends, who pay an interest rate on repayment, just like a bank loan. This way, you can generate higher returns than fixed deposits, since there are no risks of the borrower not paying you back. You are free to decide the lock-in period for your funds. Loan tenures can beas low as 3-6 months.

Have a Definite Financial Plan

Unless you have a defined plan, wealth creation could be a tough task. Make sure to have a proper financial plan, with realistic goals and action plans to achieve them. You can set targets for your children’s education or marriage, retirement, investment income and so on. After this, calculate how much you need to save and where should you invest. The best way to do this effectively is to link your investments to specific goals. Having a financial plan can help you achieve as many dreams as possible. Just streamline your investments according to your plan.

There are multiple ways to get your money to generate more money. It completely depends on what you are willing to do to make that happen. Why not start right away by saving money with a value-add postpaid plan through the port your number facility?

1ecb56555b95dc15fc458db3dc1a18f0?s=117&d=mm&r=g
Olivia Wilson
Olivia Wilson is a digital nomad and founder of Todays Past. She travels the world while freelancing & Guest blogging. She has over 5 years of experience in the field with multiple awards. She enjoys pie, as should all right-thinking people.
RELATED ARTICLES
- Advertisment -

Covid Cases

All countries
228,270,957
Total confirmed cases
Updated on September 17, 2021 9:36 pm

Most Popular

All Categories

Business Module Hub