Day: May 10, 2024

Money is always eager and ready to work for anyone who is ready to employ it. Saving money just to save it is not the right approach. Save money to invest it and then see it working for you. But we always face a dilemma during festivals as to whether spend our money in making our festival celebration grander or to use it wisely, save it and invest it in the best possible way. We come to your rescue by providing you with few valuable tips so that you can utilize your money in the best possible way and also celebrate the festivals without compromising on the expenses. Our expenses increase manifolds and for that all thanks to the mighty credit cards! While doing shopping by credit cards we do not realize the soring bill amounts and at the time of making payments we are bombarded with huge credit amounts to be paid. It is rightly said by Warren Buffett, “Do not save what is left after spending, but spend what is left after saving”. If we all understand his words, we can avoid over spending during festivals to a great extent. Let’s now look at a few prized tips to follow during festivals: Before every festival, make a strict budget to be followed and try not to exceed it. Thanks to the Big Festivals Sales which provide great discounts on almost everything you can think of buying during festivals. Make a list of items to be bought and timely make purchases of the same utilizing the gigantic discounts thus saving your valuable money. Make list of expenses which need to be attended mandatorily like any rent to be paid, school fees, monthly bills, insurance premiums, etc. then deciding on your festival budget will make it easier for you to plan your festival shopping. While making payments by credit cards, always try to avoid late fee charges by making credit card payments on time. It’s also very decisive to plan your festival budget as per your income. Spending more than our income is never a great idea. Spending money to show people how much money you have is the fastest way to have less money! Avoid impulsive and emotional buying. Don’t spend money to buy things you don’t need or to impress people. Afterall it’s your spending habits that make you rich and not your salary.  It’s a wise and great gift for your kids or closed ones if you invest some amount in their name in a good investment plan on the auspicious occasion of festival. Spending money during festivals is not the problem. It’s an emotional issue. If we truly focus on planning our expenditures our budget will always fall in line with our planning and our festivals will become more joyous. Keep saving, keep investing and have a prosperous life ahead!

Many investors, especially the small investors and beginners, are not aware of the basics of investment. Some of them are attracted by advertisement campaigns which do not provide adequate information about the terms & conditions and risk factors. Some investors are just following their friends or colleagues to invest in the market without understanding their personal financial condition & goals. One size doesn’t fit all. Every individual must assess his/her personal financial position with regards to income, expenses & financial goals. One must understand the risk-return profiles of various investment products available in the market and make well-defined financial goals. One must understand the risk element involved before taking any investment decisions. A large number of investors are unaware of the precautions they should take while investing Many are not familiar with the market mechanisms and practices. Wrong investment decisions without understanding the risk factors can lead to huge financial losses. Investing well has a secret formula – having the right information, planning and making good choices. It is a good choice to consult a financial advisor to take well informed investment decisions. A financial advisor possesses adequate knowledge and expertise to understand the market scenario and suggest investment options as per specific requirements of an individual.

Saving & Investing are important strategies to manage your finances and grow wealth. Both are required to maintain a comfortable financial future and achieve your short-term & long-term financial goals. One needs to understand the difference between saving & investing and find the right balance which depends on your current financial position, short-term & long-term goals. Saving is the excess of your income after meeting out your expenses. The amount lies in savings account with a bank or as extra cash in hand. The money in your bank account is very safe with no risk and earns a small rate of interest around 3-4%. This also provides high liquidity. Since the returns are low, generally this doesn’t take care of inflation and will lose purchasing power over a period of time. Saving is ideal for your short-term goals like meeting out regular expenses or keep money for some emergency situation. Saving is low-risk option but it gives low returns over the long run. This money can be invested for meeting long term goals. Various instruments are available like fixed deposits, stock market, bonds, gold, real-estate, ETFs, mutual funds etc. While some investments may rise or fall in value over time, goal-based investments would earn a lot more than the savings. Savings rarely beat the inflation rate; investments can. If you don’t need money for a long period of time and can take the risk, investing will yield higher returns. When we save, we keep aside money – sitting idle; when we invest, we put that money to work.