The Best Ways To Save Money In India
A penny saved is a penny earned - this common is especially relevant today brands are continuously giving cashback and discounts. India is a huge market due to its population and multiple brands have launched here. Due to the stiff competition, most of them hold sales at least twice a year.
E-commerce websites generally give cashback as that will make sure the customer purchases something else in the future. As a consumer, it is easy to fall for these lucrative offers and buy things that you WANT rather than NEED. It’s perfectly fine to indulge once in a while but before spending money, you should ensure that your savings in place.
When you make your saving plans, see that at least 50% of your salary is invested. The rest should be spent on groceries, utility bills, and entrainment. If you live in India, below are the best ways to save money.
With fixed deposits, you get an assured rate of interest as the returns are not dependent on the stock market. The longer you keep the money, the higher the amount of interest you’ll earn. On average, most banks in India offer 7% interest per annum. Senior citizens (over 60 years) get an additional 0.3 to 0.5%
If you have the tendency to blow up your salary as soon as it is credited to your account, opt for RDs instead of FDs. While the rate of interest is similar, over here, you need to invest every month on the same day. Try and keep that day close to when you receive your salary so that the money is debited much before you can spend it.
SIP stands for Systematic Investment Plan in which you have to invest a fixed amount every month. The returns are known to be higher than banks but since they are related to mutual funds, there’s a bit of risk involved.
Tip: If you want to make money through this mode of investment, do not remove it for at least 3 years. The interest rates can even go up to 25%, which is excellent for any long term investment.
This is for those who have a large amount of money to invest and can wait for decades to see it grow. Real estate prices have shot up globally and in India, it is terribly expensive to purchase a house in most metropolitan cities. So, what’s the best part of investing in a house? Rent. Yes, if you buy a property, do rent it out as that ensures a fixed monthly income.
Indians love the yellow metal and have been using it as a mode making money since ages. All you need to do is buy some gold when the prices drop and sell it when it reaches an all-time high. For this, you have to be up-to-date with the price of gold in India.
While these are the common and good methods of investing money, here are a few tips that will help you save some additional bucks.
Get debit/credit cards that have a lot of offers at offline and online stores. Check their reward program too.
Try to order food online as you’ll often get a discount. Most of these apps have coupon codes that will save you money.
Check your mobile tariff plan often as carrier keep introducing new ones. If you are on an old plan, change it immediately.
If possible, try and watch movies on a weekday as the cost of tickets is cheaper by almost 50%.
Do not keep more than Rs. 50,000 in your bank account if there are no immediate expenses. The rate of interest on savings accounts is very low, so it’s better to invest that money elsewhere.
To get a tax refund, opt for an ELSS (Equity-linked Savings Scheme). You can save up to Rs. 1,50,000 in it annually.
Try and cut down on your living expenses by using public transport, carpool, not leaving electronic gadgets on, eating out less and so on.
If you receive any extra money through bonuses or freelance work, invest it immediately.
Save on subscriptions that you don’t use often. You can also read news online instead of paying for the newspaper.
Also read - 7 Financial Tips Everyone Should Know