How can I save money?
Well, this seems to be the most crucial, common, yet, most important question that most of us are asking today. Though it is not difficult to save money, the most decisive part is getting started. More often than not, people are not able to zero into the appropriate and effective plan to save money. For such dilemmas, SIPs or Systematic Investment Plans come across as best friends. They are considered to be one of the best routes to saving money and creating an emergency cash-store for immediate needs. It is an investment option where you can put an amount every month and earn incentives on your investments while saving the invested amount for later requirements. SIPs are also in form of mutual funds and the lowest mutual fund investment that you can make can be as low as rupees 500, making it one of the most convenient methods of saving.
Now let us try and answer your question; “how can I save money?”
Once you have decided a goal for which you need to save money, you can ascertain your savings through these factors before putting your money in best equity mutual funds:
SIP investments are the best equity mutual funds that help you save tax. These investments are liable for deductions under section 80C of the Income Tax Act, making them the most convenient instrument to save money while saving on tax too. Average saving that you can make through tax deduction against SIPs can be something from 15,000 to 45,000, which is not bad at all. It comes in handy for any personal need you may have after a certain number of years.
ELSS funds investments or Equity Linked Saving Schemes have proven themselves to be the best tools when it comes to saving for your kids’ education. They come with a lock-in period and you can get lump sum benefits after the tenure of a few years. Thus, you get a ready amount when you need to use it for higher education or study abroad option.
One of the most important components of your financial planning is your retirement savings. Mutual Funds India offer a lot of retirement plans where you can start with a small initial amount and make a substantial funds corpus to survive post-retirement. These options come in the form of National Pension Schemes. One of the most talked about growth assets that you need to check out.
If you earn INR 30,000 per month at the age of 25 and invest INR 2500 every month in a SIP and keep increasing it by 10% every year, your retirement savings would look something like this:
With a balanced return of 12% per annum, by the age of 60, you would have INR 4.12 crores
With a balanced return of 15% per annum, by the age of 60, you would have INR 7.2 crores
Do you have any more questions?
If you have any more queries related to mutual fund investments or if you are still asking the question, “how should I save money”; then we are just a call or a mail away. Let us discuss your financial goals and offer you some effective SIPs.
Save money, live a happy, healthy and fulfilling life!