Online Finance Solution and Tips for all

Tag: Money saving

  • How to raise your monthly savings by using Fixed Deposit?

    How to raise your monthly savings by using Fixed Deposit?

    It is really essential for every earning individual to keep a portion of their monthly income, be it a retirement portfolio or future financial obligations. In order to address such situations conveniently, everyone has to save some money for themselves. It will help not only in building substantial amounts over time, however it also inculcates the habit of disciplined savings as an individual.

    A systematic investment plan is offered in the Indian financial market with several options to facilitate the same. But, since this is related to the market-dependent instrument, the risk associated with it is much higher. And losing out on accumulated amounts will be also higher. Thus, to maximize the profit gained in a safer environment, it is always best to raise your monthly savings by investing in a Fixed Deposit.

    Why Fixed Deposit?

    Fixed deposits are one of the most popular saving tools for individuals of all walks of life. Especially, amid the high market value and the present economic downturn, investing in fixed deposits help you to protect your hard earned money and multiply it more.

    These deposits enable you to plan your investments according to the goals, so that you can multiply your savings with high safety and flexible tenure plans. The choice is given to you to fix the deposit tenure and also the frequency of the interest you will receive in return which will be paid out to you at the end of the tenure. In addition, you can use the fixed deposit calculator to find out the returns you will get in that current plan in which you’re opting for.  It will thus help you to calculate the maturity amount in the fixed deposit, before starting to invest your money in it.

    Therefore, the fixed deposit is suitable for all investors, regardless of any risks to their money. But, since the deposit needs a lump sum of amount, investors who are willing to open the account have to accumulate the money by saving it regularly until it reaches a solid figure. Financial institutions have their own eligibility criteria for investors based on the money they want to invest in. And it may not be suitable for individuals who have started their job roles as they may not have the essential amount of money to open a fixed deposit account and to meet a sizable monetary obligation, it will take longer time compared to other individuals who are continuously for years. 

    Hence, systematic plans are designed by the financial institutions like ShriramCity Finance to meet the fixed deposit requirements for those kinds of customers. It is designed as a quick savings tool in which an individual can pay the monthly deposits into an account of the fixed deposits. These deposits are considered, calculated individually and earned at the rate of interest prevailing on that date. At the same time, each deposit will mature individually like the other kind of deposits.

    Investors who are willing to accumulate their savings through the systematic plans can make use of the calculators available in the company’s website as well. Individuals can use this tool to assess the interest rates before depositing their money and it will also aid them to deposit with a perfect strategy as per their financial situation.

    How to systemize your Fixed Deposit plans

    Let us discuss some points that can differentiate the systematic plans form the other fixed deposit schemes or saving tools offered monthly in the Indian Financial market:

    Low Deposit Amount

    Any individual is eligible to start their own Systematic Deposit plans starting from a minimum amount of Rs.5000, it is the common amount fix by the financiers. Nevertheless, it also reduces the burden of saving a lump sum amount of money and it thus gives the pleasure of creating the wealth over time required to invest in a fixed deposit.

    Ranging from 6 to 48 months for a tenor and from 12 months – 60 months,  the monthly deposits for an individual has a large number of varieties in which they can avail the benefit of flexibility in the systematic plans. They can also choose the number of deposits depending on their short or long-term financial obligations.

    Assured Earnings

    The interest for each deposit earned is based on the prevalent rate on the respective date. However, unlike in a systematic investment plan, interest rates of each deposit accrues will remain constant throughout the maturity period. The rate of interest in return fluctuates with regards to the market conditions and therefore, it will not pose any uncertainty of earning for the respective investor.

    Ease of Depositing

    Systematic Deposit Plan can be made through an account payee cheque, on the first payments. And from there, the subsequent payments will be automatically debited by the concerned financial institution from the account of the depositor.  Thus, investors will not need to assume the struggle of payments on a periodic basis. At the same time, the investors can enjoy the convenience created by the systematized wealth accumulation and thus lead a stress-free life.

    Depositors who are also the account holders have the liberty to choose and withdraw their accumulated amount at the premature time as well. And those withdrawals are subjected to the regulations of the Reserve Bank of India (RBI).

    Simple Documentation

    An investor only needs to submit his/her KYC documents in order to open an FD account through Systematic Deposit Plan. The documents should be submitted alongside the cheque for the first payment with a NACH mandate.

    Loan Against Fixed Deposit

    Depositors can also opt for a loan against their saved fixed deposit money if they are in need of any immediate financial obligation, as an alternative to premature withdrawal. This benefit allows the individuals to make sure that their Fixed deposit account will continue to remain by earning the interest amounts. Therefore, the Systematic Deposit Plan stands as a challenging option for investors, who want to save a lump sum amount for their future without straining too much by observing their current financial status. 

    While comparing a systematic investment plan with the other plans, it is clearly evident that there is a guaranteed assured return even if there is a market crash.

  • Some mental tricks which helps in Money Saving

    Some mental tricks which helps in Money Saving

    The biggest barrier between saving and spending is probably comfort. It is difficult to reject something that we can enjoy at the moment because of something we will obtain in the distant future.

    Saving money is not a simple task: it is difficult to think in the long term to resist the temptations of the moment. However, fortunately we can trick our brain to do so. We bring you the 10 best mental tricks to save more and spend less.

    Let’s see what some of the best are:

    • Do not give up things, enjoy them more: Instead of thinking that you will have to give up eating at your favorite restaurant every week, think about how much you will enjoy it when you do it once a month. Psychologically it will be much easier to think that you are not giving up something, but enjoying it more.
    • The brake or accelerator method: A popular method is to imagine yourself inside a vehicle every time you make a financial decision: depending on what you decide you will be stepping on the brake or the accelerator. It depends on you how quickly you want to reach your destination.
    • Try the technique of the “unknown”: Every time you go to buy something imagine that a stranger gives you the option to choose between the product and the money that is worth that product. What would you choose? If you would opt for the money, you already have it in your pocket.
    • Impose the rule of 3 days: The technique consists of always giving you a few days to think between the moment you set out to buy a product, and the time to do it. Maybe during that period you realize that it was not so necessary.
    • Involve another person in your savings plan: Have a savings partner. Both you must share your financial goals and the plan to achieve them. Once a week you will meet to tell your progress. If you feel the support – and pressure – of another person you will be more likely to keep your word.
    • Try the technique of false rewards: This technique may be somewhat peculiar to you, but there are people to whom it works. Every time you buy something, imagine someone telling you that they will give you 3 euros if you do not. The mere fact of stopping to think can make you realize that you do not need to buy it as much as you think.
    • Put a photo in your portfolio that reminds you of your financial goal: Visual images have more impact on our brain. Keep a photo that reminds you of your goal in the portfolio, every time you go to pay something you will see it and ask yourself: what is more worth it?
    • Cover up your credit card: Put a physical barrier between you and your card by wrapping it. You can draw pictures of your goal or write down notes to remind you that it is only for emergency use.
    • Use the emergency test when you go shopping: To avoid wasting money on clothes before buying a garment, ask yourself if you would put it right out of the dressing room. If the answer is negative, it may not make you so excited.
    • Write down your savings goals: Studies show that people who write down their goals are more likely to achieve them. Write down your financial goals and take them with you when you feel tempted to spend.

    Other than these mental tricks there are some wise practices which while implemented in our daily life help in money saving:

    1. Write a list of all the things you want to fulfill. Dreams, goals and specific objectives such as paying your credit cards, a trip to Europe, buying the new Smartphone or a new computer, paying the initial of a house, etc.
    1. Make sure your goals are realistic and prioritize each of your savings goals. This helps reduce frustrations and escalate aspirations.
    1. Once the goals and the priority of each of them have been established over time, determine the amount of money you need for each one.
    2. Now make a list of all your monthly and annual expenses. If you already work with a budget, it will be easier to know how much money you have.
    3. After having your accounts clear, decide an amount to save money and for how long you will have to save that amount to achieve each of your objectives.
    4. Set a fixed monthly fee to save. The minimum recommended is to save 10% per month of your income. You can add up all the expenses to identify how much you spend in this category and start saving it instead of wasting money on small and unnecessary purchases.
    5. Consider saving money as a fixed monthly obligation, which is as important as the payment of basic services or rent. In this way you convert savings into a commitment and not an option, guaranteeing the fulfillment of your goals.
    6. One of the best tricks to save is to not use these funds for purposes other than the one that was established. Do not stop fulfilling any of your monthly payments and take care of the money you have saved. The best way to achieve this is with a budget.
    1. Finally, choose a means of formal savings. A savings account in the bank is the best option, this not only gives you the opportunity to save safely, but you can also get a return on the money saved with interest.

    Conclusion: Most people believe that money should be saved only when “left over”; They believe that they should wait to earn more money, get out of debt or get a better job to start saving, but to acquire the habit of saving, you just need to organize and have clear goals.