7 Ways to Save Money While Making Money
Your list of expenses can be never-ending. Expenses can come up suddenly as well. So, it is necessary to save up for both—good times and bad. Look at the saving and investment options available to you. Financial security should be at the top of your list. This will help make your future secure. Are you looking to save your hard-earned money and reap returns on them? Here are seven ways to make this happen.
1. Save Using Fixed Deposits:
The fixed deposits (FDs) offered by banks and non-banking finance companies (NBFCs) are popular options. This is because they are reliable and safe. Here, the principal amount remains safe. Owing to the security aspect, FDs are popular among the salaried class. Institutions offer higher rates of interest on FDs. In comparison, your no-frills savings account offers lower interest rates. So, look at all the FD options available to you. Compare the interest rates and the tenure. Then pick a suitable option to help you reap good returns.
2. Consider Mutual Funds:
Mutual funds are a good investment option. Here, you need not worry about how to manage your money. The fund house pools money along with a large number of other investors. A fund manager handles your investments. This fund manager invests your money in various options like stocks or bonds. The focus is often on diversifying your investment. Such experts help minimise the risk of losing money. Thus, they help increase the value of investment. However, they tend to have higher risk than fixed deposits.
3. Sign Up for A PPF Account:
The Public Provident Fund (PPF) is one of the safest ways to secure your hard-earned money. PPF is a tax-free investment option in India. You open a PPF account in a bank or a post office. The money accumulates compound interest over a period. You can also take a loan on your PPF balance in a crisis. It is a secure and long-term investment option. However, your money remains locked for 15 years. You cannot withdraw your money during this period.
4. Profit from Real Estate:
Buying a property is a task in itself. But real estate can be a good investment option for those with big financial goals. Say, you buy a good property in a prime location. The price is likely to increase. You stand a chance to gain with rentals and resale prices.
5. Pick Post Office Schemes:
Post office schemes are one of the reliable investment options in India. Their returns are regulated by the government. These schemes are well-suited for pensioners and people who need regular income. The interest rate tends to be low. But the risks are low when you invest in a post office scheme.
6. Try Recurring Deposits:
Would it be easier if you could save money every month and earn interest on it? Recurring deposits allow you to save small amounts each month. This can help you save regularly as a habit. Recurring deposits are a safe way to invest. Although taxable, they are a good way to save money on a regular basis. You also get attractive rates on these deposits.
7. Invest in Bonds:
Investing in bonds can help you earn a regular income. Government-regulated bonds are one of the least risky options. They also tend to offer the higher interest rates among all debt instruments. There are other bonds too like inflation-indexed bonds. These help you earn inflation-adjusted returns.
There are many options that can help you save and invest your money. But you must choose a safe and feasible option to reap returns. Plan your savings and investment options. This will help you build a secure financial future.