New Delhi, Nov 26: We all want to double our money, right? But we also want it without any risk. Doubling your money is a realistic goal and if one takes systematic approach then the payoffs will be bigger.
Since each individual's finances and goals are personal, it's good to know the rules of thumb that can help guide you towards the path of financial prosperity. Here we look at some tips that could be helpful in devising a broad strategy for great financial returns.
Don't ignore the power of small savings
Do not underestimate the power of small savings. If you think it's not worth to save few hundred of rupees every week, take a look at how quickly it can add up.
Amount saved each week Total at the end of one month Total at the end of one year
Rs 1000 Rs 4000 Rs 48,000
Rs 2000 Rs 8000 Rs 96,000
Rs 3000 Rs 12,000 Rs 144,000
You can do much better. Remember, the longer you save, the more it grows in value aided by compound interest. An extra Rs 4,000 in your pocket every month isn't a bad idea and you can easily do it by changing the way you spend. There are literally hundreds of expenses which you can shave and save. The reality is once you get into the swing of things you'll find numerous ways to save money on just about everything you buy. And those savings will add up big time.
Cut your monthly budget drastically
It is important to cut your monthly budget in an effort to build your savings. Make dining rare, take your lunch to work instead of eating out, drop the Set Top box TV, take metro instead of your own car, shop second hand, switch off lights, buy items on discounts etc. Cutting back on unneeded expenses may be a tough call for many since many of us have been accustomed to spend much more than we actually need. But when there's not much coming in, you have to be completely aware about what you do have. Budgeting will give you a clear idea exactly what you earn, and how you're spending it. Here are some ways which you can implement immediately to cut your monthly budget drastically.
* If you can't pay in cash, don't buy it
* Give up smoking (or at least cut back)
* Eat out less.
* Bring your lunch to work
* Look for items at discount
* Plan out your holiday spending budget in advance, then stick to it
* Give fewer gifts, and be more creative about them
* Take public transportation
* Instead of visiting malls and spending there, seek out free activities for you and your kids
* Rent a movie instead of going to the theater.
* Vacation at home
* Buy your next car, don't lease
* Buy a used car rather than a new car
* Cut down on alcohol
* Cancel your gym membership and walk to work instead