Set clear saving goals Why: You would not be motivated to save without a goal to save for. Saving becomes easy with clear goals in mind. Do: Write down your short-term, medium-term and long-term goals separately. This helps you allocate resources efficiently. Save regularly Why: Saving once in a while may not secure your financial future. A regular saving habit could make a significant difference to long-term goals. Do: Start your Systematic Investment Plan (SIP). This encourages you to save and invest a pre-determined amount every month. Create a budget Why: A budget gives you a clear idea of your income and expenses – not just current but also potential. This, in turn, helps you prioritise your expenses. You thus become a cautious spender. Do: Make the most of technology – use online budgeting tools or mobile applications for creating budgets. Record your spending Why: Even your ordinary day-to-day expenses can put you in financial trouble over time. Once you start tracking these expenses, you understand your spending behaviour and you can avoid unnecessary expenses if any. Do: Record ordinary as well as one-time expenses such as ordering lunch at work or taking a cab instead of walking. Save for emergencies Why: Emergencies can wipe off your savings. You must be proactive and save for uncertainties. If you save smartly today, you will end up saving a lot more in the future. Do: Keep aside a small part of your monthly income for emergencies; invest the same for building your fund faster. *This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information 5 TIPS ON SAVINGS THAT YOU MUST NOT MISS This barter is in your own best interest. “Save money and money will save you.” – A famous Jamaican proverb TIP 1 TIP 2 TIP 3 TIP 4 TIP 5 For more details, follow us on Twitter @utimutualfund; Email queries or suggestions: [email protected] Please mention ‘Swatantra in HT’ in subject line. For more such financial advice, head to our website: http://www.utiswatantra.com Mutual Fund investments are subject to market risks, read all scheme related documents carefully. In the next edition: The best gift that you can give your child is a financially secure life. In the upcoming edition, let's look at interesting ways of making your child financially independent. For more on financial independence for children, tune into UTI Swatantra Facebook Live on 14th November, 2018 from 5:00 pm onwards and catch the live show on 'Let your children and their SIPs grow together'. Steps to download and scan a QR code: 1) Download QR code app on your phone. 2) Run app and scan the QR code. 3) Your smartphone reads the code & navigates to the destination. Scan this QR code to calculate the amount you need to invest to achieve all the milestones you have set for yourself. Have questions on Mutual Funds? Scan this QR code to send them to us. Scan this QR code to register for an event happening in your city. It is never too late to be financially disciplined – Start today! SIP HELPS YOU SAVE AND INVEST REGULARLY! ` ` The bottom line Just because you believe that money from different sources/ for different uses are non-fungible or cannot be interchanged, you end up making decisions that are not financially sound. It is a good thing to save regularly and systematically. However, you must not let the mental accounting bias for saving money affect your financial well-being. Swatantra Kumar Explains: Mental accounting *This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information On the other hand, if you are to spend your hard-earned money – your salary, you will be far more cautious. If you are to spend the money that some relative gave you as a gift, you will spend it freely on all your favourite things. Say, you are saving money regularly for buying a phone, and at the same time, you have an outstanding credit card bill. But you choose not to dip into these savings for paying off your dues. Simply put, mental accounting is the tendency of people to categorise money into different accounts and treat it differently. This can be based on different criteria such as: The source of money The intended use of money WHAT NEXT? To reap the benefits of investing, you must save first. Let’s look at a few tips that can help you save money easily. Start saving early to start investing early Keeping some portion of your income aside for a rainy day is common. But, putting your money in a Bank account or investing it is better than keeping it under the pillow at home. It will fetch you returns and will be useful when you need it the most. Financial planners often say you should have about 3-6 months of your expenses as savings. QUICK TIP: Invest through regular Systematic Investment Plans (SIPs) in Liquid Funds. Save and invest in tandem When you invest, your money grows. Your savings above your emergency fund, should work to beat inflation and meet your financial goals. Invest regularly to generate returns over the inflation rate. QUICK TIP: For long-term investments to beat inflation and generate wealth, invest in Diversified Equity Mutual Funds (MFs). You can invest as low as `500 Do not be disheartened if you are unable to save enough to invest. You can begin with as low as `500 per month in an SIP. Moreover, step-up SIPs allow you to increase your SIP contribution over time. QUICK TIP: It is only wise to keep increasing your SIP amount as your income increases. Understand Time Value of Money The money that you have today is worth more than the same amount in the future. This is because of its potential earning capacity. The sooner you invest your savings, the more you can accumulate, thanks to the power of compounding. QUICK TIP: Prioritise long-term investments. Do not stop your SIPs. Save Tax with MFs With MFs, you don’t just save for your future, you also save Tax. If you invest in an Equity- Linked Savings Scheme (ELSS), the amount invested up to `1.5 lakh can be deducted from your Taxable income. QUICK TIP: Stay invested in ELSS beyond the lock-in period of three years to meet your long-term financial goals. INVESTING IS THE NEW SAVING! *This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information Today is International Savings Day. It is also called the ‘thrift’ day. It all started in 1924 when the first International Savings Congress was held in Milan, Italy. Since then, a lot of savers have turned into investors. Yet, many fail to realise the importance of savings as the step of investing. MF Tax saving mutual funds is just like any other mutual funds with the added bonus that investments made in them are eligible for Tax benefits under section 80C. Most of the Tax saving mutual funds are ELSS schemes and make investments in equity markets. This type of mutual fund has a lock in period of three years from the date of investment. This means if you start a Systematic Investment Plan in an ELSS, then each of your investments will be locked in for three years from the respective investment date. Investors can exit ELSS by selling it after three years. GURUSPEAK SURESH IFA, Capital Builders A Systematic Investment Plan or SIP is a smart and hassle-free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future. A SIP is a flexible and easy investment plan. Your money is auto- debited from your bank account and invested in a specific mutual fund scheme. You are allocated a certain number of units based on the ongoing market rate (called NAV or net asset value) for the day. HERE’S WHAT THE EXPERT SAID A reader asked us: How do SIPs develop a saving discipline in an investor? EXPERTSPEAK BALAN IFA, Southern Capital How can I save Tax with Mutual Funds? `
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Transcript
Set clear saving goals
Why: You would not be motivated to save without a
goal to save for. Saving becomes easy with clear goals
in mind. Do: Write down your short-term,
medium-term and long-term goals separately. This helps
you allocate resources effi ciently.
Save regularly
Why: Saving once in a while may not secure your
fi nancial future. A regular saving habit could make a signifi cant difference to long-term goals.
Do: Start your Systematic Investment Plan (SIP). This encourages you to save and
invest a pre-determined amount every month.
Create a budget
Why: A budget gives you a clear idea of your income and expenses – not just current but
also potential. This, in turn, helps you prioritise your expenses. You thus become a cautious spender.Do: Make the most of technology
– use online budgeting tools or mobile applications for
creating budgets.
Record your spending
Why: Even your ordinary day-to-day expenses can put you
in fi nancial trouble over time. Once you start tracking these expenses, you understand your spending behaviour and you can avoid unnecessary expenses if any.
Do: Record ordinary as well as one-time expenses such as
ordering lunch at work or taking a cab instead
of walking.
Save for emergencies
Why: Emergencies can wipe off your savings. You must be proactive and save for uncertainties. If you save smartly today, you will end up saving a lot more in the future.
Do: Keep aside a small part of your monthly income for emergencies; invest
the same for building your fund faster.
*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information
5 TIPS ON SAVINGS THAT YOU MUST
NOT MISS
This barter is in your own best interest.
“Save money and money will save you.” – A famous Jamaican proverb
TIP 1
TIP 2
TIP 3
TIP 4
TIP 5
For more details, follow us on Twitter @utimutualfund; Email queries or suggestions: [email protected] Please mention ‘Swatantra in HT’ in subject line.
For more such fi nancial advice, head to our website: http://www.utiswatantra.com Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
In the next edition: The best gift that you can give your child is a fi nancially secure life. In the upcoming edition, let's look at interesting ways of making your child fi nancially independent.
For more on fi nancial independence for children, tune into UTI Swatantra Facebook Live on 14th November, 2018 from 5:00 pm onwards andcatch the live show on 'Let your children and their SIPs grow together'.
Steps to download and scan a QR code:
1) Download QR code app on your phone. 2) Run app and scan the QR code. 3) Your smartphone reads the code & navigates to the
destination.
Scan this QR code to calculate the amount
you need to invest to achieve all the milestones you have set for yourself.
Have questions on Mutual Funds? Scan this QR code
to send them to us.
Scan this QR code to register for an event
happening in your city.
It is never too late to be
fi nancially disciplined – Start today!
SIP HELPS YOU SAVE AND INVEST REGULARLY!
``
The bottom lineJust because you believe that money from different sources/for different uses are non-fungible or cannot be interchanged, you end up making decisions that are not fi nancially sound.
It is a good thing to save regularly and systematically.
However, you must not let the mental accounting bias for saving money affect your fi nancial well-being.
Swatantra Kumar Explains: Mental accounting
*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information
On the other hand, if you are to spend your hard-earned money –your salary, you will be
far more cautious.
If you are to spend the money that some relative gave you as a gift, you will spend it freely on all your
favourite things.
Say, you are saving money regularly for buying a phone, and at the same time,
you have an outstanding credit card bill.But you choose not to dip into these
savings for paying off your dues.
Simply put, mental accounting is the tendency of people to categorise money into different accounts and treat it differently. This can be based on different criteria such as:
The bottom lineJust because you believe that money from different sources/for different uses are non-fungible or cannot be interchanged, you end up making decisions that are not fi nancially sound.
*This content was created exclusively for UTI Swatantra. Visit
The source of money The intended use of money
WHAT NEXT? To reap the benefi ts of investing, you must save fi rst. Let’s look at a few tips that can help you save money easily.
Start savingearly to start
investing earlyKeeping some portion of your income aside for a rainy
day is common. But, putting your money in a Bank account or investing it is better
than keeping it under the pillow at home. It will fetch you returns and will be useful when you need it the most. Financial planners often say you should have about 3-6 months of your expenses as savings. QUICK TIP: Invest through regular Systematic
Investment Plans (SIPs) in Liquid Funds.
Save and invest in tandem
When you invest, your money grows. Your savings above your emergency fund, should work to beat infl ation and meet your fi nancial goals. Invest regularly to generate returns over the
infl ation rate. QUICK TIP: For long-term
investments to beat infl ation and generate wealth,
invest in Diversifi ed Equity Mutual
Funds (MFs).
You can invest
as low as `500Do not be disheartened if you
are unable to save enough to invest. You can begin with as low as
` 500 per month in an SIP. Moreover, step-up SIPs allow you to increase your
SIP contribution over time. QUICK TIP: It is only wise to keep increasing
your SIP amount as yourincome increases.
Understand Time Value of Money
The money that you have today is worth more than the same amount in the future. This is because of its potential earning capacity. The sooner you invest your savings, the more you can accumulate, thanks to the power of compounding. QUICK TIP: Prioritise long-term investments. Do not stop your SIPs.
Save Tax with MFsWith MFs, you don’t just save for your future, you also save Tax. If you invest in an Equity-Linked Savings Scheme (ELSS), the amount invested up to ` 1.5 lakh can be deducted from your Taxable income.
QUICK TIP: Stay invested in ELSS beyond the lock-in period
of three years to meet your long-term
fi nancial goals.
INVESTING ISTHE NEW SAVING!
*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information
Today is International
Savings Day. It is also called
the ‘thrift’ day. It all started in 1924 when the fi rst International
Savings Congress was held in Milan, Italy. Since then,
a lot of savers have turned into investors. Yet, many fail to realise the importance of
savings as the step of investing.
MF
Tax saving mutual funds is just like any other mutual funds with the added bonus that investments made in them are eligible for Tax benefi ts under section 80C. Most of the Tax saving mutual funds are ELSS schemes and make investments in equity markets. This type of mutual fund has a lock in period of three years from the date of investment. This means if you start a Systematic Investment Plan in an ELSS, then each of your investments will be locked in for three years from the
respective investment date. Investors can exit ELSS by selling it after three years.
GURU SPEAK
SURESHIFA,
Capital Builders
A Systematic Investment Plan or SIP is a smart and hassle-free mode for investing money in mutual funds.
SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future. A SIP is a fl exible and easy investment plan. Your money is auto-debited from your bank account and invested in a specifi c mutual fund scheme. You are allocated a certain number of units based on the ongoing market rate (called NAV or net asset value) for the day.
HERE’S WHAT THE EXPERT SAID
A reader asked us: How do SIPs develop a saving discipline in an investor?
EXPERT SPEAK
BALANIFA, Southern Capital
How can I save Tax with Mutual Funds?
`
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