2023 has arrived, and making a New Year resolution to save money is a great way to start the year off on the right financial footing. Setting a goal to save a certain amount of money each month or year can help you build a solid financial foundation and reach your long-term financial goals. By making a commitment to save money, you can take control of your finances and build a brighter financial future for yourself and your family.
It can be challenging to cultivate financial discipline, especially in today’s consumer-driven society where it’s easy to overspend and accumulate debt. Here are some tips to help you promote financial discipline in your life:
# Make a budget:
A budget is a tool that helps you plan how you will spend and save your money. By creating a budget, you can see exactly where your money is going and identify areas where you may be overspending. There are different ways to make a budget, but one simple method is to track your income and expenses over a period of time and then allocate your money to different categories, such as housing, utilities, food, and entertainment.
# Cut unnecessary expenses:
Once you have a budget in place, it’s important to look for ways to cut unnecessary expenses. This could include canceling subscription services you don’t use, cutting back on eating out or expensive entertainment, or shopping around for the best deals on groceries and other household items.
# Save money:
Financial discipline also involves setting aside money for the future. Start by setting up a savings account and contribute a portion of your income to it each month. Consider setting up automatic transfers to make saving easier. Make sure to also set aside money for emergencies, such as unexpected medical bills or car repairs.
These tips can help any young professional starting out in their career to save aside a tidy sum of money for later in their lives. One of the best ways to dive headfirst into the habit of saving is to make use of savings instruments, such as PPF, NPS, SIP, and savings investment plans.
PPF:
A Public Provident Fund is a safe and secure investment option, offered by the Government of India. The fixed rate of return for PPF investments is currently 7.1% per annum, and it has tax benefits under Section 80C of the Income Tax Act.
NPS:
The National Pension Scheme offered by the Government of India is another investment option that comes with tax benefits. In addition to providing a regular pension after retirement, it offers a variety of investment options, including equity, debt, and government securities, allowing investors more flexibility.
SIP:
Systematic Investment Plans allow investors to start investing with a small amount, which can gradually grow to a large one over time. By investing a fixed amount at regular intervals, they offer the convenience of investing without the hassle of having to time the market.
Savings Insurance Plan:
A savings insurance plan is a financial product that combines the features of a savings account and an insurance policy. It comes with guaranteed returns on the saving portion of your investment, along with additional benefits such as accidental death coverage, hospitalization benefits, and tax benefits.
A sound savings insurance plan of this nature is HDFC Life Sanchay FMP. These Fixed Maturity Plans (FMPs) are debt-oriented close-ended mutual fund schemes having a defined maturity profile. Some features of Sanchay FMPs include:
They offer the potential for higher returns than a savings account or fixed deposit, as they invest in a variety of debt instruments that may offer higher yields.
They offer the convenience of investing in a diversified portfolio of fixed income securities through a single investment.
They offer a fixed investment period, which allows the investor to plan their investment horizon and manage their liquidity needs.
They may offer tax benefits under section 80C of the Income Tax Act for investments with a maturity of more than 3 years.
By following these tips and practising financial discipline, you can take control of your finances and work towards a more secure financial future. Remember to be patient and consistent, as building financial discipline takes time and effort. However, the rewards of being financially disciplined are well worth the effort. With a sound portfolio of plans that includes a prudent plan like HDFC Life Sanchay FMP, you are all set to greet 2023 with a smile!
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