Four Things to know for building your financial reserves in 2019

Building financial should be on top of everyone’s financial goal sheet every year. Indians are natural savers as an upbringing. But with changing time people are getting more of spender than a saver. For the changing time new avenues of investment and saving need to be explored and we need to be nudged in the right direction to choose the correct saving options to increase our financial reserve this year    .

Start saving:

Maintain a tight budget and control unnecessary expenses. The way one looks at expenses and savings also needs to change. Those who are saving less have to change the way they calculate their savings potential. Instead of treating income minus expenses as savings, they need to put savings first and spend only what remains. Keeping money aside as soon as your salary arrives should be an automatic step.

Increase savings:

If you continue saving the same amount for years to come, given the inflation rate, you may not be saving much. You need to gradually increase the amount of money you are saving. By increasing the quantum of investments annually, one can reach a goal faster or generate a bigger corpus. Don’t treat bonus amounts as a way to blow off steam. You can add that to your savings and increase it annually.

Invest wisely:

The next step after you have decided to save is to make investment choices to help your increase your wealth. Overcome your aversion for risk and look for avenues that can help you channelize your savings. Don’t expect high but moderate returns and be smart about investment choices. ULIPs, Mutual funds, stocks and bonds are some of the smart options to build financial assets.

Divert funds:

Don’t put all your eggs in one basket. Diversion and segregation of investments for specific goals encourages the investor to save more and also prevents him from dipping into the corpus prematurely. Setting up an emergency fund is another way to keep investments safe. In case of a financial emergency, the investor can use the corpus to tide over the short-term crisis.

HDFC Life offers various saving and investment schemes that allow your funds to grow while covering your financial goals at all times.

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