Save your Savings!

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We have all heard ‘Mutual Funds – Sahi Hai!’. As the face of financial management changes, more and more professionals are moving towards diversifying their investments. Prashant Desai explains how we can ensure we are getting the most out of our savings – 

  • Why a basic savings account/ FD isn’t the only option – 

The interest you’re receiving when you leave your monthly savings in FDs or Savings accounts is falling as it’s risk free. SBI reduced interest rates to only 2.9% and it’s taxable!

  • The government doesn’t want you to save!

For greater GDP growth (which is every government’s focus), consumption must increase. To increase consumption, people must spend more. So, many countries have inculcated a capitalistic culture to imbibe the habit of constant expenditure amongst its people. While the USA and Europe embraced this, India is relatively conservative – we constantly save for a rainy day. 

  • Your attitude dictates your finances, not your money

As an investor, you have 4 options – 

  1. Remain risk averse

  2. Take higher risk

  3. Save more, spend less

  4. Build an asset / long term investment like property

Each of these attitudes can be applied depending on your circumstances and capability!

  1. Investments that age well

People who are 40+ may not yet be open to risk, not only did they grow up in a high inflation, high interest rate environment, they have also been taught to save more. But with today’s youth growing up in a capitalistic environment where accessibility and entrepreneurship flourish, can afford to take risks and enjoy the fruits of their labour just as quickly!

If you’d like to #BounceBack from careless saving, we have a comprehensive guide for you! Read Frankly Speaking Finance: Save your Savings by Prashant Desai for free on 3/9/21 for free!

 

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