Managing Personal Finances – Know The Right Time To Start Saving

You save yourself or you remain unsaved.

Managing Personal Finances - Know The Right Time To Start Saving
Managing Personal Finances - Know The Right Time To Start Saving
Photo Credit: dolgachov / Bigstockphoto
Kumar Sunil

Kumar Sunil

Dreamer & Enthusiast

Creative. One word says it all for Sunil. A engineer, an enthusiastic and conscientious Information Technology consultant by profession, Sunil shares a special interest with entrepreneurship and lifestyle.


  1. Saving a small amount soon builds up to a large amount.
  2. Save money and money will save you.
  3. It is not about how much you made, but saved.

Really? looking out to know the best time to start saving? Of course the answer is as soon as you get your first pay check!

Don’t tell me you were waiting to start saving when you start a family. You really don’t want to start saving just when your baby has arrived, right! Managing personal finances plays a vital role in life and learning about it at an early stage is absolutely the best thing.

In order to have a successful and secured life, there needs to be a full-proof financial plan. A plan where you have mapped out all your goals strategically so that taking major life decisions can become easy along the way.

Along with a long term financial plan, there needs to be a short term or say monthly financial plan as well. It’s not at all a rocket science, understand your money flow, understand what your lifestyle is and at what all places your money goes in the month.

Calculate all your monthly expenditures like housing, groceries, commuting, leisure, tax, money for emergencies etc., this will help you make a saving plan according to your cash flow. Ideally, you should be able to save 20% of your monthly income.

Let’s say your monthly income is 25K in INR, then you should be able to save 5K each month. Isn’t this great? money planning is always great.

Whether it’s about taking vacations, buying a car or even a house; everything circles around one thing and that is how you are going to save the money, rather how you are going to invest your money! Be a smart investor.

Stock Market

Money earns money. There are ways through which you can make some more money from your saved money. If you are interested in stock market, just go for it and invest your money in some stocks.

Money Lending

You can also lend your money to somebody else in need for a particular time period and have it back with an interest. Investing is not gambling, you just need to know some smart and secure ways.

Public Provident Fund

Looking out for some long term savings plan and that too tax free? PPF is at your rescue. you can open your PPF account in the bank and put your money in it for 15 years.

You can always get an extension time frame of 5 years but can withdraw money from your account only after the 6th year. In all an amazing option with an interest rate as high as 8-9%

Mutual Fund

You can start a mutual fund with as low as 500 bucks and if you are into stock market, you can directly invest from your mutual fund.

Real-estate Industry

This is one extra-ordinary option especially for people living in a developing country like India. Residential, commercial, retail, hospitality, the options are innumerable and the returns are impeccable. You just need an intelligent consultant. You can keep the property for some years till the rates are right to sell it back or you can always keep it on rent. This will create an extra income for your family.

Invest in Gold

Gold deposit scheme, gold ETF, gold Bar, gold mutual fund etc. there are so many ways out there for gold investment. It is one of the most traditional ways of investing your money.

So, now you know when to save and what to do with your money. Remember, it’s not about how much money you make, it’s about how much you save!