It is generally suggested that as you get your income, you should consider
- Income – Savings = Expenses rather than Income – Expenses = Savings
In the first option you decide what amount you want to save from your income and spend the remaining, here you are in control of your savings.
Whereas in the second option, you do all the necessary & discretionary expenses and save whatever is left.
If you are planning to build a financial corpus based on savings than the probability of success via first option is way higher, this is an integral part of one’s financial discipline.
Just savings are not enough, the value of Rupee get eroded by inflation, therefore it is important that you invest your savings at the rate that beats inflation. Systematic Investment Plan (SIPs) are a powerful solution for building saving & investment habits. In SIPs you invest systematically at regular intervals and build your desired financial corpus.
We have covered in details about all the aspects of mutual fund investments, If you are a beginner you can start with indexing or you can Consult us, we will create a personalized investment plan for you based on your investment objective.