what are the various ways to save money? Hello Ilites, This is the thread to post the various possible ways to save the money which we earned/earning for future. like, RD, FD, MF etc., What are the merits/demerits in that... Will that endup in huge tax pay... if in emergency ; it might cost you prematural withdrawal Please throw some light on this personal financial matter... I like to get your idea on this to plan for my own and this might help many people like me in this IL Family.
Re: what are the various ways to save money? Hi Born2vin, Investing the money so that it multiplies may be a good option . There are so many areas including real estate, shares, stocks, mutual funds. We need to have a good knowledge on this before investment.
Re: what are the various ways to save money? born2vin, It is always better keep all your investments in diversified interests too. i also would say, keep atleast 3 months of your net take home, in liquid cash in your savings account. though the interest is less, you have instant liquidity. the amount to be at home can differ depending on the number of dependents and age. suppose you are going in for a fd, say you want to invest 2 lacs. i would suggest do it as 1 + 1 or 1.5 + 5. that way you have the option of only breaking 1 fd in case of emergency. the same goes for postal saving or ppf, or policies.
Re: what are the various ways to save money? Shanthi... your suggestion of breaking the FD is very good. I do follow the same and even its better if we split the RD I suppsoe because if suppose you save Rs.10,000 per month on RD,at the end you may get taxed but if its split as Rs5,000 and 5,000 I suppose. One more thing.. nowadays there are lots of sms ads about investing in real estate on a monthly basis.. like you pay 5k per month for the next 3 years and at the end the plot will be urs.. is this just a new way of cheating or does this truely work? Any ideas?
Re: what are the various ways to save money? lalitha, there are lot of frauds. there were installments scheme at the peak in the early 90's, and then by 95 there were too many people who lost their hard earned money. right now i too see a lot of sms coming our way , along with pamphlets. you can do it, if you know the person, or know that the company is sound and is reliable, otherwise do not go in to these schemes. the way it is projected, it does not even come close to the interest rates that are feasible for the seller.
Re: what are the various ways to save money? Hi Srishakthi , thanks for you post and suggestions. hi Shanthi, that'sa nice idea to break the fd or rd and keep some liquid case for emergencies. as lalitha said, i have this query in my mind for long regarding taxation on our investment interest... if we have fd less than 5 year i think we have to pay for the interest amount we get from that... i am not clear on this... on all the returns from interest are taxable or non-taxable... can some one throw light on this and give some suggestion....
Re: what are the various ways to save money? Hi, There is a limit to what you can save on tax. You kids school fees, life insurance premiums and tax saver schemes come under section 80C of income tax. The maximum limit for this is 1 lakh. If you want to save tax on investments beyond 1lakh, section 80G, you can get exemption on pension schemes. Also the interest paid on home loan is exempted from tax. I think limit is about 1.5lak per annum. I would suggest instead of concentrating on only tax saving schemes, invest where you can get higher returns. Also as Shanti suggested, diversify your investments and always keep some investments which you can easily liquify in case of emergencies. -Lakshmi
Re: what are the various ways to save money? Hi born2vin, Nice thread. Good to discuss & know different options. As ILites hv already given good suggestions too. I would add you can invest in VPF. It is Provident Fund can be opened some of the Banks. Interest rates are usually good & would get benefit of tax deduction. Hope this helps. take care veen
HI, friends,ca you give any ideas for saving money which my hubby is giving for my home expenses.thanks in advance...
Hello Dear Pls download this budget planner...then see where are the expenses high/low and where you can reduce it.. http://www.indusladies.com/forums/money-matters/16761-download-this-budget-planner.html http://www.indusladies.com/forums/money-matters/1506-how-keep-track-household-expenses.html also in this money forum, there are several threads on saving money/how to save etc...browse through..good luck
