Practice money management intelligently

There are lots of methods available to get full value to your money. I mean, if your money sitting ideally, you can use the same to get interest for the time being as well as utilize your money in a systematic and disciplined way. Below are some intelligent money managementmethods for your attention and practice. It is not limited too but, this could be helpful to you to identify such methods when you dealing with various components. Read some useful tips below:

When dealing with mutual fund SIP (Systematic Investment Plan)

Systematic Investment Plan is the thumb rule and the disciplined method to invest with mutual funds. This is the recommended path to get maximum benefit as well as security to your money. It is not recommended to put bulk amount in mutual fund at a single time. Suppose you have bulk amount and don’t want to put all those money to mutual fund in a single shot. But, you required good returns, little more from bank interest or any other, till the money going to mutual fund as a SIP way. Try this method.

Put all your money to a Liquid fund, this is capital guaranteed and interest is higher than bank rates, and start a STP (Systematic Transfer Plan) to your interested mutual fundin a monthly or quarterly basis as you like. Through this method, the amount there in the liquid fund will get decent interest as well as the money will systematically transfer to your targeted mutual fund just like how SIP works. Double benefit.

When dealing with Money Back Insurance products :

Money back insurance product assuring return of a percentage of amount after a period of term. Most money back policies will pay you a percentage after 5th, 10th and 15th years, if that is a 20 year term policy. Try this method:

When getting money after the period of term, say after 5 years, put it in a separate savings account. Use this money to pay some of the next premiums. In most case, this amount will be enough to pay next two to three premiums. This will make your life relax to not arranging money to pay next immediate premiums. Pay the next immediate premiums with the money what they given to you. This is a better idea.

When dealing with Post Office Savings Schemes (POMIS etc…)

Post office saving scheme intended to give you a monthly income depends on the amount you are putting. If the amount is small and you don’t want that monthly, then try this method to get double income:

Open POMIS and put your amount to that. Same way, open a recurring deposit with the same post office and inform them to add the monthly amount to that regularly. This will give you the benefit from the POMIS as well as handsome interest to the monthly amount you are adding to the recurring deposit. As all of you aware, post office schemes have highest interest rates compare with any banks. This is a method an average person, if he has very low risk profile, can do to add more value to his/her money. How do you feel with this method?

There are lots of ideas to add extra value to your money, available today. You are required to research for this and you will get all the ideas like this to deal with any products or investment instruments.

Question: Do you think buying shares in each month with equal amount by not considering the market high and low is profitable? If yes, why?

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