Personal Finance 2020: Saving money is a difficult task, especially for millennials who don't want to compromise on anything. But without saving, and re-investing it in profitable financial products, one can't expect to become rich.
Personal Finance 2020: Saving money is a difficult task, especially for millennials who don’t want to compromise on anything. But without saving, and re-investing it in profitable financial products, one can’t expect to become rich. To save more, it is important to keep a check on expenses and reduce unnecessary expenditures. In this New Year, you can resolve to save a lot by managing well your expenses. How to do it? Well, Rachit Chawla, Founder and CEO, Finway, suggests that instead of keeping aside money for credit payment, a huge difference in the expenditure behaviour can be made by making the credit payments automatic.
Sharing his New Year wishes for millennials, Chawla told FE Online, “Setting up a constrained spending plan and keeping aside money for credit payments are usually difficult and often ends up landing in pointless expenditures. Nonetheless, if the same gets automatically deducted from the salary account, a huge difference is witnessed in the expenditure behaviour, which is essential for financial growth.”
This above strategy will help the borrower (millennials) to stay away from unnecessary transactions that can later on shadow every month’s obligations towards the debt.
Beware of frauds, save for uncertainties
Chawala also advised millennials to keep a regular check on the automated transactions, as at times there are chances of fraudulent activities taking place without the account holder’s knowledge, and the same doesn’t even get refunded if it’s too late.
For financial security, it is also important to increase the savings to face all financial uncertainties. Chawla said: “Also, taking into consideration the numerous uncertainties, it is always apt to keep the savings loaded up more with funds. Although one needs to consider previous debts and necessary expenses, saving for the pre-payment of obligations will benefit one with some amazing benefits.”