Tips on why to spend money to save!

How many know that you can actually spend money to save? How many know it is part of the wealth management process? For example,even if you are highly motivated with the savings thinking about the luxurious life you could lead in the future, are you actually compromising on your present for something that could not pan out as you expected?

For example, you would think that if you save about Rs.5000 from your Rs.20,000 salary going on to increase the amount in line with the salary as it increases, the amount you get at the end of 10 years, the Rs.30 lakh rupees will make you rich.

However, one forgets to take into account the inflation, due to which the cost of the dream home or car keeps increasing over the years. This is why financial planning is important. If you put the hard earned money into the mutual fund investment you can thus end up saving not just the expected amount but also additional amount.

You need to understand the market and the right instrument to put your money in. Thus, you can see that just saving could cause you to compromise when the time comes to meet your goal. In mutual funds, you may not be able to predict the exact returns. However, systematic investment planning(SIP)  for a long term is much better option than just long term saving if done systematically and in a disciplined manner.

With the help of the online mutual fund service, you get the opportunity to find the correct fund to help you realise your future goals,like the dream vacation or own a house without any difficulty.