Manoj Kumar Patra
Chief Financial Officer
Percept Sports & Entertainment
Mumbai

Importance Of Saving

One of the most important things you can do for your financial wellbeing is to get in the habit of saving. You probably hear much about the importance of saving all of the time, but that is because it is so important. There are a few things in the realm of asset management that are as important as developing a saving habit. And you can start today, no matter how much money you make.

• Save what you can: Many people look at their finances and become discouraged because they can’t save a whole lot right now. However, anyone can save, and can do so at any point in life. It’s not how much you put away, but rather that you actually do it. Developing the habit will ensure that you will set money aside, and as you begin to make more money, you can set more of it aside.


• Strategies for Saving Regularly. Savings often seems a big challenge when you feel that your income is already
  over-committed. But financial planning experts point out that almost everyone can find ways to trim spending, to buy more efficiently, and thus find money for savings. It does take some discipline, but it’s worth it. Here are some important strategies for creating more savings.


• Find out where your income is going before you decide what you can save. Most people have only a general idea of their expenses and spending. Logging everything you spend for two weeks to a month (even one week) can be eye opening. Knowing how much you are spending on coffee breaks, lunches, random purchases (books, CDs, movies, new computer gadgets) and even groceries or cell phone bills often reveal places to save.


• Make a budget. A budget provides a plan for spending. It sets out your fixed and regular expenses such as mortgage or rent, utility payments, and car or loan / credit card payments and sets goals for other necessary but modifiable expenses, such as how much you spend on groceries or clothes. It also sets limits for discretionary spending, such as what you spend on entertainment, recreation, or optional travel. Put a savings goal in your budget.


• Pay yourself first. Paying yourself first before other expenses is the number one rule for successfully saving more. Many people discover that if they put aside a set amount in savings with every pay check, then they don’t really miss the money saved.

There are a number of financial products and services in the market that can help us plan our savings better and with discipline:

• PPF’s (Public Provident Fund - a saving-cum-tax saving instrument, also serving as a retirement planning tool)
• Recurring Deposit (special term deposits offered by banks, helping people deposit a fixed amount every month)
• SIP (Systematic Investment Plan, a vehicle offered by mutual funds to help investors save regularly)

As the ancient proverb goes, “The art is not in making money, but in keeping it”