Do you Waste Money? You will most certainly answer … No! Never! Of course not. Then again let me rephrase the question … Do you utilize your Money optimally ? Not sure…
By optimal utilization of money …. I do not mean that you go to a restaurant and finish off your food without leaving a single morsel… or you wear your shoes till the sole wears off.
Since childhood , we have been imbibed with the economic concept of Man has unlimited needs , limited resources hence optimum utilization of resources is mandatory . Then again we have also been taught about the Liquidity Preference Theory… where by we have a preference to hold money in cash or in our savings account … End result … Considering the present inflation rates …
So Any Way Out ?
Yes of course … nowadays as they say ‘Namumkin Ab Mumkin Hai’. So what do we do? Well one-word answer ‘INVEST’ …the ways of investing; well with the amount of information available on the digital platform we can write a thesis on it.
The simplest way forward would be to find out your 1 month’s expenditure and ensure that you maintain amount equivalent to 2 month’s expenditure plus the average savings bank balance required in your account. So now what do we do with rest of the money ?
Simple again, invest about 30% to 40% of the surplus in Liquid Mutual Funds or any other short term Debt Funds. In any point of time, if you require
With your present consumption and future unplanned
So now again re-iterating my question… will you still waste money ? The choice is yours…and so is the money.