Skip to main content

Distinguish between Wants and Needs to save more

Distinguish between wants and needs



If consumers can draw a line between spending and spending wisely, they can make better choices, says D.P. Singh


When you get a gift voucher, you don't spend too much time thinking about the best ways to use it. All you want is to quickly utilise the voucher. Unfortunately, most youngsters treat their paycheques the same way. Even before their salary reaches their bank accounts, plans to blow it away have already been finalised. The dangerous combination of promotional advertising, peer pressure and personal aspirations is compelling millennials to satisfy their wants and sacrifice their needs.

Spending your hard earned money is not a vice. To some extent, it is also essential because it helps us maintain the quality of our lives. But there is a difference between spending for living a good life, and spending on things for instant gratification. While we need to spend on essentials like food, clothing and other things, we also need to think of how to improve the future quality of our lives. If we can draw a line between spending and spending wisely, we can make better choices. For example, you can spend time watching television or reading a good book. Watching television will bring you instant gratification, but investing in a good book may make you richer with knowledge and add to your skills. We also need to distinguish our wants from our needs. A car can be both a want and a need. If you buy a modestly priced car for going to work or travelling with your family, you are satisfying a need. But if you buy a costly SUV to show off, you are giving in to a want.


Mind you, a car is a depreciating asset and its value comes down the minute you drive out of the showroom. But some assets you buy can appreciate as well. They can add value to your life and enhance its quality. A book is one such asset.Then there are investments, such as stocks, mutual funds and even fixed deposits. Like the time and money well spent on a book, these assets can also enhance the quality of your life by adding to your wealth.


Prudent investing should be a conscious choice for the young generation. It can transform their financial future and make them free from money problems. Good investments appreciate in value over time, gaining from the power of compounding over the years. Some have even called compounding the eighth wonder of the world.


Admittedly, investing before spending may not come automatically to a generation brought up on consumerism. But it is a discipline we ought to develop. An investment should be seen as a gift voucher which you cannot use right away but can be redeemed for a far higher value after a few years.






-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in India for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

-----------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

----------------------------------------------- 

 

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.

Impact of Demonetisation

The government's move to demonetise `500 and `1,000 currency notes will immediately impact reserve money and money supply in the system along with the balance sheet of the Reserve Bank of India, the sole authority in the country for accepting currency notes and coins as legal tender. ET explains the interplay of currency, reserve money and money supply. 1. What is currency in circulation? It is the total value of currency (coins and paper currency) that has ever been issued by the central bank minus the amount that has been withdrawn by it. Currency in circulation comprises currency notes and coins with the public and cash in hand with banks. It is a major liability component of a central bank's balance sheet. 2. What is reserve money? It is essentially the central bank's money . It is also called high-powered money , base money and central bank money . As per the definition, reserve money equals currency in circulation plus bankers' deposits

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis

Reminder from Income Tax Department for Income Tax Return Filing

The income tax department has sent out emails to tax payers reminding them to   e-file income tax returns for income earned in FY 2015-16 (assessment year AY 2016-17). The due date for submission of tax returns for FY 2015-16 is 31 st   July 2016. The following email has been sent- Dear Taxpayer, By this time last year, you may have had already electronically filed your Income Tax Return. This is a gentle reminder for you to file your Income Tax Return for Assessment Year 2016-17. E-filing is simple, easy and convenient as you would have experienced in the last year. You are requested to login to  https:// incometaxindiaefiling.gov.in   and download the free return preparation software with a host of new features to help you in preparing the Income Tax return and submit your return. You can also prepare and submit ITR1 and ITR4S online. Please take some time to browse through all the value -added services offered on the E-filing website that will help you prepare your return accurat
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now