An entrepreneur, investor, and marathon runner, Aniketh Jain is currently serving as the Chief Revenue Officer of Milan-based Kaleyra- the world’s most trusted Communications Platform as a Service (CPaaS) which got listed on the NYSE in 2019. As a leader, Aniketh’s key strengths are Product Management, Business Process Automation, and Sound Strategy with execution. His thoughtful initiatives helped him build and nurture winning teams with a global approach to make all business communications less complicated. He has consistently been working towards building effective teams to meet organizational goals.
Life can be made better, one investment at a time! The question troubling the minds of all of us is how to invest and whether it is safe! The key to financial independence can be simply defined in two terms- saving and investments. Saving is the process where you park your hard cash to preserve capital and Investment is defined as using this capital to generate returns over a time period. In order to boost your savings and investments, one needs to increase the inflow and reduce the outflow or spending.
We will discuss the 10 essential points that can help anyone from a young adult to a senior citizen living on a fixed income, whether you have a seven-figure job or you are trying to pay off your mortgage.
- Goal Setting
The top reason why most people fail to save up enough or invest is their lack of goal setting. Understanding where you currently stand financially and defining proper attainable financial goals go a long way. This is probably the most overlooked factor because it takes effort to understand who we are and what we want from life. Correctly defining can help save up capital by reducing unnecessary expenditure. This allows one to expand his thinking horizon and not get caught up and confined by tunnel vision.
- Saving comes first
This point can’t be emphasised enough. Whatever paycheck comes in, set aside an amount then and there. Don’t wait up on spending most of it before setting aside what’s leftover. You will find a way to manage with what you get but what’s important for you is to build up your capital. On the effective way of achieving this is to set up automatic transfers directly into your savings account.
- Assess your habits financially
Now that you are left with an amount less than what you used to. It will allow you to look at your spendings financially. Small daily spending habits can be controlled when looked at from a financial point of view. This part is bound to be challenging as it will push you out of the financial comfort zone but it will also help in spotlighting your spending habits.
- How can I make more money?
To give the necessary boost to your capital is to increase the cash flow. Find more ways from where you can make more money. If a second job is necessary, take that step. The more your savings capital will build up, the more options you will have when you will enter the market to find investments that align with your goal. Timeframe planning is imperative for you to pull this off!
- Maximise Your Tax Savings
Understand the terminologies on your pay slip. Learn the instruments for tax saving, from ELSS funds to 80 C forms to mediclaim understand the gamut of instruments available . New earners need to spend more time understanding the vetted ways put down by the Government.
- Get hold of the tools of the Trade
Depending upon your goals, look for short-term and long term saving plans. Savings accounts, Certificate of deposit, Fixed deposits, FDIC and securities are good starting points. For diversification you can even look for mutual funds, options or even crypto!
- Understanding Costs Involved
If you are making investments at the moment, there are various costs other than the investments involved such as commissions and management fees that you need to be aware of. With a better understanding of these costs, you will be able to cut upon them or look for other possible ways to prevent them all together so as to increase your savings.
- Improving your salary structure
Making a few adjustments in your salary structure can reduce your taxable income and make your savings more efficient. Taxable slabs need to be looked into and exploring ways to reduce the impact of taxes can go a long way!
- Explore Options
While sticking to your current habits, keep looking for more areas where you can improve upon. With the additional knowledge, review your goals and savings plan. Use it in your favour to keep your savings capital growing.
- Watch it grow and Invest
Investing as early as possible. Investing is like saving with some additional benefits and risks. Stick to an investment plan. Grow your portfolio. Optimize your financial condition by coordinating your savings and investment plan that are in line with your current and future needs.