April 26, 2023

10 ways to building wealth through everyday financial discipline

Do you aspire to build wealth while working for a nine to six job? But not sure how? Congrats, you’ve reached the right place.
(But before that, check out our Youtube channel. Here’s where we share insight driven content that will educate you and help you in your journey to financial freedom. Check it out here (LINK), subscribe to our channel, and come back to read the blog!)
In a world of uncertainties, being financially aware, putting hard stops to your expenses, and maintaining consistent investments can help you avoid financial troubles.
Today, we’ll together understand how to manage our money effectively, saving a significant portion of our salary, and making smart investments to build long-term wealth.

Plan and track your monthly budget

Understanding our cash flow is vital to gaining control over our finances, which means keeping a track of every single rupee that is being spent. We should create a monthly budget plan by categorising our expenses and diligently tracking our spending. Maybe allocate a portion of our salary to a separate account for savings and investments? Why not!

Invest a portion of your increment

When we receive a salary hike or appraisal, it's tempting to indulge in various purchases like those 200 dollar shoes! However, instead of splurging, consider investing a portion of the increment. Setting up a monthly Systematic Investment Plan (SIP) ensures regular savings. Investing is crucial because inflation gradually erodes the value of our money. By investing in assets that outperform inflation, such as equity or gold, we protect our purchasing power and build a solid financial foundation.

Invest and save taxes

Explore various tax-saving schemes and investment options to maximise our savings. Employee Provident Funds, Equity Linked Savings Schemes, Life Insurance, and National Pension Schemes are some avenues that provide tax benefits while helping us save money.

Cut down on unnecessary expenses

One of the most overlooked methods of saving a significant portion of our salary is by reducing our overall expenses (it’s the age of minimalism!). For instance, considered carpooling or using public transport instead of relying on our car for every commute? Review mobile phone or WiFi bills and opt for a more affordable plan. Let’s ask ourselves at every purchasing point like a grocery store, “do we really really need this? Or is it just a temptation?”

Get health insurance

Unforeseen health emergencies can drain our finances. Let’s protect ourselves and our loved ones by investing in a health insurance policy. Paying a monthly or annual premium for health insurance is a prudent financial decision that provides us with coverage during emergencies. Additionally, under section 80D, we can claim tax deductions for the health insurance premiums paid.

Being mindful when shopping online

Impulsive online shopping can quickly eat into our savings. A helpful technique is to leave items in our cart for a day or two before making a final decision. This helps us determine if we genuinely need the product. Another idea! Replacing the habit of visiting e-commerce apps with investment apps. Stock like you shop! Check out ‘Upstox for Investors’, you’ll know what we’re talking about.

Avoid late fees on credit cards

Missing credit card payments can result in significant late fees and interest charges. Let’s use reminder apps or set up automatic payments through our mobile banking app to ensure we never miss a payment deadline. By being prompt with credit card payments, we avoid unnecessary fees and prevent our debt from snowballing.

Practise smart grocery shopping

It's surprisingly easy to overspend on groceries if we're not mindful. Create a shopping list before heading to the store, focusing on essential items and avoiding impulse purchases. Be aware of marketing tactics at the billing counter that tempt us with additional products. By sticking to our list, we'll stay within our monthly budget and avoid overspending.

Utilise your kitchen

While food delivery apps offer convenience, they can also strain our finances and health. Limit eating out to a couple of days per week and use the remaining days to cook meals at home or prepare them in advance. By reducing our reliance on food delivery and dining out, we'll save a significant amount of money in the long run, for real!

Reduce electricity consumption

Being conscious of our energy usage not only benefits the environment but also saves us money. Develop habits like switching off lights and appliances when not in use. Opt for energy-efficient options like CFL or LED lights, which consume less energy and have a longer lifespan compared to traditional bulbs.
Building wealth requires discipline, smart financial decisions, and consistent savings and investments. Let’s start by creating a monthly budget plan, reducing unnecessary expenses, and investing in assets that outperform inflation. Rather than succumbing to the temptation of increased earnings, increase your investments to secure a stable financial future. Hope this helps!

Disclaimer

The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.

Never miss a trading opportunity with Margin Trading Facility

Enjoy 2X leverage on over 900+ stocks

Upstox Margin Trading Facility

RELATED ARTICLES

What is Form 13 - Transfer of EPF Account & How to Fill/Download it Online

When paying the payee, the deductor/payer deducts tax. And the deductee/payee asserts this when filing an ITR using Form 26AS. Sometimes a payee's overall tax obligation is less than the TDS taken from his income. Additionally, he doesn't want to wait until the end of the year to request a tax refund that was withheld. In these circumstances, the payee may submit a Form 13 request to his Assessing Officer for a non-deduction or lower tax deduction following Section 197. (AO). For each fiscal year, a separate Form 13 must be filed. The deductor must also get the equivalent compensation for lesser or non-deduction of TDS/TCS.

Atal Pension Yojana (APY) 2023: Benefits, Login, Details, Schemes, & Registrations

Atal Pension Yojana was launched on 9 May 2015 to create a universal social security system for all Indians. With a focus on the needy, the underprivileged, and the unstructured sector workers, [Pension Fund Regulatory and Development Authority](https://upstox.com/saving-schemes/pension-fund-regulatory-and-development-authority-pfrda/), i.e. PFRDA, oversees APY. In this article, you will learn about the objectives, form download procedure, Atal Pension Yojana investment scheme, advantages of joining the Atal Pension Yojana scheme, benefits and characteristics, frequently asked questions, etc. Every bank account user between the ages of 18 and 40 is eligible for Atal Pension Yojana, and the amount varies according to the selected pension amount. With the caveat that beginning on 1 October 2022, any citizen who is or has ever paid income taxes is unable to join Atal Pension Yojana. The government would guarantee a minimal pension. This means that the Central Government would cover any shortfall if the contributions-based accumulated corpus generates a return on investment that is below expectations and insufficient to cover the minimum guaranteed pension. Alternatively, the subscribers would receive improved pensionary benefits if the returns on investments were higher.

Pradhan Mantri Matru Vandana Yojana (PMMVY) 2023: Login & Scheme

The Pradhan Mantri Matru Vandana Yojana (PMMVY) is a government scheme introduced in 2017 by the Ministry of Women and Child Development to provide support for pregnant women above the age of 19 years for their first living child. The PMMVY scheme plays a significant role in enabling the child and the mother to get proper care and benefits during the critical period during and post-pregnancy. As part of the scheme, a cash benefit of INR 5000 is directly credited into the pregnant woman's post office account, bank account, or lactating mother in three timely installments. This monetary benefit for the family ensures proper care of the mother's and child's health condition, uplifting the overall health and well-being of the mother and the child. Keep reading to understand the critical aspects of the Pradhan Mantri Matru Vandana Yojana and get answers to some of the most asked questions about this government maternity scheme.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) 2023

The Ayushman Bharat Campaign was launched by the government with the intention of improving healthcare in the country and providing primary health to its citizens. Two schemes are covered under this campaign. One of them is Pradhan Mantri Jan Arogya Yojana. Pradhan Mantri Jan Arogya Yojana was a scheme that was launched under the Ayushman Bharat in the year 2018 in the district of Ranchi by Shri Narender Modiji, the PM of India. The scheme was formerly known as the National Health Protection Mission. The scheme provides a cover of INR 5 Lakh for every family for a year for hospitalization of tertiary and secondary treatments across private and public hospitals in India to greater than 10.75 crores of families across India. These families form the lower 40% of the population of India. The Government gives the full expense of the scheme, and the cost is jointly shared by State and Central Governments.