Saving a portion of your salary and using it in Systematic Investment Plan (SIP) is a easy task for salaried individual to invest in mutual funds but what if you are not a salaried employee, what if you do not get salary message on last day of the month. You could be a practicing professional, consultant or an entrepreneur. You might be lacking constant inflow of money, in that case what to do ?
How to ensure regular savings without having regular money inflow?
Savings should be inherent and not by choice
In case you are an entrepreneur or practicing professional and are not having employer over you to deduct a portion of your income and invest into PF or other automated saving account still you must be saving a portion of your unfixed amount of money by investing a small amount say ₹ 5000/- to invest. Keep your investments in two portions a regular one where a minimum amount set by you (SIP)is going and irregular funds for months you have more savings where you can invest the extra savings which can be determined and changed every month.
Ensure you are paying your debts on time first, as that may impact your CIBIL Score negatively and penalties and higher interest can be levied for non payment of dues timely. The debt payment should be included in your budget. We also recommend settling with Small Homes with smaller home loans and EMI’s for shorter period. Use irregular inflows to repay part of your debts.
Use your idle lying funds to invest into Liquid funds or short term debt funds. In case you can any lumpsum payments same also you can invest in liquid funds or short term debt funds, its the best use of your idle lying funds. There are many apps these days with which you can instantly apply or withdraw money into different funds on your fingers like PAYTM Money, Zerodha Kite etc.
Growing Savings and investments
As you are an entrepreneur and your business is in growing phase, estimate your business plan at the beginning of the year and plan your amount and ratio of savings as per the plan, than again at the beginning of new financial year plan your savings and investments on a higher side than on the last years.
Keep a track on your Goals
Everyone has goals for which they do investments and they should be tracked and evaluated time to time. For example you might be planning for a fortuner car and after 1 or 2 years the goal seems to be unrealistic or non important then you can reprogram it and can settle for a i20 car, after all its all about having a car at door of your home, or lets say you are savings for your daughters education at Harvard, now same is looking unrealistic still you can reevaluate and give quality education to your child.
- Uncertainty Plan
The future is uncertain and so we all must have an uncertainty fund. This may a large corpus of saving or may be term insurance plan. In most of cases we have seen people saying they have LIC plans or ULIP pans but trust me they are not sufficient it is always worthy to have a term insurance along with adequate medical insurance.
As an entrepreneur the needs of savings and investments are much higher when it comes to ensure that dreams are not compromised of your loved ones in your presence or absence.