Bajaj Allianz Life Insurance Child plans and policies offer security against constraints like inflation and rising educational expenses.

1. How to build a savings plan without compromising lifestyle
“Work Hard & Party Harder” is the mantra that one needs to chant in real life if he or
she wants to climb the ladder of success. To party all time you need to have sufficient
savings. Only then you will be able to live a lavish lifestyle. We all constantly try to
make some savings efforts in life but if you wish to create your best savings plan then
you have to adopt a method to curb your money. Regular savings habit is part of our
ancient culture. People used to keep savings in the form of hard cash, gold, ornaments
etc. But in today’s day and age, with the rising cost of living, dramatically better
improved lifestyle and with consumerism part of our culture just basic savings is not
sufficient to deal with our expenses. In this article, we will discuss some savings tips
that can help you to build your best savings plan without having to compromise on
your lifestyle.
Budgeting
Preparing a monthly budget is half the battle won. Budgeting should not be a
theoretical exercise and certainly not based on gut feel. When you prepare your
monthly budget start with what is absolutely necessary, e.g. food, rent, utility bills,
transportation costs, children’s school fees, Best Child Insurance Plan, home loan EMIs
etc. You should keep money aside for these essential expenses and then make enough
savings to channelize them in various investment plans.

2. Plan your purchase:
Many people are shopaholic. These petty things matter a lot. A lot of money can be
wasted on unwanted spending while shopping such as clothes, accessories, household
things, gadgets etc. Plan your shopping requirement in advance. Purchase things of
utmost requirements. These small savings can then be channelized for purchase of
equities, shares, mutual funds etc.
Avoid debt:
A debt is always a psychological pressure. When you’re in debt you will never be able
to free your mind to think for creating your best savings plan. Debt comes in many
forms e.g. credit cards, buying expensive items in equated monthly installments etc.
You should remember whenever you take debt, in whatever form, you have to incur
interest expense. Try using debit card, instead of credit card for your purchases. If you
use credit cards, you should ensure that you pay the full amount due on a monthly
basis. Setting up an ECS to pay the full amount due on your credit card on a monthly
basis before the due date, will prevent you from incurring interest expense and late
payment fees.
Expensive gadgets:
When it comes to buying gadgets like smart phones, tablets etc. very often we want to
buy the latest model. But remember the latest model is often the most expensive one.
When it comes to electronic gadgets, people are led by “herd mentality”. Remember one
thing “Its Technology which is expensive not the gadget” So technically speaking
you’re not purchasing any physical asset which will grow over the years. As and when
time goes by, your gadget will be sold at the cost of peanuts. So it’s better to purchase
gadgets at affordable costs with better functions and efficiency.
Shop online:
Shopping online can get you large discounts and help you save more. Online retailing is
picking up in India at an accelerated pace. With more and more shopping portals online
you can compare cost, features and benefits to save the extra costs on your shopping
products. These things help us to save a margin of cost. And the money can thus be
utilized for building your best savings plan.

3. Systematic Investment Plan
Systematic investment plans are one of the best savings plans of modern day times. It
forces you to save more, by leaving a smaller surplus in your bank for discretionary
spending. Based on your savings target, start a monthly systematic investing plan and
set up an ECS with your bank account at the start of every month. With a systematic
investment plan over a long time horizon you will benefit from the power of
compounding of your investment returns and create wealth.