• SENSEX  
    ( -0.37%)
  • USDINR  
    ( 0.33%)
  • GOLD  
    ( 1.55%)


Eye  177
Share this article

How much money do I need to save per month?

With 2020 kicking in, everyone wants to get closer to their goals and resolutions. A lot of people vow to make new year investments. Now everyone starts to invest by talking to people around them who invest and understand what works best. What one needs to understand is that there is no fool-proof way of investing money. One can start investing in mutual funds, try online market trading or find the best stock broker online. The end goal is to save money. While there is no specific way for all, there are certain guidelines one can follow.

Now what is the reason people start these new year investments? It is to be financially secure, to have a comfortable retirement while having a fun time today. Of course, it is difficult to start saving with bills, loans and other expenses to take care of.

To understand how much investing you need to do in mutual funds, online market trading or whatever means, we will define three broad areas you need to save for. This will help give you an overview of how much you would need to save, as per your salary.

One never knows when something bad can come their way. So, you should always be prepared for the worst. Hence, an emergency fund is an absolute must!

Why? Because a heavy doctor’s bill should not collide with your bills or drain your credit card. So start hunting for the best stock broker available online. In case of an emergency, your personal life would not get affected as much if your savings break-even with your earnings over six months.

Mutual fund investments are subject to market risk, but not investing is a risk for emergencies. Start investing this new year, slowly and gradually. Remember to understand the market, analyze your spending patterns and gauge for improvements.

Until and unless you work in the government sector or have a tenure, you should be saving for a happy and comfortable retired life. In fact, even in the government sector, one should always be prepared, just in case there is an unseen major official change or downsizing.

The earlier you start saving for your retirement, the more money would be accumulated by the time you retire. So, start today!

Somewhat less of a quarter of one’s annual income should be going into online market trading, trading of their choice or into any other form of savings.

Again, putting aside that percentage of your salary could seem daunting, and it is. But, you need to start somewhere. So start by saving 5% and work your way up.

Houses and other future goals
While saving for the above two categories is important, there are other goals that you might have for your future. It could be planning an expensive trip, a house, a car, having children, paying for children’s education, supporting elderly parents, and well, so much more!

Saving for all these goals has to start as soon as you realise that these are your goals. Your new year resolution could be deciding on these long-term goals and your new year investment could aim at starting to save for them anyway.

Since these goals are tangible, and you can probably see an effective timeline, saving for it is much easier than the other two. To understand how much you need to save, calculate the amount you would need and then to see how much you need to save per month, follow this simple math: Divide the amount of money by the amount of time left to save. It will give you a definitive amount per month. If it seems too daunting, you can increase the timeline to reach your goal.

After having discussed these broad areas you need to save for, we know, it is scary and sounds difficult, but it happens by itself once you start. Investing in the trading market is one way to start saving money, other than buying gold and other assets. To understand mutual fund investments or the stock market could take a while. But, it takes little to find the best stock broker online!

Blog by – Ashish Ajmera
  • Useful Links

    Back to Top
    Attention Investors
    Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day.............issued in the interest of investors. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account                                    "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
    Investors should be cautious of unsolicited emails and SMS advising to buy, sell or hold securities and trade only on the basis of informed decision. Investors are advised to invest after conducting appropriate analysis of respective companies and not to blindly follow unfounded rumours, tips etc. Further, you are also requested to share your knowledge or evidence of systemic wrongdoing, potential frauds or unethical behaviour through the anonymous portal facility provided on BSE & NSE website.BSE   http://www.bseindia.com/investors/tip-off-registration.aspx?expandable  NSE   https://www.nseindia.com/int_invest/dynacontent/any_portal.htm
    All payments to Stock Broker shall be received from the market intermediaries/participants strictly by account payee crossed cheques / demand drafts or by way of direct credit into the bank account through electronic fund transfer, or any other mode permitted by the Reserve Bank of India. Stock Brokers shall not accept cash from their clients either directly or by way of cash deposit to the Bank Account of Stock Broker.
    Group Companies Members of : BSE, NSE, MCX, MCX.SX, CDSL, NCDEX, Broking Services, Depository Services, Portfolio Management Services, Member Area IPO Distribution, Insurance Broking
    BSE Clearing No.: 911 | SEBI Regn. No.: INZ000177531 (Cash/F&O) | NSE Clearing No.: 11858 | SEBI Regn. No. INZ000177531 (Cash/F&O/CDs) | MCX-SX Clearing No.: 11400 | SEBI Regn. No.: INZ000177531 (CDs) | CDSL DP ID: 30300 | SEBI Regn. No.: IN-DPCDSL-210-2003 | MCX SEBI Reg No.: INZ000032336 | MCX: 10665 | NCDEX: 00254 | NBFC RBI Regn. No.: 13.01851
    © Copyright 2018 Ajmera Associates Ltd ( ISO 9001:2015 Certified )
    Designed, Developed and Powered By CMOTS Infotech ( ISO 9001:2015 Certified )
    Open An Account Today !