Become financially free, buy what you want with this tiny habit

Moneycontrol News

It never hurts to indulge and treat yourself once in a while, be it buying the latest gadgets, going on weekend trips, pampering yourself, or even updating your watch collection. But, everything comes at a price, wherein financial planning becomes crucial, especially when you don’t want to touch your rainy-day savings.

A sense of freedom to buy what you desire and treat yourself from time-to-time can only come when you become wise about money management and take a disciplined approach towards financial freedom.

Budget is the foremost and common you should start with. And that’s pretty much. Whatever your income might be, sticking to this approach will benefit you, leaving you with extra cash. Chris Reining is also a fan of this tiny habit of savings, who retired as a millionaire at the age of 38.

Post savings, investing in the right instruments is also necessary to make extra money. After all, just stashing cash won’t make more money, you will have to make it work.

Here are some investment options that can fulfil your short-term desires and will help you in achieving financial freedom

1. Fixed deposits: This is one of the traditional methods, which is dubbed as a safe choice for investment. You can deposit money for any tenure depending upon the bank. The average interest rate is 6.5% for one year.
2. Recurring deposits: If you wish to invest at regular intervals for short-term, RD is a good option. You will have to invest regularly for a fixed period upon maturity and receive the total amount. Its interest rate is similar to that of an FD.
3. Liquid funds: This is one of the popular choices for short-term investments. They are debt mutual funds that invest your money in instruments such as treasury bills, government securities, etc., that hold the minimum amount of risk. These funds can invest in instruments up to a maturity of 91 days.
4. ETFs: ETFs were created to combine the best characteristics of both stocks and mutual funds into a combined investment vehicle. ETFs protect long-term investors from the inflows and outflows of short-term investors. If you make wise choices here, you can even end up buying your dream car.