The best way out there to save money is ‘Automation’.

  1. Have an automated recurring deposit which deducts balance from your account on your pay day.
  2. Having 1 RD amounting to 30% of your net take home.
  3. Choose RD for 12 months.

What you will have at the end of 12 months.

  • Almost 3 months of extra salary to spend.
  • Put that amount in a flexi fixed deposit (Which you can break any time without additional penalty).

I always plan for future by positive EMI. Suppose I need to buy next iPhone, I will plan now. Make an RD of tentative goal in mind and allow automatic deduction.

Hence instead of taking phone on EMI from bank (Which charges 14–18% interest), I will invest in safe investment like RD, get about 7% interest. Hence My net saving would be around 25% ! (18% saved from EMI and 7% gained from RD).

What are some money saving tips?

If you just purchase say 2 lakhs of products per year on EMI and apply my method, you will end up with at least 2.5 lakhs richer in just five years!

If compound interest is 8th wonder of financial world, automation is 9th!