Holiday cash... invest them

It is the season of holidays, more accurately it was in the month of October with both dusshera and Diwali in the same month .

I am sure all of you had good times enjoying with friends and family and did not burst too many crackers on Diwali to ensure we invest in our future ... our environment for our children . 

In such a festive mood , one would have received gifts for self and for children.. maybe some nice amounts of cash also.

Usually we keep those in our pockets after thanking our elders and family members profusely but fail to ensure we just don't spend it as part of pocket money or over and above the monthly budgets!

That is what I would like you to change .. the 1000 or 2000 from parents to you , a few to sisters from their brothers a few where your friends decided to give you cash vs getting you a gift ( gift buying is tough).. all can quickly add up to nice sums and if we are not careful can be easily spent over and above our budget lines .

What would be good and must is for everyone  to calculate these sums and invest for the long term goal - retirement or children's education or children's marriage .

Some of these amounts can grow when you collect and invest them into quite some tidy sums.

It's almost like a sip.. but on special occasions like birthdays , festivals and anniversaries.. twice or thrice a year and clearly over and above your existing investments - a bonus of sorts.

Here are certain rules I would suggest you follow ..

1. These are long term or short term as per the horizons... invest in the plans accordingly.  Equity for long term and debt plans for short .
2. Keep separate folio numbers for these.. for each of your goals so you can appreciate it's growth and as you see it growing it will provide you immense satisfaction
3. You can take a higher risk in these investments if they are longer term.. since they are over and above your already investment plans... if required go for mid and small caps.. but ensure it is only when it is long term
4. Invest in the direct mutual fund category... it will give you the 1-1.5% additional fillip to your returns ( read my previous blog on this topic).
5. Keep them in the separate folio with the right nomination for your children .. ensure you don't just allocate an equal amount.. ensure you allocate the right amounts .
6. Round them off to the next higher amount.. add some from your pocket .. save a little more

As you do this , you will find it enables you to drive some significant savings towards your goals on a bonus basis.

It's all a plan to make your money work harder ...

It's simplefinancialsense

( let me know what you think about this)