We have a number of engaged app users and they belong to a variety of age and income groups. However, we have seen one constant challenge with everyone. How to create a budget that enables a monthly surplus.
Irrespective of how much you earn, expenses find a way to build up and surpass your income. People in the high-income category also struggle to create a surplus every month and their only savings come from the annual bonus.
We have always stressed the importance of creating a monthly surplus and it often requires a lifestyle change. One of our users actually gave up alcohol as he realised that he was spending 15% of his monthly salary on weekend binge drinking. This 15% is now his surplus every month. Mind you! He achieved this without cutting down on his habit of often dining out.
Another user was able to restructure his finances by taking our advisory services and found ways to generate a surplus by cutting down on credit card interests and wasteful gadget shopping.
However, the question that is common once you hit a surplus is around where to park this surplus.
You want to park it at a place where it is easily accessible and gives good returns without subjecting you to a lot of volatility. The last thing you need is to see your hard earned monthly surplus go down in value as it influences motivation.
Recognising these factors we introduced the “Save the Change” feature wherein users can invest in ICICI prudential saving funds. This fund invests in a range of debt and money market instruments. This is the ideal investment for meeting the objectives of yield, safety and liquidity.
We have hundreds of users who have progressively increased their monthly surplus and are enjoying 6.5% plus returns through this feature.
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