One of the things that I find most incredible and interesting about blogging is how different people use OneMint, and I’m always keen to hear if someone has anything to say about how they have used the site.
I find that listening to these stories is the best motivation to continue writing, and the range of readers and the way they use OneMint truly amazes me.
Mr. Chari is one such reader who I exchanged emails a couple of weeks ago, and he shared his approach to manage money, and how he has benefited from the site.
He graciously gave me far more credit than I deserve as is evident by most of his ideas that I never wrote about, and looking at his detailed emails, I thought they will make a good post as there are some very good takeaways here.
Thank you Mr. Chari for your time, and here are some of his thoughts that he shared with me (edited).
1. I had to invest my father’s money which was quite an amount in tax free bonds, but after your article comparing tax free bond returns to SBI fixed deposit, I found putting the money in cumulative fixed deposits proved to be more profitable he being a senior citizen. As for me who is in 30% bracket, I invested in tax free bonds.
2. Your blog on infrastructure bonds also proved useful in choosing the AMC for investment.
3. I also invest in gold ETFs as well as the scheme by Tanishq where you can invest for 2 years monthly with any fixed amount and book your gold. You can choose any day of the month whereby I track gold rates and book on the day it has fallen.
4. I advise my office to deduct an average sum of income tax monthly. I know that at the end of the year it will fall short because we are given DA every six months being a government employee. So I opened a recurring deposit account of 10,000 per month for one year in bank. I get the interest plus the capital so I save quite an amount. The interest takes care of balance income tax and the principal is partly invested and partly spend for festivals.
5. I also regularly invest in 5 equity, 1 hybrid and 2 debt funds irrespective of the market fluctuations for the last 8 years. I am on a handsome profit.
Whenever DA goes up I try to take one additional SIP in the existing scheme only. I do not get chance to make any additional investment because I am already booked and have no surpluses except for some emergencies. But I do stick to what I have and all of them are deducted through ECS from my bank for long periods so nothing for me to worry. In 2008 and 2009 I have seen my funds have gone negative to the extent of 66% but I still stuck to my investments due to which I am well off now. I stopped tracking them but invested through SIP’s thinking I am getting more number of units and whenever market goes up it will benefit me. It is a game of patience, that’s all.
6. Till one and a half years ago I was very jittery when investing in direct equity. I have tried retaining good stocks for quite a long time but it is still in a loss. I am more comfortable with MF’s so religiously invest in it. May be I need to develop more confidence at 59.
7. The last is the same as in your recent article on unnecessary purchases. I reward my children and my wife for not doing so. So the reward is proving to be cheaper than the unnecessary purchases. For the kind of salary I get the savings are around 48%.savings being slightly higher because of frugal living and low needs in a small place as Raipur. I know I am not perfect but even at this late stage I am taking up whichever is beneficial. I don’t know how you would react to such small things. These small things are definitely helping my colleagues and students in their life which I believe is more richer.
I felt that these were some great ideas and once again, I’m really thankful to Mr. Chari for sharing his thoughts. I’m really keen to hear comments on this one, so please post any thoughts that you may have!