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7 Fun And Easy Tips to Save More Money

We all want to save money and build a comfortable financial cushion to plan for our future.  Many of us have milestones we want to reach like buying a house, a car, paying off debt or going on vacation. But although we may have good intentions, many of us don’t save money until much later in our lives because our current wants and needs seem much more important.

The trick to having enough money for a comfortable financial future is to start saving money as soon as you enter the workforce. Saving is not as overwhelming as it sounds and with a little prioritization and self-discipline, you can make it a life habit. Here are a few tips to help you get started:

7 fun and easy tips to save more money

1. Tackle your bigger debts

The first step to start saving money is to tackle your bigger debts, specifically the high-interest ones from any loans or credit cards you have taken out. This is because the fees on the loans add up quickly and can take up a significant portion of your income. Also once your debts are paid off, saving money in other areas of your life becomes much easier.

However, tackling the bigger debts can be intimidating so another effective way is to use the snowball method. This is when you start by paying off the small debts before you pay the larger ones. This method does not focus on the numbers in debt repayment but on behavior modification. When you pay the larger debts first, you will not see the numbers go down significantly and this can demotivate you. But paying off smaller debts is easier and you see the progress quickly which encourages you to stick it out until you’re debt free!

2. Cut down any unnecessary bills

When people budget out their expenses, they find many unnecessary leaks in their income. A major expense bracket is your grocery and entertainment bills.

For groceries, a great way to save money is by planning out your meals each week and taking account of what you have and what you need to buy. This will stop you from overspending on food and reducing any wastage. Managing your grocery expenses also reduces the money spent on restaurant meals as you can eat more home-cooked meals.

Brewing your own coffee at home is also very beneficial. Studies show that the average American spends $2,600 on Starbucks coffee every year which is a considerable amount of money to spend on coffee!

starbucks

3. Reduce household expenses

In addition to food and entertainment, there are many ways you can reduce your household expenses as well. A quick way is to have an eye on the thermostat in your home, lowering the temperature by 10 degrees Fahrenheit can reduce energy costs by 3-5%. Other ways to reduce energy costs includes taking shorter showers, washing your clothes in cold water or switching to LED bulbs that have a lower energy consumption.

With OTT platforms such as Amazon Prime and Netflix, many people no longer find the need for cable television. Although your cable bill may not seem like much, it adds up over the course of the year. Cutting ties with cable and switching to streaming services can help you reduce your expenses in the long run.

Another expense you can reduce is your phone bill. You can either opt for a family plan to lower your overall costs or minimize your data plan by using apps such as WhatsApp, Skype or Facetime to make phone calls.

4. Use a zero-sum budget

Saving enough money always comes down to a well-structured budget. If your goal is to save money aggressively, a good method to utilize is the zero-sum budget.

The goal of this budget is to make your income minus the cash outflow equals zero. This is done by allocating every single dollar you make to a certain category. So for instance, you could allocate money to food, entertainment, bills, savings and paying off debt. A survey conducted showed that people were able to save 19% more of their income with this method.

Also read:

5. Automate your savings

A fool-proof way to save money is to automate your savings. When you ensure that a portion of your income goes into a savings account, you will be living on less money without even realizing it.

Creating a budget is easy but sticking to it is the challenging part. By automating your savings, you no longer have to worry about not meeting your budget goals. It is a good idea to have a separate checking and savings account or an emergency fund where the money from your income can be transferred every month.

automating expenses

(Image credits: Forbes)

6. Get a side hustle

In addition to cutting your costs, another great way to save more money is to diversify your income. You can do this by getting a side-hustle.

A side hustle is a part-time job or a passion project which provides an extra source of income. Many people do side-hustles as a hobby and use it as an outlet to express their creativity while earning an extra income. Very often, bloggers and Instagrammers turn their side-hustle into their full-time jobs if they find it to be a lucrative career. A few great side-hustle ideas include writing, coding or teaching a class.

Also read: 11 Best Passive Ways to Make Money While You Sleep.

7. Take a ‘staycation’

A staycation is an inexpensive alternative to an actual vacation and can be just as fun! While it is a trendy term used in social media, the reasoning behind it is pretty rational. If you are looking to have fun while saving some money, you can find some fun activities to do in the area you live in instead of dropping money on expensive airline tickets.

A staycation includes everything you would do on an actual vacation like taking time off work to relax and unwind and spending time with family and friends.

Closing Thoughts

Saving money can be intimidating at first but with a little perseverance and discipline, it can become a life habit. Each person has different goals when it comes to saving and it is up to you to decide where you can cut costs to make the most of your income.

While saving is important don’t forget to indulge in experiences once in a while because at the end of the day it is the experiences that you will remember not the materialistic comforts.

NISM Certification - A Complete Beginner's Guide

NISM Certification – A Complete Beginner’s Guide

The majority of Commerce students that I come across these days are looking to make their career in the field of Finance. Even, a substantial number of engineering graduates whom I personally know, are currently changing their career to the Financial Services. At present, the Finance industry in India and across the globe is growing at a rapid pace. Therefore, it is of no doubt in saying that professional degrees and courses like MBA (Finance), CFA, FRM, and CFP are attracting a huge number of students every day.

However, apart from these mentioned courses, is there any other course which can give you the license to work as a self-employed individual in the Finance sector? Do you know of any course which is comparatively easier to pursue, affordable and gives you the ticket to pursue a career in the Finance industry?

The answer to both the questions is “NISM certification”.

But hey! Are you hearing the word ‘NISM’ for the first time? Even if yes, then you don’t need to worry at all. In this article, I would share a brief overview of the wide range of NISM courses available and how you can get certified with NISM.

What is NISM?

nism certification

NISM (National Institute of Securities Markets) is headquartered in Navi Mumbai, India and offers a wide range of courses to the Indian students. It is a public trust which was established by SEBI (Securities and Exchange Board of India). SEBI is the apex body which regulates the securities markets in India.

The SCI (School for Certification of Intermediaries) is one of the six schools of excellence at NISM. The SCI is engaged in the development of Certification examinations and Continuing Professional Education (CPE) programmes in the Financial Markets domain. These are conducted for validating and enhancing the abilities of the associates working in the Indian capital markets.

What does the NISM offer?

The NISM campus in Patalganga (Maharashtra) offers two full-time courses in Finance. The first one is PGPSM (Post Graduate Programme in Securities Markets) and the other is PGD (Post Graduate Diploma) in FinTech.

Apart from these two stated courses, NISM also offers a few other long term courses in collaboration with international bodies. You can have a look at those courses clicking here.

Further, there are 22 short term certification courses offered by NISM. In this article, we would predominantly hold a discussion on these certifications. A majority of these short term courses are mandated by SEBI for those who are either self-employed like an investment advisor or research analyst or working in the Financial Services industry in India.

The rests are voluntary certifications which have not been mandatory for the finance professionals. But, the voluntary certifications are beneficial in the sense that they provide advanced knowledge in some specific area.

For example, Mutual Fund Distributors Certification Examination (Series V C) is a voluntary exam but its contents and way of testing the candidates is more difficult than other Mutual Funds exams.

nism courses

Note: You can find the list of all the available 22 courses on the website of NISM here.

How to register for a NISM certification exam?

In order to register for any course offered by NISM, you first need to create your account on the NISM website. Click on this link and it will take you to the home page of the website. While creating your account, make sure you have a digital copy of your photograph, aadhar card and PAN card with you.

After you are done with the account creation, you can choose any module of your choice. To register for any module exam, you have to select the exam date, time and center first. After that, it will take you to the payment gateway.

Once you have paid the required exam fees, you would get the soft copy of the workbook (study material) and the hall ticket in your account. Take a physical printout of your hall ticket and carry it with you to the exam center on the day of your exam.

Also read: Want to Take NSE Certification Exam? Now You Can!

How are the contents of NISM courses?

The NISM provides the students with soft copies of the study materials in the ‘pdf’ format. The content covers both theoretical and practical aspects of the Financial Markets. These courses teach you various jargons which you need to know for pursuing a career in the Financial Markets.

Anyways, you can also enroll in these courses if you are simply interested in gaining knowledge. These programmes teach you the key theoretical concepts of the Stock Market, Mutual Fund, Financial Planning, and many others. The exams are based on MCQ (Multiple Choice Questions) and the students are tested on their conceptual understanding.  Although you don’t get the opportunity to work on demo projects here, you certainly get the chance to solve case study questions in the exams. Further, you cannot carry a scientific calculator in the exam. But, you are definitely allowed to do rough works in MS Excel, OpenOffice or digital calc on the given desktop in the exam hall.

The NISM certification exams majorly focus on the practical understanding rather than emphasizing on mugging up theories. The best feature of these certifications is that the course modules are updated in every year.

How much time does it take for the completion of a NISM course?

In case of a NISM certification examination, you don’t need any significant amount of time to complete the same unlike CA, CFA, or MBA (Finance). Practically speaking, you can book your exam slot at any time. However, it is recommended that you should prepare for at least two weeks to a month before taking any module exam. This is because when you register for an exam, you get the study material covering a minimum of 100 pages which needs a decent time for complete reading.

If you are only looking to clear the exam, you can do the same by referring to the mock tests of private institutions. But, if you are looking to gain knowledge of the financial markets and clear the exams with distinction marks, you must study the workbooks given to you by NISM.

What is the registration fee to be paid to opt for a NISM certification exam?

The registration fee for any exam is pretty reasonable in nature. Here, you don’t need to pay over 30 or 40 thousand rupees to write a semester of MBA or a level exam in CFA.

Today, you can register in a NISM exam for as low as Rs 1200. The module exam with the highest registration fee is Rs 3000. Whenever you are enrolling for an exam of NISM, you have to pay the required fees. If you are unable to attempt that exam or fail in the same, you have to pay the same fee again for re-appearing in the exam.

How’s the difficulty level of a NISM exam?

The difficulty level of the NISM exams is between average to moderately high. For some exams, the contents and way of testing could be more difficult than the rests. The NISM Investment Advisor Exams (Level 1 and 2) contain relatively more practical contents as compared to the other courses. On the other hand, exams like the NISM (Series VI) Depository Operations Certification Examination contain a very high share of theory portion in their syllabus.

In order to pass a module, you need to secure a minimum of 60% score in most of the module exams. Besides, these exams come with negative marking of 25% per question. A very few exams like NISM (Series V A) Mutual Funds Distributors Certification Examination have a minimum passing marks criteria of 50% and also they don’t have any negative marking feature.

Conclusion

NISM exams are definitely one of the best in the industry if you are a fresher and willing to make a career in Finance. These certification exams are sufficient to give you an initial push in your career. They are strong enough to add a few keywords in your resume and make it look better than your peers. But, you must understand that clearing these exams are not going to make you stand at par with the jobseekers having CA, CFA, FRM or MBA (Finance) in their portfolio.

Nonetheless, in case you are looking for a job after graduation, these courses can help you in getting shortlisted on India’s top job websites. It is easy to start your career as a Mutual Fund Selling Agent or an Equity Dealer clearing the required NISM exams. But, if you are aiming for a career in Portfolio Management, Investment Banking or Fund Manager, you should look for the premier courses in Finance.