Pocket Money - SEBI Investor Awareness Website - Securities and ...

Smart Money TipsTips for saving:• Save before spending: Whenever some money gets into your hands, from a jobor your allowance or whatever, take your savings out immediately, beforespending any of the money. The beauty of this system is that once you've removedyour savings, you're free to spend the rest.• Negotiate with your parents. This may or may not work for you, but it's wortha shot. See if they'll "match" your savings, in order to encourage good savinghabits. That is, if you save Rs. 50 in a month, then suggest your parents thatthey put an additional Rs. 50 in your bank account as a reward.• Consider the "opportunity cost" of purchases. Opportunity cost essentially refersto the cost of giving up one alternative in order to get another. If you are thinkingof buying a pair of shoes worth Rs. 500, think how much you can gain by investingthat amount over a period of 5-10 years. After having considered that if you thinkyou must buy the shoes then by all means, go ahead and buy them.154