BENGALURU: The demonetization step by the central government to curve 500 and 1000 notes has stirred the life of common people. People holding higher currency notes are in a hurry to exchange it to legal notes. The financial strategies of all of us changed over the night. However, this initiative by government teaches you many things which can assist you in making more concrete financial strategies. The Economic Times listed few takeaways from the demonetization drive.

The first thing it teaches is not to hold too much cash, but invest it in multiple places. Investing money in various schemes will assist you in effective utilization of that money along with the benefits of better income returns. The best way to invest money is in liquid funds, short-term debt funds, sweep-in savings accounts, etc. By holding cash, the purchasing power of money is not properly utilized. Decide to use cash only for small expenditure and for remaining spending use cashless transactions.

Teaching your child about the benefits of savings will help in introducing financial discipline. Gifting a piggy bank along with a regular supply will help in creating a habit of regular saving and an ability to figure out about own purchases. It will help kids in managing their finances and handling the crisis with better equanimity.

The central idea behind each financial plan is to spend money according to the budget along with saving money for the future. The limited cash flow during current cash crunch has prioritized sticking to the tight budget. Opting for cashless transactions is a better way to track spending. Going for mobile banking for financial transactions will not only provide ease to all transactions, but also decreases the time involved in cash transactions.

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