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How to Make Your Money Work in 2021?



July 02, 2021

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How to Make Your Money Work in 2021?

There are so many moments in life when we wish we could be more articulate to say things our minds so wonderfully conjure, so we can put our points across more clearly and express without having to miscommunicate. The demand for one thing gives rise to ideas and alternatives.
If the question is to make your money work, to save, to make choices that always work in our favour, is a ship that will not always sail on still waters. There are a gamut of websites, advisors, and professionals, and experts who will give you thoughtful, useful advice for putting your money in places where the returns are unimaginable. However, to get to that point, you need a friend, a direct friend who always gives you sane advice, so when you go to them asking for advice to make your money work, they will have one thing to say, “just don’t spend.”
Given the times we live in, that advice is gold. In fact, the advice works regardless of the times we live in. Not spending is so important. Sometimes the most simple advice turns out to be the sanest one. Amidst fulfilling our commitments, we draw a blank when it comes to saving and making suitable investments. The beginning is always the difficult part. What you do in the first five minutes after you get the thought, counts. It is at that moment we realize the strength of our true potential. You may want to empty your wish list or even wish to buy the T-shirt that you saw on Instagram.
Let us show you some ways that can actually work for you.

1. Play catch with the algorithm

Play catch with the algorithm

Yes, seriously. Social media has the ability to swing elections. A simple meme can land people behind the bars these days. The thing we think will have the least effect on us is usually the thing that ends up taking the most out of us with it. The first thing to do while taking up a new habit is to teach the algorithm to adapt to it. In this case, it's the money.

Also Read - Why should you invest in Bonds?

If you wish to save or invest money, ask google, watch videos, download apps, follow handles and pages/people that share ideas on investing. Feed the algorithm so it works in your favour. Instead of searching for things to buy, search for different ways to make money work in 2021. You are leading it to show you the right direction. And the longer you stick to it, the better the suggestions and feed gets. Lastly, the thought never leaves. You are thinking about taking control of your money all the time because of a simple alteration you made in your search. Make it what you recommend.

2. Spend only what you have.

Spend only what you have
It is noted everywhere, “We buy things we don't need with money we don't have to impress people we don't like.” The super popular quote from the Novel The Fight Club, it speaks volumes about this generation and its habits to grab opportunities that offer easy hand outs. We do not realize what goes in return is more than what we actually took. We are slowly getting ourselves in the habit of eating more than we can chew and eventually fall prey to loads of debts and piled-up interest.
Hence, the only way to cut down expenses is to avoid credit cards or at least use them when it is utmost necessary. When you don’t spend the money you do not have, you are actually making financial goals to exist, a business you can think of when you have saved enough, and possibility of getting married when the time is right.

3. Invest your money

Invest your money
When you finally get into the habit of saving, investing becomes a possibility. Depending on factors such as age, gender, lifestyle, financial goals and you can actually carve up a financial plan that’d make investing interesting. Traditional ways to invest your income are fixed deposits, mutual funds, equity, and golds. Whichever you choose, tread lightly.

a. Fixed Deposit:

Fixed deposits provide assured returns. The investment alone ensures you will receive the interest rate that was promised at the time of decision. However, fixed deposits are not inflation friendly. For instance, with the current inflation rate of 5.52%, if you invest in fixed deposits with the interest rate of 6.50% then the returns you have earned is only 0.98%.

b. Mutual Funds:

Mutual funds are yet another portfolio builder. Investors use the mutual fund investments to earn higher returns. In the wake of earning higher returns, we often overlook the charges involved in investing. Right from Management fees to GST and everything in between. There is a cost involved in everything. You pay commission to the agents or distributors unless you decide to invest through AMC (Asset Management Company) directly.

c. Equity:

Equity investments are for those with an appetite for high-risk investments. The amount is invested in either stocks or equities. The performance of an equity is determined by the movement of the market. One such example of equity investment is shares. They are listed in the stock exchange like National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Given the volatility of the market, waiting out is the most advised guidance given to the investors.
Losing money every year due to inflation, stock market’s erratic behaviour, or paying overhead charges on your investment is not ideal when the end goal is to make your money work for a better tomorrow when you are aiming at bigger goals. Not sitting with your hand on your head as you see your initial investment being taken away.

d. Gold:

Gold is inevitably the oldest and the most fallen for investment of the country. It’s reached to a point where it is ingrained in our culture and now has its own sub-culture running parallelly. Owning amounts of gold is a matter of pride in India. If someone buys gold, they seldom sell it. Since selling of gold is a sign of poverty in many traditions, it is always upgraded into new designs.
It has been the heartthrob for centuries now. Indian families do not buy gold for its resale value or at times don’t care about the price, for buying gold is thought to bring good luck and buying it on a certain day during a festival is considered to be auspicious and attract prosperity. It is safe to say that Gold is the most popular form of investment after fixed deposits.
Speaking of the gold market, the gold price in India has been most volatile since January 2021 and the month of June was the most dramatic. Although gold is the best investment to liquidate, the price will always be that of the day, and based on the irresoluteness of the Indian Gold Market right now, one should refrain from making any hasty decisions.

Also Read - Why there is an Importance of Bonds in your Portfolio

On top of that, if you choose to buy gold from a regular dealer, you may have to check the authenticity which is time-consuming and with reputed dealer, you will have to pay a premium over the price of the gold price.
All in all, putting all the eggs in one basket is not recommended at this juncture, considering the movement of the market. The most common mistake advisors make is completely brush aside bond investments while building an investment portfolio. Technically, bonds investment should not be less than 35% percent of the total investment.

Refer to the graph below. A well-balanced portfolio comprises bonds, mutual funds, equities, gold according to the movement of the market.
Invest your money
Let’s understand the role bonds play in your portfolio.

e. Bonds:

To make investment more interesting and steady, diversify your portfolio with fixed-income securities such as bonds. Although bonds offer less liquidity and a low-risk strategy, it is an ideal place to park your funds till the market gets it act back together. On top of that, you earn interest, which is more when the interest rate in the market goes down.

Some bonds are inflation-linked and government backed, so the risk of default is close to zilch. Also, its interest is not derived by the company’s performance or the market’s performance because they are considered as debt instruments which companies are liable to clear even during the time of insolvency. The investor will get the interest as per the agreed terms and at the end of the maturity, the amount invested.

Bonds can be purchased directly from issuers, which are also known as primary markets. The bonds then are traded in the secondary market by investors using the interest rate at the time. There are several services and platforms for trading of bonds. All you need is to complete your KYC once and get started in easy steps.

Log into Bonds India and register yourself as an investor and start investing in fixed-income securities today.

  • Bonds

  • Fixed deposits

  • 54 EC bonds

  • IPOs

Bonds:- Bonds are debt instruments issued by governments and corporations to raise money from the public for development purposes. The investor earns periodic interest and, at maturity, gets the invested amount back.
Fixed Deposit:- Something most Indians are familiar with. It is the go-to investment for most families and individual investors. Get attractive interest on fixed deposits on Bonds India.
IPOs:- Initial Public Offering, when a privately-owned company wishes to go public, they roll out IPOs on a stock exchange for people to invest.
54EC Bonds:- 54EC bonds are issued by the central or state government to property owners who have sold their property and earned capital gains. It provides capital gains tax exemptions under the section 54EC of the income tax act.

Also Read:- Why there is a need of Covid Bonds in India


Bonds are safe. Be it government or corporate bonds. Government bonds offer low interest but have no risk of default. While Corporate Bonds are high risk with high returns. Therefore, buy the ones that have high credit ratings. A credit rating of AA and higher is considered to be good.

Whatever you are doing, having an initial plan is important. Setting goals makes the process easy and less tedious. Goals keep you motivated. They help in making other bigger goals and keep a curb on your expenditure from time to time.

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I do this little thing. I give my money to my Mom. She knows a lot about investments as she works in a bank, but I will show her your blog and check if she agrees.
There are many ways to make your money work. I know none of them :) Good blog though.
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