The power of small

Home economics is no stranger to ‘The power of small’. Yup momeys, I am referring to the small savings we manage every now & then.

We have all had situations where a little fortune out of our savings kept aside bailed us out of unforeseen situations. A medical emergency, unexpected wedding or birthday shopping, unplanned purchases for home or self, numerous ocassions can pop up when small sum plays a big role.

This post is to draw attention to a fast gaining investment feature called SIP – Systematic Investment Plan.

Understanding SIP

SIP or ‘the good EMI’ as it has been fondly called is a sure shot way to make your small savings grow. To give some background, SIP is a feature offered to MF investors. Mutual Fund is a collective pool of money in which various investors put their money for returns. This pool is managed by experts who in turn invest it further to fetch gains for their investors. Now to invest in a mutual, there are 2 ways – lumpsum which you can do one time and second is SIP.

SIP is any fixed amount (starting Rs. 500) that can be invested every month on a set date into a mutual fund scheme of your choice.


Now comes the real part. SIP is increasingly being used by investors because of 2 main reasons:

1. Flexibility to invest small sums over a period of time.

2. Great returns due to the power of compounding.

Compounding Advantage

An investment has to be given time to give worthwhile returns. And when you invest through SIP, you turn little sum into big money. As you invest month on month, your base increases – sum you are investing plus the returns keep getting added. This is how you benefit from compounding. To explain better, suppose you put Rs. 2000 every month in SIP for 10 years. The principal you have put is Rs. 2,40,000. With a modest rate of return of 12.5%, you will have Rs. 4,78,763 at the end of 10 years. You can use this calculator to find out more:

This supersedes any Recurring deposit returns you will make over long term. Mutual Funds are seeing unprecedented interest from new investors and SIP is becoming a favourite. But you don’t have to follow anyone for the heck of it. You can do an SIP for the sheer benefit it brings. Just resolve to make small savings into big as a first step and rest will fall in place. Start today!

Don’t lax, pay your tax

Momeys.. Bet your lists are going berserk with holiday season approaching. For a lot of us, travel would be on cards. A flurry of hosting to playing guests at weddings & parties will take up time. Add to that the pressure of turning out your best – a few salon visits & shopping trips – there goes any possible free time out of the window. But no one’s complaining. After all December is a time we all love waiting for.

Now having looked at literally the brighter side 😊, this post is to remind about the money that shouldn’t fall prey to taxes. We have seen from very close quarters, fellow momeys have heavily procrastinated, only to loose money to tax.

November-December can be busy time but it shouldn’t come at the cost of tax planning. For those in mid to high tax brackets, this is a great time to take stock. Here are simple steps to approach tax planning:

1. Calculate your year’s taxable income. For eg. If you have rental or interest income in addition, add it to your salary.

2. Determine your tax bracket

3. Check if you have any deductible investments like Home loan payments, life insurance, PF contribution, PPF etc. Under 80C, you can get tax deduction upto 1.5 lacs.

4. Check for any shortfall in the deduction limit of 1.5lacs. If the tax free investments are not totalling to 1.5 lacs, you need a tax plan.

5. Revisit your financial goals. If your money requirement will be soon, you will have to look at lesser tenure options.

6. You believe in No risk – No gain? Momeys if you want utmost safety of your capital, choose safe fixed income options like PPF or FD. If minor volatility doesn’t bother you, you can take some risks with market linked options like NSC, ELSS.

7. If youYou want higher returns, then zero down on NSC or ELSS. (ELSS would be our choice)

8. Save your investment proofs in a folder. While filing taxes, you will need the proofs handy so ensure you keep them easily locatable.

9. Invest because today is the best day. The sooner you finish tax planning and have your choices ready, go ahead and make a purchase. Often delay in investing leaves you in lurch when employer’s HR asks for proofs. For lack of proof, they deduct tax from salaries. You could totally avoid such rude shocks.
In the end, all we can say that is every money cautious person is taking stock of their tax liabilities ahead of the spending season . Are you too momey?

Momey hacks to up your Productivity

Taking breaks will never be a formula forgotten. It peps up the vigor while breaking monotony, enriches with new experiences thus promulgating productivity. Actually the key to keep going harder is taking sufficient breaks. 

I, too was lucky to enjoy some travel after a busy festive season. Of course the work backlog had hit the roof owing to festal spirit in October. And then an impending holiday in first week of November made things more frantic. But the best part is I learnt some productivity hacks to mange all the demands on time before taking off. Some that make it to the top of my list are here.

1. Slot your ‘Mail Time’

Mails constitute a fair deal of the work. I usually would slot mornings & evening for an hour or two everyday. This keeps me abreast of all the work, ensures same day responses and keeps things under control.

2. Delegate, delegate, delegate

Something I learnt early in my professional life, a good manager is able to get things done from resources. As a momey, holding onto all the work can drive you to breaking point.

3. Lunch hour in beast mode

While breakfasts are to be like a king’s, the lunch can be a quick affair. The work momentum doesn’t get broken and helps you wrap up your day in time. For young moms, late hours is a toughie. All the more reason to crunch lunch time.

4. Embrace Digital

I used to be a very offline person until I became a Mompreneur. Now presentations, number crunching or writing, I manage most of my work on mobile. Plus, apps are a whole world of convenience. From ordering groceries, to managing calendars, banking & investments, keeping tab of health parameters – everything is done easily, systematically and on the go.

5. Follow a Passion

Be it the clickety clack of the camera, or the soulful music, fitness or gardening to nurturing the bibliophile in you, it’s important to be passionate about something.  Indulging in an activity of your choice is paramount to keep productivity levels high. Studies have shown that people engaged in creative hobbies performed between 15-30% better at work. (Read

6. The ‘2 minute rule’

For newbies, the 2 minute rule’ says finish all your under 2 minute tasks there and then. This rule works brilliant for us moms who struggle with backlog. You close on a lot of small tasks that can become a nagging pain if left unattended.

Go ahead momeys and pack a punch!

Have you planned for your child’s future?

Diwali storms up the social whirlwig; food, dress up and meet up is all on cards. The usual worry of how to keep the kids gainfully occupied is thankfully averted during such catch ups. They find playmates and enjoy their time, which for us parents is a huge load off.

 This diwali, we too had some great fun socializing. A new parent couple among our friends got talking about how responsibilities are keeping them engaged. Life has been very different after their child’s birth and one responsibility they can’t get a handle on is money planning. More discussions among the group led to finding out that it is a rather widespread question, parents are grappling to figure. It obviously became imperative that a blog post covers the topic of planning our children’s future.

Before setting out on a task, we have to understand what is it going to achieve. So parents unanimously voted Education and Marriage as goals to work for. Both are gargantuan expenses and require disciplined action. Depending on your age, children’s age, your risk profile, choice of education field and costs involved you will have to ascertain a sum required after a said amount of time. We are mentioning the tools you can use for investing. 


When you keep a horizon as long as your child’s growing up years, SIPs in small to mid cap funds and balanced funds are your best bet. They let your money gain with the benefit of compounding year on year. For those with some risk appetite, consider funds which invest a considerable part in equities of growing companies. Balance funds are slightly less risky because they have equity and debt (such as term deposits, bonds) instruments both.

For the uninitiated, SIP is Systematic Investment Plan better known as ‘the good EMI’. You invest every month a fixed sum as small as Rs. 500 into a mutual fund. The fund is managed by a team of experts and they in turn invest in various instruments to generate returns. We have more posts on MFs coming momeys 😄

Sukanya Samriddhi Yojana
This has to be our favorite for those who have daughters. The scheme encourages parents to build a fund for the future education and marriage expenses for their female child. The scheme currently provides an interest rate of 8.3% p.a. (new rates are likely to be announced). It allows deposit upto Rs. 1.5 lacs in the name of your daughter every year and it matures when she reaches 21 years of age. You can either choose monthly or yearly contributions. Momeys should absolutely consider monthly contribution!


Well it’s not our favorite, but we have to bring it into discussion to give you our reasons. If you search online for children investment options, you will find a gazillion ads by Insurance companies luring you with child plans. What should you do? Well our advice would be to ignore. They are mostly selling ULIPs to you which are far inferior in returns to mutual funds and charge expensive premiums. You might as well directly invest in MFs through SIP.

However, we have to add that you must take insurance, as life cover to safeguard your family and children in an unlikely event.

Gold ETFs

Gold ETFs are exchange traded funds that passively track the performance of Gold Bullion. These funds buy gold with investor’s money (on the behalf of investors) and convert it into units. 

Gold Exchange Traded Funds can also be an option if you want to invest for using them during marriage. These are traded on stock markets and are a great alternative to physical gold.

With children, you wouldn’t want to take a chance. So invest today for their tomorrow.