Ccash management that you must know

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The Birla Sun Life Cash Plus fund is an excellent savings option that builds your money into a large fund by investing in high grade instruments.

As mysterious as it sounds, ‘cash management’ is a term that can be adopted by every single person, young or old, unemployed or salaried, in their daily life. Cash management is simply a set of financial behaviours that one must inculcate in order to manage their finances better and have a greater control over their money. It varies from person to person, based on one’s current requirement, spending patterns and future financial goals.

However, cash management is a crucial exercise that one must mandatorily follow in order to reap the benefits of sound fiscal planning at a later date.

The first step in the journey of financial freedom is to start saving money adequately for the future. Saving a part of your income every month results in a large corpus for a later date – you can put this money to a variety of personal and professional uses. Right from making the last repayment on your home loan to paying for your children’s future education, your savings corpus can help you in times of need. You can set aside your money in a savings bank account. Once it accumulates into a large enough corpus, you can consider investing it to make the sum grow to an even larger corpus.

One of the key principles that wealthy people follow is to make the best use of available investment instruments to augment their wealth. All of us have the same tools at our disposal when it comes to investment and saving, but only a canny few have the foresight to take the plunge and secure themselves. If you are looking for one of the most excellent cash management solutions on offer at the current time, you could consider the Birla Sun Life Cash Plus plan.

This is a plan that aims to save your money from being eroded by emergency expenses or unnecessary spends. Once you invest in it, the scheme invests the money in safe instruments like treasury bills, commercial papers, non-convertible debentures, Repo and certificates of deposit. This means that the money is invested over a wide range of instruments, thereby reducing the risk to the investment even further.

The returns on investment in the Birla Sun Life Cash Plus scheme are excellent. Your funds do not sit idle in your savings bank account, growing by a very little margin every year (at 4% interest). Instead, the plan gives much more augmented funds in a low risk fashion. Thus, it helps further your cash management goals in a systematic manner.

Investing in the Cash Plus scheme is easy: once you sign up, the insurer opens an account for you to deposit the funds. You are issued with an account statement to record subscriptions and redemptions as laid out in a passbook. You are free to add to the funds in the scheme or withdraw a part of them. In some cases, you are allowed to maintain a zero balance account for a certain period of time.