I have done exactly like this for the fees of my children. Just opened RD twice a year so that one matures every six months and paid semester fees. It was a little bit difficult to pay monthly installments from a single salary but it was the only way and it worked well for both children. After education expenses are over I started investing in MF with the same amount LS not SIP but with discipline and achieved good corpus till retirement.
Great video Sir. The itchy feeling is the biggest problem and it is most common in people, especially in the social media age. That's not all it is against the financial principle 's Defer commitment" . This is my personal view
As a practice, I generally keep 15-20% of my take home salary in my salary account, which I only use on an average 10% of that value every month. The remaining amount I usually keep it there to accomodate any unexpected expenses. If there are no unexpected expenses, a portion of this will again go back to my investment pool
I have used the same method for paying my premiums parking my money monthly in Recurring deposit... with this video now I came to know that this type of investment as Revolving Fund.. Thank you sir. Very informative
Post Office and banks offer Recurring Deposit (RD) Accounts. They automatically transfer a specified sum from your savings accounts to RD account. Duration of the RD accounts ranges from 6 months to 10 years
