Top 3 Money Locking Hacks

Even though my rate of savings have been on the higher side for the last few years, I have been constantly finding avenues to increase the rate of savings. I could save in liquid funds but that would not amount to long-term savings. Ofcourse there are people who can hold money for more than five years. I am not that kind of person. My objective is to increase the savings and eventual returns where the funds grow for a longer time horizon.

I have come with top 3 areas where I plan to increase my monthly contributions going forward. The idea is not to live a frugal life, it is just to avoid wasteful expenditure.

Idea 1Increase Voluntary Provident Fund Contributions

We all know about it, don’t we? Just speak to your employer and request him to increase the contribution by your desired percentage. Trust me, the amount might look small to you for now, but it will eventually snowball to a huge number over a decade. Interest earned is tax free. Generally the interest rate is higher than the rate of inflation. Withdrawal is tax free after five continuous years of service.

Idea 2 – Maximise your tax saving contributions in ALL AVENUES

We all contribute Rs. 1.5 lakhs for 80C tax deductions. But have you ever thought that you could save Rs. 1.5 lakhs in PPF every year (locks your money for 15 years, i think its a great product for debt part of your portfolio). You could contribute Rs. 1.5 lakhs or more to ELSS funds. Let’s just say another Rs. 1.5 lakhs gets locked in for three years. That’s a total of 3 lakhs each year locked in for a long period.

When funds are locked in for such long periods, you tend to forget them and they eventually stay in the fund for longer period of time. MORE COMPOUNDING.


This is a big big idea. We tend to forget how we used to live when we accumulate more wealth. We are blinded by the riches and by our neighbours. We forget our roots. If you want to improve your lifestyle, try to keep it at a ratio of less than 1:2. For every increase in income by 2 units, your lifestyle spending improves by 1 unit only. That ways, 1 unit increase in income can directly put to better use.

What do you guys think of these ideas? I am not asking you to live on pennies. There are lots of benefits of avoiding wasteful expenses. Long-term benefits. Environmental, psychological and societal benefits. We shall talk about those some other day.

Hit me up in the comments or send me an email and let me know if you agree or do not agree with me.

10 thoughts on “Top 3 Money Locking Hacks”

      1. ok, i have read your blog titled ” Take ownership of your money “.
        that covered really good and practical point like not having or not upgrading your car, avoiding expensive dinners, living at less cost.


  1. Completely agree with the Lifestyle Inflation, unfortunately i was party to it for a few years. Over the last two years specifically I have worked hard on cutting it down, and I am already seeing the rewards of it.

    Never thought of PPF as a NRI but actually might make sense on the debt portion for the long term.

    Regards, Kunal >


  2. I’m not sure where you are getting your info, but great topic.
    I needs to spend some time learning more or understanding more.
    Thanks for great info I was looking for this information for my mission.


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