4 ways to Handle Idle Money Like a Pro

What is the fuss?

We all, at some point of time, have idle money at hand. There is no vacation planned, no gadget we want to buy, no wardrobe refresh to be done. And more importantly, the stock market is too expensive to invest. What do you do as a retail investor? Well, you wait it out, till market corrects, and gives you an opportunity to invest.

Now, waiting it out is a difficult game to excel at. Most of us are not able to do it well. With idle money at hand, you just might upgrade your jogging shoes, buy your loved ones an expensive gift, or — just use it up. The end result is, when the market corrects, you do not have a war chest to deploy.

This is the point I address in this post. How to handle your idle money like a pro, and build that investment war chest. Lets get started.

What is Idle Money?

Money, lying idle, is idle money. Money that you do not need at the moment, and not in the next 30 days, is idle money. Some sources of idle money, dependent on the type of income sources you might have, are below.

Salaried Person’s Idle Money

Lets say you get a certain amount of salary every month. 60% of the salary you spend in household expense (rent, bills, food, weekends etc.). Remaining 20% you…