Never keep all your money lying idle

Her money was all in the bank, waiting to be claimed by a credit card. It was that simple.

Now, if the money was in a bank deposit, it would not have made the buy impossible, but just a little inconvenient.

Or if the money was safely disguised in some company bonds or shares, she would probably not have given the outfit a second thought.

Don't keep all your money accessible. Keep it tucked away for future use.

Back to her. Since the holiday was a year away, well, the money could be tucked away in a one-year recurring deposit.

This means, every month, a small portion of your income goes into a fixed deposit. This could be deposited either at the post office or the bank.

From the Rs 7,000 she saves, she could have put Rs 5,000 in a recurring deposit and the balance Rs 2,000 could be accumulated over the months and put in a mutual fund or in the shares of some company.

Since equity is a long-term investment and she was not considering a home for some time, this money could be saved for her home.