Do you remember owning a piggy bank when you were a child? Am sure we all have. It was such a simple way to save bit by bit or literally coin by coin for that dear gift we always longed for!
The idea behind evoking this memorable childhood habit is to emphasize that money is important and has been taught to us since we were kids.
Money is incredibly essential as it can provide protection and financial security to you and your loved ones. We require money to pay for all our necessities including housing, food, medical expenses, and quality education. You don’t necessarily need to be rich to pay for these things. You just need enough and with careful planning, even a small corpus initially can take care of your expenses all your life. Money gives you freedom, security, and the ability to pursue aspirations.
Even though money is important, very few feel comfortable talking about it. So, let’s break this social stigma and discuss a few important things about money that you should keep in mind before you start your investment journey.
One should have a “no spend” day every week to avoid making unnecessary expenses out of impulsiveness and save money.
Spreading your risk enables you to reduce the likelihood that the performance of a single investment will be reflected across your whole portfolio.
One should not only think of saving, rather one should satisfy their needs and also fulfill one’s wishes keeping the rule in mind. A flexible budget is considered to be more relevant and make the process easier during the transition to new phases of life
If a person starts thinking of planning for retirement at the age of 50, it would be very difficult to generate enough income even with the investment of a large corpus.
As the fixed deposits in banks do not give an interesting interest rate, the money for the emergency funds should be invested in a high-interest paying saving account, money market, etc. which allows the quick withdrawal of money.
Conclusion: Money is important and it is therefore imperative to understand how can money that you earn can better work for you in future. Knowing these simple and useful hacks can not only help in increasing the savings but also help reduce unnecessary expenses. Keep in mind that it is your responsibility to put your money to good use to create a better future.
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