Are you thinking of doing savings? Noble idea mate! But don’t know how to save? Running short of budget? Do you think you need a better job to have savings? Nope. That’s not how you save. An ordinary sentence from an extraordinary man will make it easier for you.
“Do not save what is left after spending; instead spend what is left after saving.” – Warren Buffet
You can argue with me, but it won’t be wise to argue with ‘one of the most successful investors this world has witnessed’. Thinking of how you do it? Well, there I can help you a little. The first and the basic process is a bit tough though. Are you ready to do it? Cut down your extras. Yes, you heard me right. You have to sort out your necessities first. Any extravagant lifestyle that you cannot afford is a strict No-No. Even if you can afford, it will be sensible to avoid them.
How And Where To Do Savings
Now only saving your money won’t help. If you are thinking of having a house, or early retirement, you need to plan something big. How? You have to multiply it. Otherwise, it won’t be enough, at the end of the day. And here lies the challenge. Where to invest? How to invest? We are going to list a few popular and beneficial ways of having effective savings.
Savings Account And Other Banking Facilities
If you belong to the middle-class category in the economy of this society, this is the best option for you. This one is best for two reasons –
- You lower the risk of losing your money
- You can invest any amount of money you want
Creating a savings account is what most of the people do, whoever is involved in any type of financial transaction. But don’t just stop there. Most of the banks and organizations introduce special offers and benefits for their customers. Some are available all the time while few are introduced for a certain amount of time. Creating a recurring deposit account or any other type of beneficial schemes can return you a hefty amount if you invest properly as per your budget. For that, you have to be up to date to avail the best one at the correct time.
If you are thinking of something big, this is your area. Now as you know, nothing has been achieved without risk. The stock market has changed many beggars to millionaires, but the scariest thing is it has done vice-versa as well. So that’s something you need to beware of, the moment you enter this field. Over here, you need a lot to study on to start and then all you gain is experience with time. No book can teach you that. And even after all these studies and years of experience, things can go heavily wrong. And that’s the beauty of it that most people enjoy. It has been noticed even that, people have become addicted to this. The stock market, just like other things, has its pros and cons. So along with its immense range of earning and investing money, it’s equally beneficial and risky for savings.
That’s something perhaps most of the people are scared of. It’s not the Insurance they are afraid of, it’s the agents. However, choosing proper insurance is a really wise way of saving your money and securing their future. Ever gave a thought what happens what if something happens to you tomorrow? I wish you a long life and a happy future for your family, but it’s you who can help them. Somethings cannot be replaced, but financial help is something that will help them. Other than life insurance, any other insurance help you to recover the loss without paying the entire amount.
Other than these, there are plenty of other options where you can make some savings. You can start a side business or startup you can invest more in your business if you are a businessman. Even you can aim for shops providing discounts to gain the most out of your shopping. The thing is “If there is a will, there is away.”
Be Careful With Your Savings
Well, there is nothing bad about savings. But there is something you should be beware about. You can lose your savings too. So we suggest even if you are investing anywhere, use a part of your savings only. Not the entire. No matter how big the door is. It’s your greed that you need to control to stop yourself from becoming penniless. Also wherever you invest, check and invest some time on reading the terms and conditions. Don’t just sign believing what some person told you. Later, the papers and your signature will matter. Not his word. And always, approach legally (i.e. – with proper legal documents/ agreement and evidence with all the clause) whenever you are thinking of investing.
“A penny saved is worth two pennies earned … after taxes”– Randy Thurman