Save Money and Invest
“Someone’s sitting in the shade today
because someone planted a tree a long time ago.”- or
Saving $50 a week over 10 years will allow you to save $26,000, not
including interest, and like the tree it has taken years to grow, Warren Buffett,
As warren Buffett said in above the statement tried to explain the importance of saving and how a significant investible corpus can be created from small but regular savings. No one is born knowing how to save or to invest. Every successful investor starts with the basics. In the difficult economic and political times, saving money for a bad time or investment is must. Planning for the future is essential for financial security
Do you remember your parents told “Money doesn’t grow on trees”. Yes, they were right. Actually it grows on other money. It takes money to make money. Here, we will try touch upon two tolls i.e savings and investment & will see how can your money works for you.
Step – 1 What is Savings & investment
Saving is generally short term goals for any individual. People try to save out of his daily routine expenditure & save it in banks & withdraw it when you need it.
“Investing”is longer terms goals. Depending upon your risk profile, you invest for shorter or longer period of time. Generally investments can earn a lot more if you hold it for a longer period of time.
|Certificated of deposit||Stocks|
Step – 2 – Make Financial plan – Before doing financial planning, one should list his financial goal, his financial status (income and expenditure) & then find out money for savings or investment. You need to look for various ways to cut back on your daily expenses and try to save more.
Step – 3 – Small money add ups to big money – Try to save from each and every source. Cut down your high costs debt, credit card outstanding. Once you paid off those credit cards, try to save and invest. Other ways to save are like cut down a) travel b) wedding or family events c) home improvement etc.
Step – 3 – Make money grow – There are basically two ways to make or grow money. 1) You work for money 2) your money works for you. Your money can works for you by
1) Your money earns money
2) Buy something with your saved money which may improve / increase (value) over a period of time. It may be small but regular/ one time. Systematic Investment Planning (SIP) is one of them.
Step – 4 – Protect Your Money- Finally, once you started investing, your need to protect yourself from any fraudulent deal. Every country has the investor protection agencies. One may get in touch with them for more information about scheme
Save Money and Invest is mantra of any wealth management. Saving money is the first step and it is the foundation of all financial success. Small but regular investment can give you financial freedom over a long period of time.
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