To be brutally honest, saving money isn’t everyone’s cup of tea especially if you haven’t been taught so since childhood or have always spent your income recklessly without giving it a thought. What we fail to realize is the fact that money saved is always better than the money earned.
Financial emergencies can occur anytime, so if you want to abstain from worrying about a potential risk or loss and want to experience a sound sleep thinking you have enough money saved to face any kind of uncertainty, read below for some simple and feasible tips to save and invest your money the right way!
- Keep A Wise Record Of Your Expenses
This is the foremost step in the journey toward saving. Until you don’t have a written record of the expenses you make, you will never understand the problem you’re in. You should record each and every little expense that you incur in a day, week or month. You can also take the help of your balance sheets and financial statements for this purpose.
- Make A budget And Stay On It
When you succeed in making a proper record of your expenses, the next step is to make a budget and allocate a definite amount to each expenditure. You might even have to eliminate some thoughtless expenses and see if you can do without them. Don’t try and fool anybody by cheating in this step, as it is ultimately your conscience that you have to satisfy.
- Set Goals To Save For Something You Truly Want
Not a new trick for sure, but definitely something that works. We all have used this trick somewhere or sometime in our lives in order to purchase a gadget, luxury bag or even a car. These materialistic gifts act as superb motivators in the saving process. So always set your goals right and save your money to achieve them.
- Prioritize Your expenses
The next time you get the urge to buy something or spend somewhere, ask yourself this question first, “Do I really need this?” Or “Is it more important to buy this than the thing I’ve been saving for since months?” If the answer is yes, go ahead and purchase it but if the answer is no, you’re going just in the right direction. Prioritizing your expenses is a very crucial step in order to save more.
- Allocate Your Assets Judiciously
We know it’s a difficult task to resist the urge of spending and saving your money. But once you’ve done that, you also need to know where to invest your savings. If your goals are short term, you can open up a savings account or take a Certificate of Deposit from your bank that will freeze your money at a specific rate of interest for a specified time. If your goals are long-term you can consider investing in stocks, mutual funds, retirement schemes or other investment options.
- Stick To An Investment Plan And Get Yourself Insured
As they say, “Rome wasn’t built in a day”, the same idea applies when you enter an investment. Don’t worry about the everyday profits or losses, look at the larger picture and be patient enough to enjoy the profits of your investment.
You should also avoid expenses that make your pockets so empty that it takes years to fill them back; an inevitable step in this aspect is to get yourself insured.