How To Start Saving Early And Make Your Money Work - As is the wont with almost all of us we always put off decisions related to money for a later date especially when it comes to money. The most common theory is that we need money for current needs and we have no money to save.
How To Start Saving Early And Make Your Money Work
By aman sood
May 4, 2009 - 9:26:19 AM
As is the wont with almost all of us we always put off
decisions related to money for a later date especially when it comes to money.
The most common theory is that we need money for current needs and we have no
money to save.
Let me try to explain this in a different manner. Each year you get a salary
hike but even then we do not have enough money for saving because we expand our
needs accordingly. If you get a bigger pay hike we go on and buy a big car or a
big house or an expensive carpet instead that extra money could have gone for a
big retirement corpus.
It is this spending dilemma that we deal with which causes us to not have
enough money in our saving accounts. The more money you have in your savings
accounts or retirement accounts the more you will make year or year on that
money. This is literally the basis of making your money work for you.
The single most important tip that you need to take is to have an automatic
electronic transfer of money from your salary account into your special savings
account a day after your salary hits you account. That way you will have
absolutely no way to touch that money and you will be able to save that on
autopilot. Think about it as having that hidden away from you for good.
Then the next thing that you need to do is to go to a financial planner and
make sure that you get your priorities and accounts in order. That way you have
absolute grasp about finances and the best avenues available o invest. In fact
if you do not intend to delve into these let you financial planner help with
that. This will go far in terms of setting up the accounts and other financial
instruments in order for maximizing the return potential of the money.
The other common sense thing to do is to have a plan in mind for your future.
That plan should include a goal about the financial safety of your children or
buying a house as an investment. With a goal in mind you will be all set to
achieve with a written down plan of action. This goal will help you reduce your
money spending habits.
The more money in the bank and for more time the more it will earn for you in
the future.
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