What is the Importance of Saving?

The desire to have wealth and a better lifestyle is a natural and common instinct. You want to spend a little more every month a few years down the line than you are now. You want to afford more expensive assets, have a better bank balance. However, all of this only starts with savings.

If wealth is akin to walking, saving is the leg. All your dreams, wealth goals and aspirations depend on your ability to save and preserve a part of your earnings.

Why Save Money?

Savings enable you to improve your future, whether it’s about lifestyle or safety. Here’s what your saved money will enable you with:

i. Peace of Mind
ii. Brighter Future for Children
iii. Better Lifestyle
iv. Safety from Contingencies
v. Happy Retirement

How to Improve your Savings?

With so much to do in the little amount of time, your first few pay cheques may just disappear in thin air. However, the trick is to make every single cheque last longer than it’s supposed to and here’s how you can do it:

1. Create a Budget

Before you start chucking out the cash from your bank, make sure to know the limits of every expense. While you will find certain expenses less flexible than others, you still need a lot of control over the spending. A budget will make it easier for you to spend within boundaries.

2. Set a Target for Savings

Since your aim is to improve your savings, why not set a savings target for the year. This is to ensure that you save something every month, even if small. Targeting a specific amount for the year will ensure that all your windfalls are saved before they are spent.

3. Have Adequate Insurance

Emergencies don’t wait for anyone or anything. Even a minor emergency like a weeklong hospitalisation can affect your earnings and even savings. Life insurance covers like Mediclaim and health insurance plans will save you from such expenses.

4. Track Expenses

Tracking your expenses allows more awareness about your spending habits. Your awareness can enable you to alter the habits or develop new ones which help you save more than spend.

5. Credit Card is for Experts

If monthly budgeting, meeting savings targets and tracking your expenses is hard work for you, a credit card will possibly be less useful. A credit card is an easy instrument to use. However, you should be careful about when you use it, and always ensure that you can pay it back.

Once you start saving money, a number of investment opportunities will open up for you. With the investments, you are finally on the way to achieving your dreams and goals.