How to Save and Grow your Money? Financial tips to follow
Harleen last edited by
Looking at the rising cost of living and changes in lifestyle, we can't deny that earning and saving money is crucial. While money cannot buy happiness always but it can help to meet our financial requirements.
Important Financial Tips to Know:
Here are some financial tips or simple ideas to help you. If you plan wisely and systematically, then you can make your money work for you.
- Never Spend more than you earn, a golden rule to be kept in mind while incurring any expenses.
- Create a budget plan to guide you in your financial steps.
- Before you spend, pay off your loans. Firstly, clear debts with high interest rates like credit card bills.
- Whenever possible replace a high-cost loan with a low cost one.
- Investing in real estate is over-hyped especially when it is not for personal use.
- Retirement planning starts when you are young not when you are close to your retirement.
- Never underestimate the power of compounding, it's more powerful than anything else.
- Never underestimate inflation it can eat into your savings quickly.
- When your income increases do not increase your expenses in the same proportion.
- As with life so with your finances, always have long term goals. So, sit back and think about your future requirements and then set up your financial goals.
- Cash flow is important. Always keep an eye on it.
- Markets generally provide better returns in long term .
- If there is a market crash don't panic and go sell all your stocks.
- If you are married, discuss finances with your partner. Learn to manage your money jointly.
- Always have adequate health insurance. Health costs can leave a big hole in your finances.
- Do plan for a life insurance to safeguard your family.
- Do not invest in a financial product that you don't understand. Firstly, analyse all the pros and cons of investing in a particular option.
- Learn to invest in yourself and gain experiences. It could be in the form of education, sports, additional skills, as you like. They can make you more happy.
- Emergency funds are a must. Build a habit to put aside some of your savings as an emergency fund.
- Save before you spend, when you save just not save but invest wisely, when you invest do it for long term
- Don't forget to share these financial tips with your near and dear ones.
Anmol last edited by
@harleen That's quite interesting to know! Thanks a lot for giving nice ideas on saving and growing money. I have completed my studies and starting a career. Still a long way to go for reaching the financial planning part. Firstly, I need to establish myself and earn good enough. I'll definitely keep these points in mind.