DEBT WEDS SAVINGS PART: 3

SAVINGS

Saving is the part of the money that one sets aside for future usage. To be precise it is the part of the income which has been set aside for any kind of emergency or for goals like children education or for emotional spending or for buying a home or for expenses after retirement.

Various reasons why we should save and its impact on lifestyle includes:

1. FINANCIAL SECURITY: 

Yes! It can be a saviour from unexpected situations/expenses like job-loss, or other financial emergencies. Habit of savings allows you to handle these situations without falling into debt or financial hardship, avoiding stress & providing a sense of security and peace of mind.

2. FLEXIBILITY & FREEDOM:

 Savings allow you the freedom of selecting a viable choice and a control of healthy financial life without any fear about immediate financial crisis.

3. ESCORTING ASPIRATIONS: 

May it be your career change or starting a new business on your own, savings always extends its support to achieve your targets and goals

4. STEPPING STONE FOR WEALTH CREATION: 

Saving paves the way for buying house, from fixed income plans & to equity and even invest in newer options like Crypto currency etc. This decides your financial freedom in life, as there are assets which give different rates and have different levels of liquidity apart from volatility.

5. PLANNING FOR RETIREMENT: 

In one’s younger years they are supported by parents & and after that earning starts and goes on till retirement. Don’t forget, there is life after retirement where income is very less & may not meet your lifestyle. This makes saving more important than all other things.

However, it must be noted that Saving depends upon two things viz. Income & Expenses. In case the expenses are more, one need to workout how to get out this situation where “both ends barely meets.” You would have seen many people moved up from this situation and are comfortable now. Ask yourself how they managed! Many of them must be “DISCIPLINED”, having a budget & sticking to it and mastered the art of spending less to save money, with meticulous “BUDGETING”. 

1. In some cases, their income should have gone with promotions and hard work. Some would have attained the same when another person in the family starts earning. 

2.Few would have got out of income equal to expense situation with working for extra hours and having avenues to utilize multiple/part time work or a home based small business with small investment.

3.Some of them use very novel & innovative ways to move towards comfortable income to save more!!

Last, but not the least is saving is not just enough, but one should ensure savings earn you more money than Inflation

……To be continued PART: 4

The focus on the remaining  parts will be on meaning of wedding/marriage & how this concepts match up for debt & savings. I invites views to give their opinion, feelings & your questions, on these concepts now, so that I can try to include those focus areas, friends!