How to save money?

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We saw how the young generation forget/miss to save the money – “Where is my money“. Now let’s discuss on how to save the money in this article.

Before we start looking into how to save money, lets first understand why to save money in our life?.

When we talk about Money the first person it comes to our mind is “Warren Buffett“. He says, “Don’t save what is left after spending; spend what after saving”.

Keep the above quote in your mind, you will automatically start finding your savings. This will also help you from avoid spending money unnecessarily.

To be frank, no one in this world can help others to save or become rich. It is in their individual hand because no one knows how much each person and what kind of challenges they face in their life but I can help them how to plan.

The below points might help to plan to save unknowingly
Remember 60:40 rule as per the quote.
Assume if you have 10K, save 6K and spend 4K. It might work if the earning is sufficient if in case the earning is less you can make it 40:60/50:50/30:70. But later it should gradually move to 60:40 rule. If your earning good, then push to 70:30. If earning is awesome, still follow 60:40 and out of 40% take 10% to help others to grow or start a business or donate. As mentioned, money alone is not life it is all about sharing and helping.

Avoid Credit cards
The big culprit in our life is a Credit card. If you know how to handle you will survive else it will eat all your earning unknowingly. Then you will start adjusting in your above 60:40 rule.

Don’t put all your eggs in one basket
In general, people use to save their money in a savings account which is an okay idea but practically it is a bad idea because when there is basic need our mind will first push us to withdraw from the savings because it is easy to take and see how much we have.
Like that, if you are investing in the stock market dont invest all your money in the same/one company. Instead, split into a different company. Its okay if you get lesser returns rather losing in one shot. This is applicable for Mutual funds, FD, RD etc..

Understand what is savings account, FD, RD, MF, PPF, Stock market
Many people earning money but they don’t know the basic percentage that what each stuff gives a return. Due to that their growth failed or slow down to achieve their goal. If you plan know where to place your money it will help you to achieve your goal earlier.
Example: Assume RAJ & RAMU earning equally. RAJ put his 60% savings in RD where RAMU put his 60% in a savings account. Now if you look at it RAJ will achieve his goal quick because RD gives 7% interest where Savings account gives 3% interest.
The above is just an example. If you know which is giving what interest and duration etc.. you will achieve your goal quickly.

Dont feel about the past
Few people always look at others and feel bad that I should have done this long back. Always keep it mind, a god-given different role to play in this world so don’t compare others with you because all five fingers are not same.
Instead, feel proud that at least you come to know now and react immediately. Please note: Think 1000 times before you act but after that you should not think again.

Keep your surrounding happy
As mentioned, money alone is not life. Look after your family, friends, relatives, neighbours and colleagues because your life might change or get better ideas from them as well.

So now think and save the money. Happy saving !!!

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