How to Save and Grow your Money? Financial tips to follow
- Asked By
- Updated On:28-Jan-2021
- Replies:2
Short Answer
Its always a thumb rule to spend wisely, save as much as you can, invest in long-term goals and live a simple life to have a financially stable life. To save and grow your money, you need to follow certain steps. Get financial tips to easily build wealth and become a rich person.
Detailed Answer
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. If you have any other important personal finance tips, do share them with us.
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Discussion (1)
Saving Rs. 5000 in 6 months does not need a lot of effort. Creating proper budget along with a few simple daily practices, reducing your debt and investing wisely is the key here.
Generating 1000 times returns in the stock market is highly unlikely but not impossible. However, through aggressive trading, scalping techniques, trading in penny stocks, strategies for trading, technical analysis and trading with the market trend, you could get the relevant returns you’re looking for, provided everything favors your decision-making in the desired investment opportunities.
The best stocks for college students to invest in in India are those with strong fundamentals and high dividend yields, such as Reliance Ltd., ITC Ltd., and Infosys Ltd.
Liquid funds, a type of mutual funds which invest in different money market instruments. The withdrawals from these funds are processed within 24 hours and that's why these are regarded as liquid assets. The fund manager gets flexibility to meet immediate redemption requests.
Investing in stocks can make you a millionaire, provided you follow the necessary steps. These include investing regularly, picking good quality stocks, and most importantly playing the long-term game rather than trying to make a million in months or a couple of years.
Navigating the huge selection of investing possibilities can be a difficult chore for middle-class people.There are a lot of options, ranging from mutual funds and fixed deposits to the National Pension System. This will give middle-class Indians a thorough insight to the finest investing strategies.
Who doesn't like to get rich fast? While there are several ways to do so, we have enumerated ten different ways by which getting rich fast can turn from a dream to reality.
Millionaires do not put their money in one place, they scatter their funds in various investment plans to keep it more secure and to get better returns. They usually put their money in real estate, stocks, bonds, etc.
FD vs Mutual Fund vs Real Estate Investment has its advantages in terms of how much you invest and your investing period. Longer the period, higher the returns.
SIPs or a Systematic Investment Plan is a great tool to build money in the long run with a minimum time period of 5-10 years. It offers multiple advantages like a low minimum capital requirement, averaging benefit, formation of investing habits, etc. However, the most adequate time to stop your SIPs is when your financial goals are met or when you feel to change the objective of your investments.
mehakpal1
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.