5 Great Things To Know About Savings And Investments

Have you felt so rich and you are like you are on top of the world? You earn so much that you are confused on what to use money for.

One major thing that really matters a lot is the fact that you learn the act and art of SAVING and INVESTING.

Not everybody puts mind in these strategies but you can't just escape it because it is too important to be left aside.

Let move on to learn somethings about savings and investments. 

 

BE CAREFUL ABOUT SMALL EXPENSES

All of us are usually careful about making big investments and huge purchases. However, we tend to spend recklessly on seemingly small expenses.

But of course, these small expenses can amass to a big amount.

Suze Orman rightly pointed out, “Look everywhere you can to cut a little bit from your expenses. It will all add up to a meaningful sum.” You should learn to save and invest.

FOCUS ON THE FUTURE

 

It is very easy to spend money for getting something that we like but at the end of the day, you will end up spending everything no matter how well you earn. Shift your focus to the future instead of getting satisfaction in the present.

SAVE A HUGE PORTION OF YOUR INCOME

Again, we think that wealthy people are always splurging and spending on things. No, they are not. That is why they remain wealthy.

They always save a portion of their income. So save a large proportion of what you get. This will ensure that you do not run out of money at any point in time.

“Save one-third, live on one-third and give away one-third.” – Angelina Jolie

INVEST YOUR SAVINGS WISELY

 

We usually ignore the small amounts but such tiny amounts can add up to a substantial sum. If you have more, it is even better. To top it, if you invest the money properly, you will be amazed at the result yourself.

“A penny here, and a dollar there, placed at interest, goes on accumulating, and in this way the desired result is attained. It requires some training, perhaps, to accomplish this economy, but when once used to it, you will find there is more satisfaction in rational saving than in irrational spending.”  – P. T. Barnum

PRACTICE THE MILLIONAIRE’S FORMULA

A common man’s way of thinking is usually that he saves after meeting the necessary expenditures. A wealthy person’s style is the opposite: we like to call this the Millionaire’s Formula.

Here’s how it goes: upon receiving your income, put a certain percentage towards giving back to the community, and also a certain percentage for your investments for your financial goals. Only spend what is left.

“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffet.

Now you will think and begin to SAVE and INVEST.