Best Saving Strategy
Adnan Ul Haq
Best Saving Strategy
Adnan Ul Haq
If you’re interested in financial freedom, look no further. We’ve identified several strategies that you may want to try.
Don’t Save Money
The first strategy is that you’re not going to save money at all. To save money, you’d have to put it in the bank or under your mattress. The problem with saving money is that, as the government prints more money and inflation hits, your saved cash will decrease in value. Instead, we recommend investing in a variety of growth-oriented assets to create a strong financial future for yourself.
Investing can be tough. But you should invest in a house, apartment or a shop. If you are unable to get these in cash, you can get them in installment.
Pay Yourself First
The first step on your path to financial freedom? Pay yourself. It’s important to start investing in assets that will grow your wealth and ensure you can retire comfortably. Investments like real estate, stocks, and bonds are great ways to accumulate wealth over time.
Increase Income and Reduce Expenses
Saving can be accomplished in two ways:
- by increasing one’s income or,
- by decreasing one’s expenses.
If either of these methods is successful, there will be a gap between income and expenses. The cost of living will be less than the income earned. By investing the money that is leftover, you can put yourself on the financial road to independence.
Pay From one Card
Try paying from one credit or debit card only. Whatever money you owe, pay off from one account only. Do not pay from multiple cards; you won't be able to track your expenses.
If you want to keep track of your spending, print out a monthly statement from each of your accounts. After you pay each bill, tick it off and make sure each checked-off expense really was made for a necessary purchase. If there are any unnecessary expenses, cut them. And try to avoid such unnecessary expenses in the future.
In life, there are two things: needs and wants.
Needs are the basics. They are necessary for survival. You need to eat. You need to wear clothes. These are needs.
But you also have wants - the extras in life. A small car is a necessity, but an expensive black Jaguar is a want. Similarly, two or three pairs of clothes are needed, but five pairs are merely nice to have.
In order to save money, we have to limit some of our wants. We may have to live without some things we would really like, but we will have more money later if we think about the future - and pay ourselves.
Imagine You Lost Your Job
Imagine that you have lost your job. What would happen if you couldn't pay for your expenses? You would cut down on your expenses if you could no longer afford them.
This is what we are saying, cut back on your expenses so that you are prepared for the worst.
See, when a person loses his job, what is the first thing he does?
When you are unemployed, the single best thing to do is to cut back on your biggest expenses. If you do it in the same way you would if you were employed, only then will you achieve your goal of cutting your budget.
Build Real Assets
We’ve put money aside for the future for a long time. Now we’re starting to be worried about our finances. What should we do? We need to start building assets. Investing your savings into real assets is a great thing.
You can buy an apartment or a house and can rent it. You can also buy a shop for investment purposes either you can start your own business, or you can rent it and generate a passive income.
Control Conventional Expenses
We make several needless expenditures at times and don’t realize it. Such as throwing huge wedding and birthday events just to impress our friends and relatives. On the other hand, we also spend a lot of money just to go to a wedding.
The people who come to the wedding may eat, drink and have a great time but they don’t care about the expenses at all. But you don't get any benefit by doing this. We should stop spending on unnecessary things like this. By stopping these unnecessary expenses, you will be able to save a lot of money.
It’s important to have savings that you can tap into when you need something. But on the other hand, you must also spend money.
What do you spend on?
We need to spend on our assets. We need to spend on our education and training. Understanding the mind box which earns us money is what is important. As the mind gets trained more, we earn more. So, it is necessary that we spend where it is needed. It is not necessary to spend on things which are unnecessary like clothes or shoes.
Mark Fixed Expenses
The next thing to look at is our fixed expenses, the ones we don’t realize and are often overlooked - for example, school fees. Often parents unnecessarily pay high tuition rates for their children to attend elite private schools in order to give their children a better education.
But your child will get a great education and go far in life even if he attends a government school. So don’t pay too much money for your child’s education - it isn’t worth it!
You may have some fixed expenses that you need to show off to other people. Cut these first because they can destroy your salary the moment it is deposited in your bank account.
Pay High-Interest Loans
Let's pay off those high-interest loans first. You should avoid borrowing money for now and pay off any debt you already have. You might want to hold off on getting new credit cards because your current account is making you spend more than you earn.
Buy Installment Asset
You’ll save by paying for your assets in installments over time rather than buying them upfront. Still, you won’t be able to save 40% of your money, because you’re sure to spend that too. So set some money aside each month in a separate savings account. Automate the transfers, so it doesn't give you the chance to spend that money on something else.
You have three options: cut expenses, borrow money, or save. If you choose to borrow money, buy an apartment in installments. Pay for a plot in installments. Build a house on the side in installments. And you can take out a loan. So your debt will be deducted from your salary. This will reduce your income by 40% as soon as your month starts.
We have to keep adding to the profit we receive from our investments. In order to do this, we must keep reinvesting all of the profits we make in new, profitable assets. If all goes as planned, this can quickly grow into a huge amount of wealth.
To avoid going broke, try using any of these strategies to save money. If you don’t, you will spend all your salary every month and end up with no money in your pockets.