Saving Early is the Key to Financial Nirvana!

The only thing that can be done to gain financial freedom is to save.

Youngsters in India who start working in their 20s are almost opposed to the idea of savings and stick to the EMI concept. They tend to spend luxuriously on things and take on 2-3 EMIs at a time which leads to the drainage of cash that could’ve been saved in the name of savings.

However, what they fail to understand is that in this unstable economy, savings are absolutely necessary, you must have a stash kept aside, a huge one to meet emergencies or in an unfortunate event when you are shown the exit door.

Before starting with any savings and further investment thoroughly assess your current financial position that includes things like your earnings, your regular expenditure that incurs every month, savings that can be done easily, etc.

Follow the rule of 10% margin of safety whereby from your salary deduct your total regular monthly expenditure and also keep aside 10% of the remaining amount with yourself for any contingency and invest the rest.

Choose wisely between plethora of options available for someone who wants to make an investment like SIP mutual funds, shares, stocks, money market instruments or go for no-risk investments like recurring deposit, fixed deposit etc. You have to decide for yourself which option suits you the most. Eg: If you’re someone who lacks the expertise in online trading then mutual funds is a safe option for you wherein you could enjoy the best of both the worlds i.e. Debt as well as equity market. And if you wish to take just no-risk then save in various saving schemes offered by your bank.

Last but not the least, outline and identify your own financial goals in the short run and the long run as well so as to work towards it by investing in accordance to your goals.

The only thing that can be done to gain financial freedom is to save, its difficult and at times we keep on delaying it for the next month in the name of a particular expenditure that incurred this month, but something might come up the next month as well, you’ve got to start somewhere. The sooner, the better!