Make Saving a Habit

Hi, I am David Thurman, a guest blogger. I work as a freelance insurer and I find your blog quite interesting and informative. I wanted to express my views on saving money.

• Saving money is a habit that comes to each person with time and consistency. There are many ways to earn money faster like trading shares, commodities and Forex, particularly via the intraday mode. Though that involves lots of risk and initial investment, the returns and experience derived make it totally worth it.

• Long term saving involves prudence and calculative understanding about the safe and best returns. Considering the age of a person and his earnings, savings ratio can be determined accordingly.

• Before a person starts saving money, it is wise to calculate the monthly expenses taking into account all their commitments and keeping aside five times of that amount safely in the form of a fixed deposit or as liquid cash in the savings account for a rainy day. This way, one can be well prepared for the unexpected and the worst case scenarios.

• Avail proper insurances for all your basic requirements. Be it your health, life, job, home or travel, insure them all and play it safe. Being forewarned is being forearmed.

• Start planning your strategy with an eye on your long term savings as well. That includes saving for your retirement needs too. Your long term savings could be the lowest while your short term savings should be higher.

• Spread the risks and expand your savings portfolio- Have some money invested in government bonds, nationalized banks, share market, mutual funds etc. and the rest in recurring deposits and fixed deposits. You could also spread it further by investing in real estate.

• Do not commit for all your money. That will increase your stress levels. Enjoy saving a part of your earnings and never make it an obligatory stressful activity.

• Keep yourself updated. Subscribe for newsletter that investment firms offer or purchase newspapers or magazines that report on economy. You could also read useful blogs and other available sources in the internet. Maintain your own wealth advisor or relationship manager who will render services and also keep you updated however small your savings are.

• Keep a log of all your savings in an e-format or in a diary and inform your spouse or lawyer in order to avoid unnecessary problems in case of any unexpected untoward risk.

• Read the fine print before investing in anything. Get all your doubts cleared before you enter into a financial commitment. Your doubts may seem silly to yourself or to others; but it is important for you to know all the facts as it is your hard earned money.

• Remember to pay your taxes in time. It saves lots of uncalled for troubles.

Above all, invest equally wisely in your health and personal development for greater success, joy and contentment.