Saving for the rainy day
All of us strive to earn for maintain a good standard of living. With the consumerism on the boom even in the developing nations, there is plethora of such goods that we tend to get attracted. We think of buying such goods that are sometimes beyond the present level of one’s disposable income. But still we stretch ourselves most of the times to buy those products…thereby spending on your future income. Everything will be fine until the source of income is not drying up. With the recession in the world economy it is not worth spending all the earnings. It’s wise to save it for the rainy day. So how to do that?. Every penny saved is a penny earned! Sounds palatable? Sure it should be. So how to save your hard earned income. Here are few tips.
1) Budget your expenses and see what are the expenditures that you can reduce or cut in the coming days.
2) You can start some recurring investments such as Systematic Investment Plans of Mutual funds, Insurance Products and also recurring deposits in Banks. Such investment should take care of any emergency spending.
3) Retirement planning should be started at the earliest so that your corpus grows well before you retire.
4) Medical insurance a must. This will prevent a hole in your pocket as a result of huge medical bills for unforeseen medical emergencies.
5) Credit cards usage should be commiserating with your future income.
Hope you agree.