Money saving and money making may go hand in hand if you plan it from the beginning. It’s a fun world. When you think that you are probably blocking your money at one place, you may be secretly, unknowingly and automatically be in the process of growing your money.
And sometimes it happens that you plan to grow money and there you actually invest and get stuck in it so badly, that your money is gone along with labor, time and all, thereby giving you a big bad pit of debt and loss. Therefore everything is dependent on the right plan if you plan it right, understand things the right way, and also always are ready with some backup plan. Then you may always avoid troubles and make good money and financial strength.
The best practices to save money
Saving money can be done very methodically. You need to understand one very important fact from the early days of earning money. The sooner you realize that you will not be in your best earning potential with advancing age and other factors, and the sooner you realize that now is the time to save, the better for you. The future can be planned, but things are not really in your hand. Hence plans do backfire at times. The best practices to save money are discussed here.
The first step to making money
Opening a bank account is the first step to make money. Many employers open a salary account for their employees. Even if you have one, do not rely on the salary account existence. Try to get another account separately, which will be out of the influence of salary and other calculations. There you will accumulate all the money which you are saving per month. As soon as you accumulate a good amount of money, transform it into one form of security. This may be a fixed deposit where you keep the lump sum amount in a fixed form for a tenure. You may also invest in savings schemes, and money is growing plans.
If you do not transform liquid cash in such fixed form or secure forms, then you are always endangering the cash to be spent in times of a sudden crunch, or in a sudden unplanned way. However if you transform it into a fixed form or certificate etc., then you won’t touch it normally and wait till that tenure, thereby forcefully reserving the cash. Remember to transform liquid cash into secured and fixed forms whenever you accumulate some money.
How much should you save?
While you will have to save money, you will also have to spend money on necessities, basic living, some plans and programs, and sometimes for buying luxuries too. There must be a balance. To bring this balance, you will have to avoid the wrong method. Saving money after scooping out your needs, expenses, and luxurious spends are the wrong method.
You should never save that which is left after taking out all expenses. Instead, start by saving a good amount of money by realizing how much you can and need to save, little by little, month on month, to accumulate a certain amount by a certain time. As per that plan scoop out your savings portion first from the monthly earnings. Then you may spend the rest you have with a systematic plan or budget.
This way, you will never have to say that you have spent all that you got and have nothing or very little to save. If you follow this path, you will forcefully save, and saving has to be made forcefully so that you can secure a better future financially.
How to make money?
As said earlier that saving money and making money may go hand in hand, you really can make money by making small investments systematically. For this, you can save some money with the plan of investing. And when you accumulate enough, then instead of saving the money in some fixed deposit or similar fund, you may invest it is some form of a share, debenture, stock, commodity, real estate, or any such thing, which will gain a resale value higher than its current one with time.
This is an investment, and here you have high chances to grow your money if you sell or retain this thing later. This again needs careful planning and taking into account several factors about the investment. Altogether if you know to understand and watch the market well, you can invest. Or you may take investment opinion or help from investment consultants too.
Avoid getting into debt while playing with your money
In between saving and investing, you may get through a stage, where you feel stuck with a decision. Some form of money saving or investment may go wrong, and your money may get stuck, or the value of the invested item may go down with time. In such cases, things do not work out as planned, and you may get into financial loss. So that you may get out of a crunch situation like this, do not invite in more financial troubles in the form of debts and all, to cope up with the loss.
You must also have good ideas about debt management too. While studying money making and money saving, also do study debt management through trusted resources like toptenreviews, and prepare yourself for all the money matters you may face.
Money making and investing in growing money is art. Initially, you may consult services for this, and with passing time you may get the knack of investing and growing money. But it’s always important that you stay prepared for hard times as well as you are planning for the good things. That is how money can get managed most responsibly. Also the sooner you start saving and investing the smoother your future with finances is going to be. To start with start getting saving and investing ideas and research on them.
Marina Thomas is a marketing and communication expert. She also serves as a content developer with many years of experience. She helps clients in long-term wealth plans. She has previously covered an extensive range of topics in her posts, including money saving, Budgeting, business debt consolidation, business and start-ups.