It is not enough just to earn money, but one needs to know how to manage it as well.
The first and foremost thing to understand in finance is
"Money today is not equal to Money tomorrow"
Each and everyday, the value of money is overwritten by the inflation and hence preserving the money within your home lockers would not bring any profit.
Way 1:Make it alive, than dead
The best way to manage your money is to keep it in rotation. We can allot a certain percentage of the income for emergency purposes and the rest can be kept in rotation and create assets instead of money. This is the best multiplying technique.
Investing in the stock market is one of the multiplying technique, however one need to be careful in selecting the stock on which investment is made and diversification of stocks is necessary to maximize the profit.
Making an early investment is always a best idea to make in life. The returns in your old age would turn awesome which helps you and your family in the ripe old age and be independent financially...
Way 2:Cost cutting
Make a generic checklist of expenditures every month and keep a track of inflation rate of money and list out the top five expenditures that can be avoided.
For eg: buying a readymade product would cost you more than buying a raw material and preparing on your own. If you really want to be rich and have some pennies left out on your pocket, then stop buying readymade products. Buy raw materials and make things out of your own, this will improve your savings as well as new skills are obtained in practice.
Organisations do cost cutting to maximise their profits, why this cannot be implemented in our personal life as well? Just think of it once... you will realise the truth! We need to have everything in life in a right proportion... but should not be in a lavish manner.
More the knowledge you gain, your expenditure will come down. If you want to really save money, then the mandatory step in the journey is to gain loads of knowledge on money and how it works. More the knowledge, less the expenditure.
Way 3: Bargaining
Do you know that we can bargain even on MRP?
Develop your skill of bargaining... this will save a lot of money in your day-in-day-out and these little drops would make out a mighty ocean.
So, why you are waiting???
Start today.... Victory is yours!!!
