Learn To Save Money By Investing

Learn to save money by investing. Sound advice on building your wealth by saving and investing your money. Ideas on how to avoid spending and start saving.

Is that your complaint? Not to worry. It is a universal grouse. You will find your next door neighbor saying the same thing!

How can you invest when you can't save!?

I, for instance, don't seem to be doing anything with my paycheck at all. As soon as my salary is credited to my bank account, there is a steady outflow of cash towards unavoidable expenses. There are the monthly allowances to be given to family members, groceries, fruits and provisions to be bought, school/college fees of kids, private coaching class fees, telephone bills, electricity bill, society tax "¦the list goes on. When it ends, the bank balance reaches the minimum stipulated level. Yet another postponement of the decision to invest. But next month's story is not going to be any different.

How to get out of this vicious circle?

Here is an idea. INVEST A PART OF YOUR INCOME FIRST; THEN PLAN YOUR EXPENSES FROM THE BALANCE.



For instance, why don't you first take some money out of your paycheck and put it a recurring investment plan of a mutual fund scheme? How about giving standing instructions to your bank to transfer a specific portion of your salary to a recurring deposit account every month?

Here is another idea. Every year, one receives a raise in the form of an annual increment in the salary. Why don't you set aside a part of this increase for investment purposes without attaching any expense to this portion?

Have you received a tax refund? Why not set aside the whole sum for an investment? Have you got a windfall gain from a lucrative assignment? Don't buy that new car you have been drooling about for sometime now. Stash way a chunk of this money in a good investment plan first.

The moot point here is, SAVE FIRST THEN SPEND!

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