In our life most of us face problem of saving money, it’s not because we don’t earn sufficient money – it’s because if we have money left with us we just spend it all.
Well, every coin have two sides and same is with the world – Most of the people see the world of not enough money but they don’t know the other side of the coin which is the World with a lot of money.
Today I will make you familiar with the Power of Saving Money, in which you will know how saving money can help you to create great wealth in a long term and how you can do that just by changing the way you spend money on your bills.
Power of Saving Money
Do you know?
If you save just Rs. 100 daily, you will have around Rs. 40,000 at the end of the year.
In the same way, if you save Rs. 100 daily, you will have around Rs. 2,00,000 at the end of 5 years.
Well, you must be thinking that Rs. 2,00,000 is not enough money that too at the end of 5 years?
Then I must say, “Something is better than nothing.” for these just Rs. 2 lakh you just taken out Rs. 100 a day!
How much money do you need at the end of 5 years?
10 lakh? or 20 lakh? or 1 Crore?
Simply increase your daily savings from Rs. 100 to Rs. 500 to Rs. 1000 to Rs. 5000 according to the corpus you need at the end of 5 years.
It is just a simple mathematics!
Okay, so you are understanding what I’m saying but the question that is coming in your mind is not about why to save money, it’s about HOW TO START SAVING MONEY?
This is the question that comes up in the mind of majority of peoples who wants to start saving money, but they are confused on how to start saving money? Let’s learn about it then…
How To Start Saving Money?
It’s very very very simple, all you need to change is your thinking to do it, that’s it!
Yes, you read it right, all you need to do is just change your THINKING!
Let’s see then…
You have a list of expenses like your EMI’s, electricity bills, mobile bills etc, right?
Simply, add another expense to your list of expenses and put this expense at the #1 priority, and that expense is – SAVING MONEY!
Yes, whenever you receive get your paycheck just pay your saving account first, the account where you have started saving money for a specific period of time for the corpus amount you need at that time.
Okay, so you have understood and made your mind to the same, that’s really a very good decision.
But wait…there’s another question coming up in your mind. (yes, I knew it!)
That question is…
How much money to save?
For that you have two options:
1: Start Saving the specific amount as I discussed above – it depends on the amount of corpus you need after specific time period.
For example: You need Rs. 20 lakhs at the end of 5 Years, then you must start saving Rs. 1000 daily.
2: Start Saving Money by saving 10% of your monthly income and increase it by 10% every year.
For example: You have monthly income of Rs. 25,000 then start saving Rs. 2500 every month (i.e. 10% of your monthly income) for the first year and then start saving Rs. 5000 every month (i.e. 20% of your monthly income) and increase it by 10% every year in the same way.
I hope you must have understood the power of saving money till now and I also hope that all your common questions have been answered regarding saving money.
If you still have any query then tweet me @gurpreet_saluja.
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Hi, I’am Managing Director at Gurpreet Saluja Financial Services where I help my investors choose right investment avenue to achieve their financial goals. I’m also a Value Investor and here I Write about Finance & Investing.