Saving is a practice that empowers us financially and creates a safety net for the future. It should be a top priority for everyone. Whether your goals include purchasing a home, acquiring a vehicle, or funding your children’s education, saving is essential to reaching these significant milestones. Having savings can provide crucial support during economic downturns or job losses.

Minimize unnecessary expenses

Try to limit your purchases to only what you truly need. For instance, if you typically dine out four times a month, consider cutting it down to two. Steer clear of pricey clothing and be mindful of your credit card usage.

 

Make a budget

Each month, create a budget and commit to following it. Focus on essential expenses first, then allocate any remaining funds to leisure activities like movies, shopping, or dining out. Make sure to save and invest any surplus.

 

Invest wisely

Consider setting aside a portion of your salary in a fixed deposit at the bank. Additionally, explore investment opportunities in the stock market, mutual funds, savings funds, or Public Provident Fund (PPF). PPF is particularly attractive as it offers tax-free interest and is generally safer than many other investment options.

 

Consult a Financial Advisor

Seeking guidance from a financial advisor or planner can be beneficial, as they can help you invest your money wisely. Ensure that your advisor provides unbiased advice.

 

What percentage of your salary should you save?

If you find yourself overspending, aim to save at least 20% of your monthly salary. However, this target may vary based on your individual financial objectives and living costs. For instance, if you begin saving at 25, a goal of 15% is advisable. If you start later, you may need to save a higher percentage. If saving 20% isn’t feasible, aim for at least 10%, 7%, or 5%. The key is to make saving and investing a priority.

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