In these recent times, the period whereby we are experiencing an economic breakdown, what you need to do to survive through is to save. What Do You Save? You save your money! Maximize the use of your income by saving out of it. Saving doesn’t hinder you from having extra cash left to spend but instead saving in the right way will help grow your income. Why Do You Save? You save your income so as to have in abundance. Saving your income will make you at any time always have more to spend. When you save, you are building wealth for yourself.
Now, this is it, How Do You Save? When I said save, I do not literally mean putting your money in a safe (box). I mean keeping your money in a place where it will be safe and at the same time continue to provide you with an endless stream of income. Nevertheless, you can also save your money by following the layman way of putting it in a box and never get the chance to grow it.
Now that you have understood what saving is, what to save, and why to save, let us go into a deeper explanation of How To Save by explaining the necessary steps to take. The 3 steps to take are arranged sequentially as follows:
- Create Your Scale Of Preference
The first step to take into saving your money is to create a scale of preference. You have many things that you need and want, but some are a top priority. It is your scale of preference that will guide you into knowing which is needed the most. Your scale of preference is a list of all your needs and wants in an order of priority. Needs are immediate and also essential, wants are not. So, remove your wants from the list as you can still live without having them. Determine the total amount of your needs and take it away from your income, of course, you would have some money left. This money left, save it.
Interesting to Read: Investing For The Future: What To Do With Your Money
- Grow Your Money Left
When I talked about saving your money left, I never meant just putting your money somewhere safe ordinarily as that would be the last thing I would do. The proper way to save your money is to put in in a safe place where it would continue to grow.
Save your money in a savings account that offers higher interest rate and at the same time won’t lock your money down for years like the CD account. Also, for every of your income, continue the first step and then grow the money left.
- Invest Your Money Grown
Another way of saving money is to invest in a worthwhile source of passive income. The most successful people of this age save their money in a worthwhile source of passive income. By saving your money in a worthwhile source of passive income, you need not stress your self before you can make money as your money will work for you. Some worthwhile sources of passive income include Robo-Advisor, Real Estate, REIT’s and High Dividend Stocks.