Savings and investment are intertwined and it’s no surprise that both are essential to building wealth and to providing considerable financial security.
You need to have some amount of savings to be able to invest. While there are now several avenues for financing your investment plan, more often than not, you are always required to start the business with your lifetime savings before a financier comes in or you may pay a deposit if it’s a real estate investment.
Many people understand the importance of savings and financial management but few people walk the talk. It requires a stringent financial and self-disciplined attitude to save money, and more importantly, mastering the science of delayed gratification.
Live within your means
This should be obvious and simple and too many people live beyond their means in trying to keep up with their friends and neighbors.
What is does is force you to buy items that you had not budgeted for, making you to either borrow to fund for them or to eat into your budget.
In the long run, you are stuck with items you don’t need and you can’t afford further ruining your finances.
If you already have an internet subscription, you don’t need to continue with your cable TV and daily newspaper subscription. You’ll save quite a fortune by opting for streaming services which offer you a wide range of entertainment options for a considerably lower sum and online news sites like themonitordaily.com which are still as reliable as the newspapers.
On the same breath, instead of having weekly nights at the bar, have a rotational hosting plan with your friends in which you gather at someone’s house every week for your social meetings. It will surprise you how costly drinks are at the club.
You will save money this way without cutting anything out of your life.
Always be on the lookout for bargains and discounts. Buying something for cheaper than you had initially budgeted for will leave your with some spare money at the end of the month.
Before making a purchase, compare prices of the same item in various stores before making a decision. Don’t just look at the price tag only though; some stores may have a slightly higher price tag but they do home deliveries and have a longer warranty period. This means you save on money for driving to and from the store and you can always have your item replaced or repaired for free within the warranty period.
You can make some good savings by cooking your meals at home. You will also give yourself more healthy eating options, which is always a good thing.
Gradually, reduce the number of times you eat out every week. For instance, if you eat out four times, reduce to three or even two. The $40 you save every week will be $160 by the end of the month.