1. Keeping Balanced Lifestyle
When we begin earning, we tend to go loose on our spending. We want to buy all that we wished for, though that seldom helps for most of the times our expenses outdo our income. But, as it's said, "wisdom is to know what do we need more than what we want now."
To follow a living when there's enough livelihood left for decent savings, a step that could help is keeping a track of our daily expenses – in a journal, or online mobile app. Smart move would be making 15-20% of monthly income available for saving.
2. Investing in Skills
Growing as "an asset to self" becomes necessary with time to secure better remunerating job or business. Eventually, no matter what one saved by 30, the habit of updating skill-set would enhance career choices and thus, future compensations.
Something simple as 'time management', or more meticulous like a 6-sigma certification course – anything and everything improves work profile and catalyzes income-growth.
3. Setting Goals
"A Goal without a Plan is merely a Wish". Therefore, mere wishing to save isn't going to be fruitful. Since, small steps are to be achieved eventually paving way for larger accomplishments; a little regular progress is going to add up to big results.
Setting up of time-line of the goals is vital – especially with loans or EMIs. A wise step to pay off a loan before the next 3 years, or investing in mutual funds - either way, setting up a period makes completing objectives realistic and workable.
4. The Habit
More important than saving big amounts, is its act. The young love to get serious about saving for retirement; though, taking baby steps suffices for the time.
Setting up those EPF and PPF accounts not only streamlines financial planning in 20s, but also gives scope of investments. Added advantage is opting for Company's Pension Plan to the maximum affordable limit.
5. Avoiding Extravagance
The simple aim must be – 'expenses mustn't exceed income'. This leaves room for savings/investments, in addition to inculcating a more cost-efficient lifestyle even when the income rises.
Therefore, utilise the excess income to reduce debt, rather than splurging on luxury; which also sounds more appealing – "aamdani rupaiya, kharcha atthanni".
6. Financial Literacy – Real Tips to Save Money
Personal Finance seems like coursework; in reality, it's a lot like say, learning to type. Appears daunting at first but as one grasps the basics, the pay offs are lifelong.
Moreover, the effort to understand finance galvanized with calculated risks would make for wealthier future assets.
7. Borrowing Code
To fund expenses through borrowings (loans, etc.) isn't bright; for it expands credit. Not to mention the habit dies hard while adding to lifestyle costs, leaving zilch room for savings.
If at all, borrowed money should be invested whose returns exceed costs. Be it learning skills, buying estate, stocks, FDs – all leverage wealth increment and allow easier financial goals achieving.
In conclusion, it all begins with one step at a time; and the 'time' is to be "young and wise".
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