A penny saved is a penny earned
— Benjamin Franklin
There are lots of ways to earn money in the modern world.
Some people work a day job, others have inherited fortunes from their parents. Then there are entrepreneurs, Forex traders, and even lottery winners.
However, when it comes to growing your wealth – it's not that simple.
Because only a few people know how to properly manage their funds.
The knowledge of making your money work for you is not intrinsic, however that doesn't mean it can't be mastered. The secret lies in an thriftier approach to life and being smart with your needs and wants. Today we're going to talk about the proper way of managing your savings.
Saving up is akin to being on a diet – not everyone can pull it off, but once it's a part of your lifestyle, you can enjoy so many benefits!
People often think, "Why would I want to save up? Life is too short, why not live it today!"
In order to answer this question, let's take a look at the most common reasons why people do save up.
I. Saving for the rough times.
This type of saving is particularly common with Russian expatriates, which can be quite understandable considering their Soviet Union background.
Retirees also tend to keep certain savings. In case of unexpected financial problems, it would help them stay afloat.
Thus, we see that there is a group of people who save up to insure their well-being against unforeseen situations.
There is also a view that one should not save up for a rainy day because negative thoughts often grow into negative events. In other words, focusing on the problems causes them to manifest into real life.
II. Goal-oriented saving.
This type of saving appears in a variety of ways. A good example can be saving up for a specific goal such as paying for college tuition, purchasing real estate, vacationing overseas, etc. In this case you know what you want and you're going to do whatever it takes to get it.
It may seem strange but the very thought of setting your money aside on a project may cause resentment. Usually the more savings you have, the more difficult it is to suppress it. However, you must remember that you are not just cutting yourself short on cash but rather placing the groundwork for your future prosperity!
So we've gone over the reasons why people like to save up. Now let's review the actual methods that they use.
• Divvy it out.
Some are of the opinion that it is a lot easier to manage their finances when their cash is budgeted. This way you surely know where your expenses go. Some of the common budgeting categories include utility bills, car gasoline, food, etc. It is easy to determine the average amount you spend on these items. This allows you to leave a certain amount for entertainment, vacation, or shopping.
• 10% periodic allocations.
This is a very common method all throughout the world. All you need to do is take 10% of your income and save it, for example, by depositing it into your bank account.
Remember that it doesn't matter how rich you are – you still need to be responsible with your money and keep track of your expenses. That doesn't mean becoming a wealthy scrooge who counts every penny, but you have to have a clear view of where your finances go. There are a lot of applications for cell phones and computers that will help with managing your money. However, we can't stress enough that the really important thing is to keep a close eye on your expenses.
That's why FXFINPRO Capital company offers professional money management services to its clients, such as portfolio management, trust management, long-term investments, etc. You don't want to let your money sit idly when we can make it work for you.
Don't miss your chance to set up a flow of passive income, and don't limit yourself to the traditional approach to saving up. Let yourself have a new standard of life because you deserve it!