SAVE FIRST, SPEND NEXT
Every man expects that he should not dependent upon anybody to meet their needs. For this purpose he has to plan for savings to meet unforeseen events, immediate needs, medium period and long term needs. Also everybody expects that their family members, children should not face financial problems in future. To meet the expectations one needs savings and investment plans for their bright future. One has to make habit of saving out of the income earned. For this purpose one has to follow some strict plans to be implemented.
- Earn Income fully from all sources of men, money, material etc. you have.
- Realise the earned Income fully
- Save atleast 25% of the earned income
- Spend upto 75%of the earned income only
- Invest the saved amount in equal proportions 25% each of Four areas of No Risk, Low Risk, Medium Risk and High Risk areas based on period of requirement.
As a first step separate the 25%of or earned amounts for saving and start spending. If you want to save many things seems to be unimportant and when you want to spend many things seems to be important. Watch at the end of the period. You may be able to save.
Do not think that there is no opportunity for investments, at prresent every area is needs investments.
Savings: It is argued that it is not possible for a common man to save during this high cost of maintenance period. But everything is possible when there is intention to start some thing good for bright future. Savings can be done in the areas of power, fuel, educational expenditure, food, health care, entertainment, tours and traveling and many other areas of day to day life.
