When was the last time you put aside your monies for emergencies or any sort of investment while observing financial discipline to the latter? Board on a debt ride and had a safe landing off financial distress? We seem to have never really put into attention the good things that come with the delayed gratification of saving.
“Savings remember, is the prerequisite of investment”.
This quote not only satisfies the rule of thumb but also lays the foundation for good financial habits. A proven tactic has it that a saving culture starts young while accounting for every penny.
In light of a saving spirit, it is vital to put priorities right with regards to investment plans/products, a reasonable contribution rate, short and middle-term goals while putting into account the likelihood of arising risks.
According to ‘Barkestone Associates’, decisions to start saving solely depend on ones’ specific situation with regards to the current financial position by calculating:
· their income,
· time frame, and
· desired goal.
All in all, before embarking on a journey towards financial independence, it is important to understand the simple basics of savings as a precautionary measure towards financial security and counteract emergencies.
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