Sitting in the lobby of the OT of a private hospital, I realise a few things which demarks a wise person to a rich person. It's said a person is not rich by how much money he has now, but is rich by how much money wisely he saves for the future.
A few tips which everyone should implement it in their lives to save money wisely-
1. Always make your wealth goals- You should break down your needs in tenure terms and then determine the wealth to be created. A wise person breaks down it in three parts a) Immediate needs e g., travel, furniture etc. b) mid term needs - like kids education, buying a house. c) long term needs- mostly retirement funds. I have seen people creating wealth for the after retirement lives or for their kids education and not enjoying the present. So enjoy your present as well as the future
2. Don't invest everything in same product- all investment should be distributed in various products. Each investment tenure should be bifurcated in short, mid and long terms
3. Keep your budget set- having loan liability and more expenses is going to hamper the wealth creation. Atleast 20% on your income should go into savings. So set your expense chart before hand
4. Always have a health insurance on hand- having a health insurance helps you from unnecessary hospital expenses and also helps in your well being. Always know the motto "Health is Wealth" and health insurances is safe deposit.
5. Keep a term plan for yourself- Having a term plan keeps your family well being intact. When you are the bread winner, you always have to insure yourself for the betterment of your family future.
6. Never astray from savings- Keep the plan of savings in your mind and in your monthly routine. Dithering from the savings plan will make you lose out the interest gain for that period.
7. Dont stick to a constant saving plan- Each Saving has a risk involved. Never remain in same plans as the interest rates are always fluctuating. To grow your wealth try to maximize your earnings with your risk appetite.
Always remember " Saving is like a garden, where flowers and fruits are sown, grown and they whither too". Be wise in your savings rather being miser to save for tomorrow.
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