Let’s Talk About Savings
“Remember, people don’t get poor or bankrupt because they cannot increase their earnings but because they cannot keep a check on their spending. ”
The primary requirement for you to become financially stable is to have enough savings for the financially turbulent times. You got to develop a habit for savings, no matter how financially sound you are. This will ensure that you are never in dire straits as far as your financial life is concerned.A good method to save is to go in for those types of accounts that compulsorily maintain a certain amount of balance in the account and even pay handsome interest on it. Such accounts are called Interest-Baring Checking Accounts and are very common in a large number of countries.
You also get the option of enhancing such saving accounts. You can transfer extra money into them via check or direct transfer. However, you have to keep track of your savings for a better picture.
You can also make provisions that money from your checking account is automatically transferred into your savings account at least once each month. In this way, you are saved from the botheration of being able to remember to deposit bucks into your savings account each month. However, you must be cautious as not to overdraw your checking account.
Another method is the Certificate of Deposit. You just have to sign a contract with the bank that you would leave a stipulated amount of money in the bank for a specified time. This method generates more interest and the longer the time period the higher is the interest.
Similarly, you can invest in Mutual Funds. These can also be considered as a good saving method, if you are able to tolerate the little amount of risk associated with such funds and bonds. However, be rest assured, as the risk involved is not much high.
Remember, people don’t get poor or bankrupt because they cannot increase their earnings but because they cannot keep a check on their spending.
Therefore, you should develop endurance power so that you don’t meddle with your savings account just for some extra thrill or adventure in your life. Bear in mind, a well-maintained savings account provides much greater safety than the refuge that a straw provides to a drowning man.
Author - DeeKay
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