Savings are your best friends in the times of emergencies. Future planning in the matters of finance in someone’s life is the most important thing in today’s world. Money in various forms saved and invested in a thoughtful way always gives fruitful results when in need. Ever since the starting of human civilization, trade has been there. From Barter system to today’s digital currencies, we have travelled a huge distance. In this article you will get to know that how to save money in different ways.
Everything you must know before knowing that how to save money:
Ancient civilizations used to keep some savings in form of gold, grains and other precious items. But, nowadays we have a huge spectrum of options using which we can do savings smartly and more efficiently.
There are many theories related to how one should start his/her savings journey. One very famous theory to save money is the 50-30-20 theory. It says whatever you earn spend only 50% for your monthly needs, the other 30% as emergency funds in case your spending crosses the 50% limit and finally the left 20% in your savings. Believe or not not but this method has helped many in their savings journey.
So, now we know how much to save and literally it can differ from person to person and from one mindset to other.
Various methods to save money:-
1. Fixed deposits and recurring deposits are one of the most trustworthy and safe investments for both short term and long term plans. These may sound very traditional to many millennials but trust me these are one of the best ways to start saving money for near and long term scenarios.
2. Stock market. Investment in various stock markets and shares for a long term is a good thing to do. Historical data has shown a tremendous growth in stock markets over the world in the last two decades.
3. Mutual funds. If you do not want to take high risks as present there in the stock market, one thing you can do is invest in mutual funds. Mutual funds is the concept of shared risk. Various large, medium and small cap companies are there in the market. So some finance firms/companies create a group of these various companies and the risk factor becomes low. Mutual funds have shown a tremendous growth of 10-30% over the period of last decade and is expected to show the same in the coming times.
4. Other means of investments for your money are NFTs, crypto currency and other digital currencies. But the risk factor is too high for these type of investments. So, we recommend to stay alert if you make such type of investments.
5. Bonds. Various governments around the world issue bonds against money for long terms from market. So you need to do some research on some stable and investment friendly bonds issued by governments that can provide return in between 5-15%.
If you want to learn more about finance, you can read our blog on finance. For more such informative articles, you can visit our website apksquare.com and keep learning.
So, in this article we discussed various ways in which one can start his/her investment journey and be future ready.