• klseesea
• Aug 4,2008
• In: Banks, Savings and Investments

On the road to financial freedom

How ambitious are you financially? Most people face this dilemma when they have money in their hands — To Save or To Spend

Saving or spending has always been the most talked about topic in the area of financial planning because this is a basic decision on e has to make in order to achieve financial independence.

Saving money isn’t about sacrifice. It’s more of making small adjustment here and there.No matter how much you make, you can still save , If you earn less, then start with a small amount. As long as you follow the rules of living within your means you won’t go wrong.

Don’t wait until you have more money to start saving. Start immediately because saving money is on the the means of building wealth and the smartest way to prepare for your financial future.

All you need is to have financial discipline , which is controlling your spending and making sure you pay for the things that need to be paid. What you need is to create a budget and implement it. If you cannot control your spending then no matter how much money you make it will never be enough control your wants, get only what you need, say no to impulse buying and follow your budget strictly, then you’ll be all right. Once you have changed your spending habits, the rest will follow through smoothly.

A key art to financial success is learning the skill of discipline and spending wisely. Once your are able to accomplish both of these objectives, you will be well on your way to saving more money. But how do you stay discipline? You can do the following:

Set A Goal

Make sure you set a goal the is SMART ( Specific, Measurable, Attainable, Realistic, Timely). an example: you want to have RM15,000 in two years as deposit for a house so you need to save RM625 every month. Setting goals is the first step to turning dreams, ideas, and wished into reality.

Use Rewards and Punishments

If you are able to maintain your budget or are able reach your goals, then perhaps you can reward yourself with a treat. But if you suddenly find yourself going over the budget, then as a punishment, you may have to forego some pleasurable activity.

Automated Savings

For those who feel that savings on regular basic is a chore, one option could be tough forced saving , which is via salary deduction.

Accountability

It always good for you to share your goals with your spouse or a close friend. By doing so , you are accountable to them. They may from time to time ask you about your goals, and surely you want to show that your are competent enough to stick to your goal.

In conclusion, it doesn’t matter how much you save, What is important is that the earlier you start saving, the more time you’ll have to accumulate a large nest egg for the years ahead.

Best savings and investments option: ASB, Mutual Fund, Unit Trust

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