First, let’s start by asking ourselves, what do I need money for? What am I going to do with it? How can I start saving more? Will more money solve my problems? These are basic questions we ask ourselves from time to time, however, we can never really answer it.
What is the purpose of saving?
One of the key components of accumulating wealth and having a stable financial future is saving money. You may escape life’s unpredictability by saving money, which also gives you the chance to live an enjoyable life. You can avoid many difficulties and barriers in life by setting aside money in a disciplined manner.
Ok, but how do I start?
Most people fall short while answering this question. Starting to save money may be a very difficult process that takes at least a year to go through, and for this, you need patience, an understanding attitude, and mental clarity.
The 50:30:20 guideline by Elizabeth Warren, emphasises the importance of financial responsibilities, stating that 50% of monthly income should be allocated to needs like housing, insurance, and education, while 30% should be used to satisfy your desires, and the remaining 20% should be allocated to savings, which can be achieved through various options such as bank deposits, stocks, gold purchases and real estate.
Does more money solve your problems?
Absolutely not; additional money just makes issues worse. Money does not fix all problems. Just as it’s possible to be poor and content, it’s also conceivable to be affluent and miserable. However, the independence and flexibility that come with riches might provide you the time and space to pursue the things that are most important to you.
If you spend it wisely, you save wisely. It would for sure take the financial burden off your shoulders.
Saving young…
Making savings a habit early on helps it last a lifetime! Saving teaches children the value and importance of money. The 50:30:20 rule would have a significant influence on their lifestyle whether it be money received as a gift or as part of their monthly allowance.
