Posted in Money Power
Money Saving – Follow the 10% Rule
Wow, this is something that we all American think of doing as our new year resolution but cannot fulfill it. But it is a true fact that money saving is an important part of our life and that is the best solution to get richer over a period of time. As you keep saving every week or month, one day you will see wealth of money in your bank accounts. For becoming RICH, the first rule is to SAVE and so I have started regularly saving some money at the end of every month. I know for the people who earn just enough money to survive, for them it would be a little difficult to save some part of money. While some people blow away their entire salary, yet there are some who do not have a single penny till the end of next month and there are some who are able to subtract a part of their money income in their savings accounts. Having a tab on your expenses and avoiding unnecessary expenses will surely help to save some part of money at the end of the month.
While some people may argue, why should they save money as their employers look after their health or life insurance policies and in some cases travel insurances also where employees need to travel on a frequent basis. Given below are good reasons why YOU SHOULD SAVE MONEY –
- In the case of emergencies like medical expenses outside the policy or for family members who are not covered in your health insurance policies.
- Buying a car or a house or any other vehicle in your business.
- Loss of jobs without a pre-determined date or any of the decided terms of conditions.
- If you want to start with your business or getting married or going on a holiday.
There are endless number of things one might need money throughout their life, the best rule is to start saving money as much as you can. The 10% rule is seriously effective when it comes to deciding on the proportions of your savings, decide to at least save 10% of your money income at the end of the week or month. Saving your money in just bank accounts is not going to generate good money for you, the better option is to invest your money in mutual funds, these are a good financial options that carries low risk factor as also increase in the profit earnings. Some companies even offer to save money with them so at the end of each month your money directly gets deposited in your savings account. As more money is invested in the savings account, you will get good interest rates on the money deposited in savings.