August 10, 2020

(Business intelligence) How to save money in a right way. why money shouldn’t be saved in as savings or fixed deposit

Why we make money?

 Obviously we make money to fulfill our primary needs and to attain our life goals. We spend money according to our needs and save a large amount of our earnings for future use. 

People usually used to say that it is important to save money. But actually we don’t know how to save money in the right way that will become helpful for us in the future.
All of us have a lot of dreams and plannings about our future life like marriage, constructing a home, starting a business, traveling, etc. And also like retirement plans that will help us to be self sustain even after we retired from work life. The common ways we used to save money are keeping money at home or depositing money in bank as savings or fixed deposits. Business intelligence

Whether it is enough in the economic situation of the present era?

We have to analyze whether these methods will actually help us in saving money for the future. The fact is that there is no point in saving money at home. That money will not increase even if years passed. If we deposit money in the bank as savings or FD we will get only 4 to 8 percentage interest from that.

 Whether it will help us in achieving our goals in the long term run?

Obviously NOT. That is because of ‘Inflation’. In India, the inflation rate is 4.5 to 5 percent per year. The price of every object increases at a faster rate when compared with previous years. So, if the saved money also has to increase accordingly. Otherwise, we cannot afford the demands of our life in the future. Just think about the price of objects that we commonly use in our daily life. We are paying 5 or 10 rupees more for the same product than the previous year. This is how we are becoming trapped in the process of inflation. 

Another reason for saving money

Business intelligence. saving money is that, as time passes our life expenditure also will increase. We will have families, kids, education, career, health-related expenses, etc.
In the present scenario, people usually take loans for different purposes and we have to pay back it also from personal earnings.
Business intelligence. To handle all these burdens you may have to work up to death. And you cannot set a peaceful retirement life.
That’s why it is important to save money in a brilliant way. We have to ‘invest’ money instead of saving. Find out the place where we could invest money and let money make money for us.

How to invest money?

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Businessman counting dollar banknote – online business concept

The best way is to invest money in mutual funds. The systematic investment plans are risk-free and will give a very high return in the long term run. Rediff money
If you invest a hundred rupees in mutual funds in the long term run you can make lacks out of that.
We can also invest money in the ‘stock market‘ and ‘real estates‘ also.
The important fact is that find the right asset class that is apt for you and invest your money there. Definitely money will grow at a rapid rate and you can make you’re future safe and can lead a happy life. save money app

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