Money saving is a habit, a process where we learn to be realistic. It is the most significant start of being practical. One can start save money only she or he has built up a mind set to face the reality or have any idea about currency importance value. Ways can be thousands of saving money.
Money saving ways varies on age mentality and maturity. In a word only way of saving is to curtailed expense and stop unnecessary buying’s for curiosity. The best way of save money is the mind set of saving.
It is a habit starts from childhood sometimes. Kids save money in piggy bank, and also from pocket money by not buying chocolates daily or hiding moneys secretly. It was a simple word, but in deeper, the kid is resisting his wish and trying to be realistic. Some very common things I always do for saving are, I hide money in books, jars or somewhere beyond my sight to resisted myself from curiosity buying’s.
A mature option is to open a bank fixed deposit account, which is motivated for saving by giving a high rate of interest. Most of the banks give 9% to 12% interest against FDR accounts.
Investing on companies by holdings share. It gives equity as well. Though investing on share is high in risk and not a humble option for saving but profitable sometimes. To reduce risk preferable share can be chosen as option.
For risk free option, ‘debenture’ is the best option. It is out of risk, gives security and a nominal rate of interest as well. Another reason why debenture investment is better than shareholding as saving is, the amount of debenture value is returnable. So, if investing can be down on debentures, it is increasing profit and counting as a contribution in a company also.
Giving loan to any trustable person is another way. Though it may cause any moral hazard but still in the option list. Till the loan is being repaid we can assume that our money is safe secured.
Parents are also sometimes an option of savings. They keep us reminding to be accountable on expense. I’ve a personal experience on that, my sister has no habit of saving, my mother used to encourage her by save some from her pocket money. She didn’t use to give the whole amount rather save some to her and at two months end my mother showed her this is how saving works.
Money saving is a task of matures. Difficult, challenging but all it need is a strong mindset and this mental stability is the best way of saving.