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Daily savings are an easy road to huge wealth creation. To know how to make it work for you, check out this article!
Have you ever wondered how to become wealthy? what would you do If you become wealthy?
Would you be a shopaholic or a minimalist?
Would you spend on luxuries or religiously donate to charities?
Would you still save and invest or just enjoy what is available?
We all can have different things to do with our wealth.
Some of us may treat ourselves daily while others may still be very sceptical about finances and continue to be stingy!
Whatever it may be, in the end, a little self-care is no harm when you have enough resources to do so!
Wealth and savings are parallel components of financial planning. One is definitely incomplete without the other.
If you wish to become wealthy in the future, you must start saving today.
Any financial expert would suggest that you save regularly.
This advice is the gospel truth of financial planning and there’s no way to start investing if you don’t save first.
Another truth is that savings alone won’t take you anywhere near a wealthy future.
Only correct financial instruments that involve proper investment plans can do so for you. There are many channels you can follow to grow your money.
One such miracle instrument is compound interest. There are many other such ways too, but let's first look at what a small step of daily savings can do for your financial health.
How Daily Savings can help you with Wealth Creation!
1. Daily Savings- the Stepping Stone of big Financial Plans
When you save daily, you set the motion of a good money flow.
It is no hidden fact that when you start saving daily, you will be more alert about how you spend your money.
The best part is that any unnecessary spending would be transparent in front of you, so you can cut it down just then.
With us depending more on technology nowadays, if you feel that you are reluctant to save by yourself, you can set daily reminders to save and even create a checklist of items that you can instead substitute.
Saving Automation is very effective when it comes to making saving a habit.
For example, if you regularly go to Starbucks, you can at least lower that frequency of visits and try some DIY recipes.
It will be much better for your health as well as your wealth!
Also, paying through cash is a better way to keep track of your expenses.
When you feel your wallet getting lighter, you will automatically switch to cheaper alternatives.
With these minute changes in daily lifestyle, the saving will become a habit and in future, will give you a big investment prospect.
2. Use Effective Daily Saving Tools
If you are wondering how daily saving is even possible, or even if it is, how would you actually do it?
Well, there are plenty of online apps and tools available that track your daily spending, round-offs your money, and then saves it in an in-built wallet.
One such effective micro-saving app is Jar. Jar not only tracks your spending and saves it but also automatically invests it into digital gold! It basically hits two targets with one arrow, and we don’t see anything better, and that too, with just Rs. 10!
Therefore, if you think that at the end of the day, all you are left with is a little spare change, apps like Jar can even turn them into real gold and secure your financial health.
This can be your first step towards wealth creation and a financially secure future.
3. Right Investment Path with the Power of Compounding
Once you have set the motion for this small savings plan, you can gradually shift to bigger investment plans.
The first thing to do is look for investments with a low-risk profile and a higher rate of returns.
If you are able to find any such account or financial instrument that can offer you the benefits of compound interest, you will be able to multiply money very swiftly.
The most common and popular investment that can reap the benefits of compounding is mutual funds.
Other investments can be SIPs. They too can help you fight market volatility and benefit from the enormous potential of compound interest.
To know more about the power of compounding, check out this article.
4. Investments with High Rates of Returns
While we all want to invest and earn the best rates possible, many of us fail to find what suits our profile the best.
Since not everyone has the same risk profile, investing in the wrong investment plan can take down your finances instead of growing your money.
For example, many of us are aware of mutual funds, but explicit knowledge of the stock market is uncommon.
If you are interested in investing in something out of your comfort zone, it is better to first learn thoroughly about it.
It is sometimes better to even reach out to industry experts and seek guidance.
But to make things simpler for you, here are a few of the most profitable investment options in India that you must consider: Public Provident Funds (PPF), Bank Fixed Deposits, Real Estate investments, Senior Citizen Savings Schemes, National Pension Schemes, Gold ETFs, IPOs, RBI Bonds, etc.
The risk profile and maturity of these investment options are very different from each other, so, choose wisely as per your financial ambition.
5. Better Budget Management with a set of Financial Goals
A good savings plan gives you two prime benefits: first, it helps you to carve out effective budget management and second, you are in a better position to invest.
When it comes to wealth creation, the form of wealth that you want can be your ultimate financial goal.
Whether you want it in the form of a large sum of money and precious jewellery or you desire some land property or if you are more inclined towards wealth in the form of company shares, you can plan your saving strategy accordingly.
Also, a daily saving goal would be much more effective than any other plan, especially if you are just starting out as a saver.
In order to keep yourself motivated for your financial goal, a daily dose of calculative spending is necessary.
Wealth can be created in many ways but each road begins with the signs of savings.
Small savings plans are very helpful for mediocre earners who find it impossible to jump right into a big investment plan.
With their slow pace, these micro-saving techniques help you to attain financial independence gradually but effectively.
Get hold of your finances by automating your savings with the Jar App and start Investing in Digital Gold.