The world of finance is not smooth and straight. There will be ups and downs. The important thing is whether you are staying the course and whether you save or not
The financial world will always be choppy. There will be times when asset classes swing unpredictably. Equity assets are most volatile, but even debt as an asset could be choppy. These swings will test your nerves. But remember, choppiness is a distraction. If you save furiously through thick and thin, in the long run you will amass a huge fortune.
For most of us, making a plan is the easiest part. All you need to do is to get hold of a pen and paper and pencil your plan. But it is practicing the art of saving that is probably the most difficult. Why?
Beware of the little expenses; a small leak can sink a big ship. – Benjamin Franklin
So when it comes to saving, there’s only one thing you can do i.e. save furiously.
LOOK AT THE OPPORTUNITY LOST
There’s one thing that you must etch deep in your mind and heart. Every little penny or dollar or rupee saved today can turn into a mass fortune tomorrow. Savings have an uncanny knack of multiplying. And within no time you will have saved your self a fortune. Not saving anything today will surely mean that you have lost the opportunity to have a tidy sum of money for yourself in the future.
AVOID THE DISTRACTIONS
During the course of your savings journey, there will be many speed-breakers and potholes. Money in your hand often finds a reason to slip away. You could be tempted to buy the net gizmo or spend on the latest mobile. Every time you face such a situation, hold yourself back. Tell yourself that if you avoid spending on this now, you will have be able to realise a bigger goal later in life.
TRANSFER YOUR MONEY INTO LOCKED ACCOUNTS
One of the best things to do is to transfer your money to an account where you will not be able to access it. Some accounts have a lock-in period with tax-breaks, in which you have to park your money for a specified time frame. The longer your money is locked in in such accounts, the better. It will mean that you will not fritter your money in vain.
KEEP YOUR FOCUS CLEAR
During the process of saving, you may find yourself sometimes unable to cope up with your savings. But you have to pull yourself back by the scruff of your neck and continue to save in any asset class. Sooner or later, the joy of seeing your money grow will be a big enough motivation, so much that all the distractions will not deter you from doing the important thing: i.e. save.
