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How to increase your savings through effective planning?
Posted on: 12/Oct/2018 3:18:20 PM
Nikhil Singhi, the financial service specialist explains people through Live Chennai the ways to increase their savings for building a better future. He insist on finding a right gap between the monthly income and the total expenditures. After meeting all the needs and commitments there must be a considerable balance to put into some kind of savings or investment. Though the two words, Savings and Investments, looks like different words with relatable meaning, there is a big difference in terms of how it is viewed and perceived.
Savings is a constant where it lies on an account or with a person directly without any kind of active participation financially and economically. Whereas investment is something that can be easily multiplied on through various schemes and investment strategies. One should find the right balance to decide to place their hard earned money either on a saving scheme or to take a bold step to convert it into an asset. Investment will ac only as a savings if it is used for a short term return. The only way to convert the savings into a profitable investment is to set the saved money into an active financial system such as deposits, mutual funds, Shares and so on.
Nikhil Singhi describes the selection of right investment instrument to put the saved money can improve the rate of interest giving back a reward of income along with the invested money. For instance if a person invest his or her money on a land and keep it idle for some years then it may not be a right choice or instrument for a sensible investment. Acquiring a loan or borrowing money to convert a land into an income generating asset gives you more options of return and also a payback mechanism for the borrowed money. After paying back the debt the asset will give you enough returns for the betterment of your future.
As the financial sources grows for an individual their modes of savings and investment should divert towards different investment strategies to form more savings and assets. The amount of saved money and expenditure should meet up on a right avalanche to make sure the safe and secured financial decision of your life.
