How to Save Money-Whether it’s free-falling off a bungee cord, retiring early and seeing the world, or having the financial wherewithal to maintain oneself without relying on others, freedom means different things to different people. Unfortunately, however, many of the liberties we once took for granted have been restricted by COVID-19.
Even though the country is rapidly administrating vaccines, many restrictions remain. It has also taken away many people’s sense of financial freedom, whether due to sudden job loss, wage decrease, or the current economic climate.
For people in various stages of life belonging to different age groups, financial freedom takes on diverse meanings. To understand how the epidemic has impacted almost everyone’s financial lives and how they perceive financial independence now. Knowing how to save money and make strategic investments is important, and this blog helps kickstart your savings!
How to Save Money and Invest Money for a Stable and Worry-free Tomorrow
Make a budget and stick to it:
Personal financial planning is critical. Income, expenses, savings, investments, and credit must be tailored to the family’s immediate and long-term requirements, desires, and life objectives. Moreover, in a shaky global economic situation, it’s critical to seize chances while preparing for emergencies.
In both of these scenarios, financial preparation can help you stay in control. However, it’s also crucial to actively manage, revisit, and modify plans and implement modifications in response to changing demands, desires, and the general economic situation.
Diversification across asset types is a fundamental concept of successful investing. This not only lowers risk but also boosts profits. When choosing financial instruments, it’s also important to consider the investment’s terms and goals. Equities, for instance.
It’s critical to have an emergency fund.
Emergency funds can be a lifesaver for you in these uncertain times. As the name suggests, an emergency fund is set aside for unforeseen circumstances. It might be anything from a medical problem to losing your work during the pandemic.
Someone laid off due to the epidemic, for example, may live off their savings if they do not have an emergency fund.
So, put money aside as an emergency fund when circumstances are good. It’s also a good idea to set away at least six months’ worth of spending. When determining this figure, be sure to include all of your expenses, including EMIs.
Also, rather than leaving your emergency fund in a savings account, invest it in a liquid mutual fund. Keep in mind that every penny counts in an emergency!
High-interest debt should be avoided:
Even if you have a regular paycheck in your hand, high-interest debt, such as a credit card or personal loan, is hazardous to your financial health. Consider how harmful being unemployed may be to your money.
If you don’t pay on time, the interest rate on your debt will continue to rise, increasing the total amount owed. And paying off such debt would take several years. So even if you’ve paid with a credit card, spend what you can afford to pay off the next month.
This pandemic will pass, but if we can retain and apply the lessons on how to save money & how to invest money, we will be prepared for the next time we face any such difficulty.
The Multipl Revolution: The Right Way to Save and Invest Money
We talked about saving and investing better in the sections above. However, the spending better part still remains. So, believe us, we will not lecture you on how you should look at getting discount coupons and all, but we can share some great money-saving hacks.
All you need to do is, install the Multipl app, select a goal for the expense you may have later, and start investing. The best part is that at Multipl, we provide you with complete security against market risks. So, even if the market fluctuates, we will keep managing your investments so that your money is safe.
Also, by saving through Multipl, you will not have to dig into your savings when the time to spend finally comes. Lastly, we have tied up with almost all the best brands to ensure that you get additional discounts and offers on your expenses. Now, isn’t that revolutionary?