Friday, May 26, 2017

Savings: Buying Mode to Selling mode

Richness is a preservative nature of human beings to spend only for high yielding returns
Why do you work?
  1. Shopping !
  2. For Living !
  3. Luxury !
  4. Passion !
  5. Supporting Family !
  6. Ensuring secure future !
  7. Education

But the actual question is 
Where does you spent most of your money?
  1. Shopping
  2. For Living
  3. Investments
  4. Education
  5. Debts
  6. Health
Here in reality most of the hard earned money is actually spent on points (1) Shopping (2) Living (6) Health and for some (5) Debts .
Hardly people spent on Investments or education which are in reality provides guaranteed returns.
Guaranteed returns means you are bound to receive more income had you spent on them.

People who are rich are rich because they have enough money to meet their demands .These money actually came from savings which was invested in returns yielding products which in turn generated more money.
Any luxury item which the rich have are from a fraction of amount they generated from the high yielding returns.
So they actually spent the earned money on below items and in the same order
  1. Living 
  2. Health
  3. Education
  4. Investments
Had they opted fro shopping (including costly clothes, vehicles ,luxury goods) rather than on education or investment their money would have gone, But education and investment actually generated more money .
As Warren Buffet said if you buy unnecessary goods then at the time of urgency you would have to sell necessary goods.

Thus to secure our future savings and investment is a necessary factor.
We should stop buying unnecessary goods and in fact to generate more money for investments start selling them as well if you have.
Money can generated by selling commodities which you no longer require or use which includes your old clothes, bag , utensils and mobile phones.
Instead if purchasing a new vehicle you should always opt for public transport . Even if you have a vehicle like bike or car you should use it only if there is no alternative. Your preferred mode of transportation should always be public transport . This not only saves your money but also your health and that of the society as it reduces the pollution in your surroundings.
If you have a vehicle but you are not using it then its going to consume more of your money in wear and tear and thereby vehicle maintenance so its better to sell it so that you can generate more income and reduce unnecessary maintenance cost.

Avoid writing pad or notepads and instead use computer/mobile notepads.
Instead of going for newspaper prefer e-newspaper which re available online free of cost.
Instead of opting costly pay channels prefer options like netflix which meets your demands.

Purchase seasonal food products so that you can purchase them at cheaper cost than buying them in off-season. Purchase foods products in lot so that you can avail as much discount as possible or get gift vouchers that support additional purchases.

Opt for coupon books or Sunday-newspaper that provide complimentary coupons. Generally the coupons which they provide can save more money in comparison to actually spending the money on purchasing various products.

Keep a track of your expenses, maintain your personal budget.
Use digital transactions instead of money transactions so that you can track your money 
Debit/Credit cards provide you the benefit of cash backs offers and complimentary discounts as well. So you end up saving more when you use these options.

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