Wednesday, 30 November 2011

The Importance of Saving of Money

Saving of Money or Money Saving has become a very important aspect of Personal Finance . It is very important for an individual or family to save money for channelizing expenditures related to Personal Finance . Money Saving can be done on a personal level as well as on a banking level . On a personal level , money can be saved at home by storing it categorically in various places like safes or cupboard lockers . On a banking level , money can be saved into facilities like Savings Bank Account or Fixed Deposits .
            An individual or family should know where the money is spent . A record of the next month should also be kept . Every purchase occurred should also be noted . A bill or receipt for particular branded items should also be demanded from the shop keeper . Ultimately at the end of the month , account for every single amount of money should be kept .
            Notes of money can also be divided and kept into various envelopes according to their amount and denomination , based on the type of expenditure to be carried out . On such envelopes , names of the particular source of expense can also be mentioned by names of such as Milk Vendor , News Paper Vendor and so on .
            Various grocery items can also be bought from Government Sponsored Retail Stores as items over there are sold at subsidized rates than their actual maximum retail price . Thus , the total bill amount  arising out of the grocery shopping will be a bit less than expected . It is also better to buy food items like fruits and vegetables from Government or Private Sector Supermarkets as they can be bought at a reasonable amount , rather than having to pay more while buying from AC Malls .
            Even on a banking level , a certain amount of money can be saved into Savings Bank Accounts and Fixed Deposits . A Savings Account is meant for keeping one’s money in a safe manner and it earns a small amount of interest every month. This account requires either a low minimum balance of around Rs. 1000 or may require no minimum balance at all . This depends on the type of bank and the type of account .
            On a banking level , a Fixed Deposit is also another way of money saving . A Fixed Deposit Account allows a person to deposit his or her money for a fixed period of time , thereby earning that person a higher rate of interest in return . Fixed deposits also give a person a higher rate of interest than a savings bank account can . In developing countries like India , many people prefer to opt for investing their money into Fixed Deposits than into Stock Market Equities .
            Even in financial life , a person should avoid car loan or a credit card debt which is unsecured , as they can drain out money savings and are bad personal finance practices to follow . It is also better to avoid unnecessary buying of new gadgets and other such recreational items like toys , books , antiques and so on , if the need does not arise . Cutting down expenses on travel expenses is also essential , as a holiday trip can also be planned at a later point of time , when there is enough money saved for it .
            If such kinds of steps are carried out in the saving of money , then it would be a big boost for an individual’s or family’s Personal Finance Expansion .

1 comment:

  1. Saving of money is as important as to earn it.