Saving in a systematic manner

We all want financial security – now and in the future. But many people do not have enough for the future. The reason is that they do not save in a systematic manner and do not invest wisely. To become rich, the sensible thing to do is to regularly set aside a part of your money for saving and then spending the rest on whatever you want or need.

The next step is to invest. Where do you invest? In the beginning, invest small amounts in instruments that are not too risky – this will give you an idea of investing and of getting returns on your money.

In-depth knowledge required

Investing is not easy but you do not need in-depth knowledge. Check out on the basics though and also where you are parking your money. Invest where you understand the mechanics and the risks. Do not blindly follow what others are doing, it can bring you losses.

Listen to the advice that people give you, then weigh them against your knowledge, your risk appetite, your objectives for investing, the amount of capital you have and then take a decision. Also have a back-up plan ready in case things don’t work out.

You can invest in stocks, mutual funds, fixed deposits, banks, real estate or business – but ensure you enough information to do so wisely. Diversify your investment – choose a variety of instruments so that your risk is minimized.

Take professional advice where required. Get help on your day-to-day dealings and administrative tasks. But keep control in your hands so that your money makes more money.