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Dear Hive Friend and Hive Learner Members,
Finance play a very crucial role in our life. Without finance independence we are depends on other and this is not a good idea to live a life. The best practice for the financial independence is saving and putting the money in best available assets. The best time to start the saving is the moment we start earning. As per my personal experience most of us start earing before marriage itself and this is the time when we have less expenses and less needs for daily day to day things. We can save more during this time and after marriage the expenses go on rise and it end up even 2 or 3x as compare to before marriage expenses.
Setting the short term and long term goals and plan our finance accordingly is good plan to achieve them. It does not matter how little you save the main point is you must save something. Another import point is discipline, its not like we are getting salary every month but putting in saving intermediately. The saving also should be aligned with the way we are earing. I love to share one incident happened with me. One of my friend introduce to me the concept of SIP. If you do not know them SIP is systematic investment plan. The SIP invest the amount invested in the share market and government institutions. The money invested used for purchasing the shares of different companies. So its like putting the eggs in different baskets instead of putting in single basket. It also helps to make us disciplined for the investment as we can set the frequency of the investment. In my case I choose the monthly option so a fixed amount get deducted form my bank account every month and get invested in SIP. I use to invest approximately 10% of my in hand salary. The disciplined investment give the benefit of rule of average against the volatility of market and also increase the investment little by little every month. I invested in market though the SIP for three years and after that I stopped. When i started the SIP their was not any specific goal in my mind so even after completing the three years I decided not to touch the fund. After some more years I planned to purchase my first four wheeler. My family was expanding so it become the need for my family. I was in need of fund to purchase the vehicle, and at that time the SIP was come into my mind. I checked the fund value and surprised to know that the total fund value was more then my expectations. I was in great need of fund and that was a great relief for me. At that time I realized the power of discipline and the diversification of funds. Combining both was great idea and the outcome was awesome.
By learning the above lesson I stared the SIP again and also advice to my knowns and collogues to start the similar discipline and diversified scheme to get the benefit against the volatility of market. We must start the investment and saving the moment we start earing, the early we adopt this habit more will be the benefit to us. They way the inflation increasing, our investment must be more then that then only we can beat and call it better investment. I am not a financial adviser so always do you search before investment. After all its al your money and you should invest it wisely.
Please do share your views in comment section.
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