Friends
In the present recessionary time, one of the most talking topic is how much one should save out of his total income? I have asked many friends about the level of saving one should maintain in any case to tide over all the turbulant phases. A normal person struggling for his daily bread & butter feels it is impossible to save more than 10% of the income earned whereas a person just reached to a millionaire level suggests that one should save minimum 60% of the total income. It is without doubt that the savings are the only tools to help you overcome the challenging times but do we really give good attention to savings. Often we turn our focus to income and believe it would continue for long period and hence dont save much. Rather we discount our future cash flows also by committing more EMIs and bind ourselves. In my view the level of saving depends on the income and its nature but it should be minimum 25% at any level. This can be further increased upto any level depending on the income.
Related to this is another topic most talking about in the present time is "Frugality". This also a very sensitive issue which one gets aquainted only after spending. I believe we should not tempt to costly brands, pomp & show and expenses which are really not required or sheer wastage. It does not mean that we should try to become millionaire by saving . Please be aware that no one in this world has become millionaire by saving but yes to stay millionaire saving is required. Infact we should spend freely where ever needed.
We therefore should be frugal and good saver.
cpjain
1 comment:
HELLO, This indeed is very good topic, n well written. I really love reading ur topics. They r interesting n rather based on current situations n ofcourse knowledgeable. It is true tht one should save for his /her future life. Looking at the present situation,where earnings have been less ppl would be thinking how would they save , nothing is ompossible. One has to just cut down unneccessary , unwanted spendings, expenses n try to save tht if possible. It always depends on a person how much n where n when to spend. Here i would like to add, patience n understanding would help one to come out of the present situation. N rest is ur luck too. Hope this new year brings peace n prosperity to everyone.
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