What is Money? Money is anything that we can use to exchange for products and services. Early monetary systems involved shells and other natural objects, whereas money today usually takes the form of coins and bank notes.
Why is saving money important?
1. For the present. Having enough money enables us to meet our day to day expenses: food, clothing and bills.
2. For the future. Saving money for the future is essential if we want to meet the needs that arise in old age and enjoy a happy retirement. Pensions funds are a great way to do this.
3. Beating inflation. The value of money is decreasing whilst the cost of things is rising every day. Thus, having savings helps us to stay afloat.
4. Helping others. Having savings of our own enables us to give others a helping hand when they need it.
How to save money?
1. Avoid unnecessary costs. Bring your own lunch and coffee to work, walk instead of paying for public transport, and hand make gifts instead of purchasing expensive ones, for example.
2. Recurring deposits. Also known as RDs, these deposits enable you to set aside a portion of your income if you are employed and get a salary on a fixed date.
3. Systematic Investment Plans. Also known as SIPs, these plans help us to turn our money into more money by investing it wisely.
4. Make a little money from everyday activities. Charge others to share your car with you, sell books on once you have read them, and so on.
5. Keep motivated. Making a savings chart that shows how close you are to your savings goals is a great way to stay motivated.
Conclusion: There are plenty of ways to save money and every little helps!
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