Did you saved some pennies?- Few Handy Tips


“A penny saved is a penny earned- Benjamin Franklin”

As a kid many times my mom gave me a gift of a beautiful cute ‘piggy bank toy’ so that I get motivated to save money. Receiving only few cents as pocket money was all that made my little wallet boost. And those cents were either spent on buying some lolly, ice cream or cookies at school. And when mom used to ask where I spent my pocket money she used to grimace and always said that all these things that I bought at school were already available to me at home by her. But still my piggy bank was always empty.

When I grew my needs changed and though I was not much demanding but looked for more pocket money from my parents. At that time the structure of that same gift from my mom too changed. She used to bring creatively crafted large size piggy banks from the local potter to attract me. Some made of wood or clay with designs and motifs of elephants and fish of my liking. I may have put a penny or so in it and few days later had to break the piggy bank to take it out.

It was but after my college days that I realized how difficult it was for my mom to earn money as she worked day and night to raise me and my brother. And that day I started saving money.

It is a secure feeling and the basic motivation that leads to saving of money. Also saving money is a psychological aspect of our needs and desire to be financially stable. Various reasons for saving money motivate individuals to make certain that money is budgeted accordingly, and savings are kept earmarked for use later.

Acting impulsively on things that we don’t want or excess spending on a particular thing is the wastage that could have been invested or spent on something worthwhile.  Although everyone’s situation is different, with certain methods and tips one can save money no matter who you are.

The Priorities

Make a list and prioritize your goals. You can’t get what you want if you don’t know what you want. Look out for your important needs and goals rather than lesser objectives which are not so important. As an example, the goals in setting certain retirement income.


The Age Factor

You must have seen that most of the insurance companies have age limitation to policies for investment. Also rate of interest and premium is affected as you become old. Thus principles of investing change as you age. The younger you are, the more risk you can afford to take because you still have time to bounce back from financial setbacks. Investing at late 50 should be far more risk-averse than investing at 25.

The Debts

It is normally not necessary to avoid debt altogether to rationalize your finances. As an example taking out a mortgage usually makes more sense than renting a home. Avoid using debt to live beyond your means, however, or you’ll end up living below your means later. If you’re borrowing money simply to pay off interest on existing debts, you may need to impose a period of austerity on yourself to pay off those interest-producing debts.

The Customized Budget

Individualize your monthly budget to fit your lifestyle and preferences. If you don’t watch much TV, for example, 600 channels of cable might not make much sense. By contrast, if you make money from the Internet, it might make perfect sense to spend money for improved connection speed.

The Ownerships

Your desire to own few things is also a basic motivation for saving money. As an example if you don’t own a house your desire to become a homeowner. The cost associated with purchasing a home is high; requiring you to save to help ensure home ownership can become a reality. The down payment required to purchase a home can run to more than 20 percent of the selling price. In addition, closing costs and settlement fees are also required to buy a house and can be saved for in advance.

The Retirement Plans

The desire to retire and have a healthy living with enough money saved up is a motivation for many people’s savings. You need save money to ensure that once you stop working, you will have enough money in the bank or in investments to fund your lifestyle, for the rest of your life. Many people are motivated to save money for retirement so that they can afford the things they both want and need.

The Recreation and Luxury

For some people motivation for saving comes because they want nice things. Not everyone craves luxury items or travel. However, for those who enjoy such things, saving money may be a necessity. Planning for a big trip or a large purchase, such as a boat or car, can provide the motivation one needs to be disciplined in terms of saving money.

The Future and Children

When kids are born most sensible parents are motivated to save for their future. Those with young children are motivated by the prospect of that child eventually going off to college. The rising cost of a college education drives people to save money so that a child can attend college without having to worry about finances. Some parents also are motivated to save for other things for their children such as a car, braces, a wedding or helping grown children buy a home.

The incidents and accidents

In life many times our fate and destiny plays a cruel role. It’s a simple fact that unexpected events and situations can arise at any time. Job loss, sickness, long-term illness and even economic issues can all cause a financial shift. Having a healthy savings account at the ready can help you get through challenging financial situations.

The Right Savings Vehicle

It seldom makes sense to allow your money to accumulate in a savings account for years. Instead you might select a money market account, a stock portfolio, certificates of deposit or a combination of any of these. Consider the alternatives from several angles including rates of return and liquidity.

The Changing Needs

Nothing stays the same. Interest rates change, currencies depreciate and new financial products emerge. Your needs may also change. Suppose a sudden illness in the family, may create a need for greater liquidity in your investments. Periodically review your budget, your spending habits and your investments, and make necessary changes promptly.

It is up to you to think and plan your hard earned money. Also do not sacrifice your happiness to become thrift. Unrealistic goals will lead to failures.  Saving is necessary. As money makes the world move and so does your saving makes your life move.

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