How To Do Real Savings

Having saving account may seem a little bit old fashion thing to do. We are all witnesses of insecure times such are ours. Not so long time ago, whole banking system crushed and many people lost almost everything they have been keeping for old days, future, studies. But, banks survived thanks to the government and federal interests. In a next few years, it seems that most people have been forgotten about whole banking catastrophe case. It is neoliberal age after all, and banks are the fundamental of that. Life came in order, no one knows how, but by some magic and for same tragic federal actions life on credit abides.

Although I’ve had savings throughout my lifetime, I was not acquainted with the essentials of finance. At some age when it is time to start thinking about days in future my parents advised me to stash money into saving account and wait the amount reaches $1000 and then to reach for someone who has experience in investing – stupid thing to do ! Later, when I was more mature about these kinds of things I was quite convinced that I must invest as much money as possible in order to produce more money but to leave only small amount of money for short expenses. Later on, it turned out that advice was the worst one I could get.

Now, when I’m 30 years old and after creating my financial stash for the upcoming future, this is what I have figured out as the truth :

– First and the most important thing is how to learn to evolve trough knowing yourself much better and your place in the world around you. Behavior and habits, like everything else in this world, have aftermaths in financial mean. Try to comprehend these aftermaths and then your behavior will change according to your net worth, if that is what you are really want.

-Savings can render effect on the long run. Essentially, it is surplus of your income/expense ratio. Any amount of money that goes above the expenses on monthly basis must be saved to savings account. Your savings shape your liquidity.

– If your debt equals to mortgage and your rate of savings is in good condition, think of HELOC. These rates often goes above the savings account and money that is saved by not paying interest’ is tax-free. Use a savings account to stash your money until you are able to make the final payment and get rid of the debt and its burden.

And possibly one of the most important things to remember:

-Savings can create a chance. If you have money on your saving account, that gives you the choice and ability to take advantage of chances that others would probably miss.. So, don’t wait for someone else to come and put your financial life on good ground, do it for yourself. It is possible.