8 steps help you to save and invest successfully

The importance of savings and investment together and what steps will help to achieve this effectively.

The culture of savings and investment has begun to emerge together for a successful financial life,

After some acknowledged that saving alone is not enough to achieve their financial goals. 

  Savings make you control and manage your expenses commensurate with your monthly income and avoid the debt and then stumble in repayment, but the investment helps you to increase your income and manage your savings. So he saw that good savings and investment together were the foundation of a successful financial life.

 

8 steps help you to save and invest together successfully

1. Identifying aspects of income and expenditure

- Income: There is a difference between the basic salary and the net income. The net income is the sum of the basic salary plus the allowances and allowances and any wage that you incur for any additional work and then subtracts all government deductions (fees and others).
- Spending: One of the easiest ways to identify and track objects of expenditure is to review invoices and disclose your monthly bank account. This lets you analyze your spend, "How do you spend, and what to spend?" To identify which items you can reduce or remove from your spend menu.
Here's the start of the savings / savings plan: subtract your total expenses from your net income to get the amount you can save per month.

2. List and categorize your goals

Through your financial goals you can see your investment needs. The goals are the torch of light that guides our financial way of life. So set your goal list and divide it as follows:
1. Short-term goals: goals that are achieved within a short period of time, usually between one or two years.
2. Medium-term objectives: objectives to be achieved over a longer period of five to seven years. There you have plenty to invest and make profits.
3. Long-term goals: These goals are characterized by a long period of time and usually take the form of retirement or other goals desired within ten years and more.
Categorize your goals and set them by period to set a suitable time schedule to achieve them

3. Calculate the value of all your savings

The importance of this step in determining the real amount saved and evaluated. It is your savings that determine your financial position more than your net income, and may include amounts deposited in the bank, money held at home, and other gifts in the form of money.
If the total value of these savings is small, it means that your saving plan is ineffective and must be changed (increase net income or reduce spending more).

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4. Assess your investment needs and your risk tolerance

You are not required to take a particular approach when you start investing. Investment instruments vary depending on your investment needs and risk tolerance, which vary from person to person depending on your investment appetite.
There are those who invest in the stock market and love the risk, and there are also those who invest savings in fixed deposits and savings accounts and fear the risk to a large extent.
It does not matter which approach will follow, all of which reflect financial goals that differ from person to person. So do not make this issue a burden on your decisions.

5. Request experienced help

After evaluating your investment ability, you should draw up a plan to direct your money and savings in different investment instruments to suit your needs and objectives. This step may require the assistance of an expert or financial advisor to make an effective plan while avoiding common mistakes.

6. Work dedicated to emergencies

It is a sum of money allocated to emergencies and the handling of financial burdens and unexpected problems, so as not to destroy your investment plan and change course to turn to losses for unexpected events, God forbid.
This amount can range from 3 months to 6 months of your salary. This amount can not be used for fixed-term investments such as fixed deposit.

7. Start planning retirement

Make your retirement plan one of your long-term goals, and try to start it early so you do not feel constipated when you retire and lower your monthly income, even if a little monthly increase gradually increase your income.

8. Flexibility of your budget and investment plan

Your investment plan should be flexible and changeable when needed depending on the events and changes accompanying you. For example, your salary, which you received at the beginning of your financial life and built on your investment plan, is likely to increase income after a period and then you will have additional money to invest and thus save Investing together and what steps will help to do so effectively.

We have provided you with 8 steps to help you save and invest together successfully. Do not forget to share it with others so that everyone benefits.