How To Control Impulses and Save a Sufficient Sum of Money?

Posted by Deb Dutta on August 10th, 2019

There is a sweet spot in every investor's lives where they are earning enough but is devoid of any responsibilities. This is a great time to enjoy and explore life. But it is also a time when one can get a head start on their savings. Only the smart investors realize that saving at least something is a very good move.

After all, if there is an option to save, then why not? A little bit of fun along with a bit of responsibility together can make for an excellent combination that allows them to spend in a guilt freeway. But the real challenge lies elsewhere. It is how to “protect” their savings from themselves? There is only so much self-control they can exercise at any given point of time.

It is easy to begin considering big spends such as the new smartphone that just hit the market when they see a relatively big amount accumulating in their bank. So, the question that arises here is, what can investors do to make sure they allow their savings to grow and achieve much bigger things than their impulses would allow?

A simple 3 step program that will help out investors

Money should not lie idle in the bank account

The first step is to not let the savings sit idle in the bank. Learning more about financial goals and starting to use them to their own advantage, is what every investor should look forward to. And in this case, experts like Wealthclock Advisors can help them out.

Link the money to a big but achievable goal

Everyone should dream big. Nobody must settle for less in life. Every investor must think long term. One's savings today can buy them a smartphone. But saving for a longer time period can help them go on a foreign vacation just a couple of years later.

So, every investor must think big from not just a career and salary growth perspective but also in terms of their financial goals. They should make sure that their financial goal is big and achievable. This will help them select the most suitable investment tools like mutual funds.

The right investment as per the big goal

A week-long vacation in the beautiful venues of Europe can cost people about Rs 3 lakh per person. They would obviously think about taking a loan for this cause. But in reality, the plan just needs 48 months and Rs 5000, to begin with. Anyone can go on a vacation on loan. But true coolness is going on a foreign vacation with their savings, grown with some smart decision making.

The investor can save Rs 5000 per month into a stable and simple which will give them about 7% returns every year. For the best mutual fund investment advice, they can visit the expert financial advisors.

So, these are 3 useful steps that will help investors control their impulses and save money to fuel their dreams!