Saving and Investing Central to Financial Independence

While increasing earnings is perhaps the best way to attain financial independence, saving and investing are almost just as important and therefore should never be ignored under any circumstances.

I understand that in today’s tough economic scenario, saving is much easier said than done – incomes are dwindling while expenses are showing no signs of withering, which only makes saving that much tougher. Yet, I also know that if we all make the necessary concerted effort, saving will surely not prove to be as tough as many make it out to be.

For instance, do you really need to buy that latest smartphone launched in the market, especially when your previous phone is also relatively new and doing just fine? Then do you really need to buy more clothes and shoes and other paraphernalia, when you already have more than your share of these items in your closet? These are questions that you need to ask yourself consistently, and as you will find, the more disciplined and prudent you get with your expenses, the easier it will be for you to save.

Taking on from there, merely saving money will not suffice; you also need to make concerted effort to invest the money that you save. Otherwise, presuming that you simply tuck away the money that you save in its physical form at home, you will naturally earn nothing extra. And even if you simply leave it in your bank account, with ever dwindling interest rates on bank deposits, there isn’t much that you will earn that way either!

Instead, your endeavor has to be to prudently invest the money that you save; that is how you will eventually be able to increase the quantum of money at your disposal. Not only that, depending on the kind of investments that you make and the rate of returns that they offer, you could easily be looking at a large kitty as time goes by. 

NEVER Put All Your Eggs in One Basket Though!

Given the context of the above mentioned, it is also very important that you remain investment savvy by not putting in all your eggs in one basket, however lucrative that proverbial basket may seem. For instance, if there is a financial planner or investor who promises you a rate of return of 20% or more on investments you make with that individual, don’t get carried away! Such high rates of return are really rare and typically not trustworthy.

Instead you should look at more secure investment options, even if the rate of return is low, on a diversified basis.

Take a look at www.renegadeuniversity.net .  Set aside some time to read, watch the videos, and ask the hard questions.