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| English: Chart of United States Personal Savings Rate from 1960-2010. Data source: FRED, Federal Reserve Economic Data, Federal Reserve Bank of St. Louis: Personal Saving Rate [PSAVERT] ; U.S. Department of Labor: Bureau of Labor Statistics; accessed August 14, 2010. (Photo credit: Wikipedia) |
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| "WE ARE SAVING THROUGH PAYROLL SAVINGS" - NARA - 516067 (Photo credit: Wikipedia) |
SAVING FOR THE FAMILY
www.familytodayforum.com
Saving
for the Future
By Nadir
Naeem
A
detailed view on the importance of savings and investment, advice and direction
into the best areas and necessary steps for its adoption and implementation.
The art of saving is a very important and vital need when
acquired, rewarding and constructive when applied, helpful and wise when done.
It seems to promise commitment, dedication and execution.
In fact,it is very simple and easy to have a proper
Saving Structure, accumulating and generating funds for an individual’s future.
Saving carefully can result in a Progressive Parallel System expanding on daily
and yearly basis. The progress will convince the holder for its accuracy and
effectiveness so it becomes a practice than just an effortful habit.
Here is how the various methods generate different long
and short term Goals/Funds/Savings and are extremely safe and easy to guarantee
a promised secure saving and future.
First, it is important to know that savings are very
beneficial in times of need such as after retirement and old age, in crises and
emergencies, joblessness and illness. It can also be a parallel reserve asset
for attaining higher futuregoals, children’s education, marriages, purchasing
property or a business.
There
are two basic types of savings and investments
when generating a normal routine income, depending on the volume and size. The
present uncertain times insists an employed person to find multiple ways of
income, overtime and odd jobs are definite ways to increase volume. Wise
budgeting for monthly expenses save a handsome amount and savings done wisely
secures the future. Differentiate
between “The Needs and Wants” and practice the“Do's” and the “Don’ts.” Define and realize the true need and priority
of your happy and secure life.
Short
Term Savings include: pools, committees, bank saving accounts, saving
certificates, foreign currency, gold, jewelry and bonds.
Long
Term Savings include:retirement plans, insurance, investments, property and locomotives.
It is very necessary to know how the system outside our
daily life affects our living and when once understood, is easyto manage with
comfort.
Avoid
unnecessary renovations, rents, taxes, debts, multiple and expensive household
items, credit card debts,banking services/Internet banking, ATMs,mortgage broker
expenses, holidays/vacations,junk offers, stock markets, money lending, loans,
socializing costs and an expensive lifestyle.
Exercisecontinuous
monitoring of tracking of expenses, budgeting/purchasing power, cost cuttings,
ownership and resale value assessment of assets, memberships, smart shopping, discounts
and deals. This could increase huge volume in savings.
The returns and rewards of savings are priceless. A wise
“investor” divides his investment in equal shares and into different plans to
secure his savings from any loss, damage, unseen or unevaluated/forecasted
event.The present state and condition of financial markets leaves an investor
reluctant. Savings, when invested in proper places, can increase the overall
capacity and grip of an investor, hence the turnover multiplies after a few
years automatically growing into a “Structured Investment System/Backup
Reserve.”
Some
of the different types of Investment and Savings:
The
most easy and affordable are:
1. Retirement Plan:Most
government and private companies provide benefit to their permanent employees
with financial security facility and is available through minimal salary adjustment
of 2-5% for example.The return is a saving fund and pension plan at the time of
retirement.
2. Insurance: Minimum
investment required yearly for a solid, profitable and guaranteed secure plan
as per requirement of the client. A whole life self-insured person can take up
to certain education/marriage plans for the children with minimum yearly
amounts on each. Health insurance guarantees you free medical, hospitalization,
treatment and surgery of life threatening diseases such as heart attack, tumor,
cancer etc. at the cost of an additional 2.5% of the yearly payable amount
known as “The Premium.” An investor, or a policy owner, can withdraw one, or
all, of his savings,or the generated profit/interest after a few years or at breakeven.The
returns are 2.5 to 3.5 times higher of the actual amount saved in 15 to 20
years. For example if one insurance plan of 12,000 USD/year is carried for the
next 20 years equals to 240,000 USD but has actually converted into 550,000 to
600,000 USD at maturity. Insurance also provides accidental death or disability
coverage.
3. Individual bank
saving accounts: Would generate a profit up to 7% or more of the amount on
yearly/half yearly or monthly basis. Junior accounts for children could build a
healthy practice of saving money.
4. National Saving
Certificates and Mutual Funds: Banks would provide fixed profit amount on
maturity after a certain number of years. The profit could be as high as 10% or
more annually.
5. Foreign
Currency/Gold/Jewelry/Bonds: Bought and kept safe in a bank locker with
valid insurance and documentation could bring much higher gains and profits.
6. Committees:
A group of family or friends could combine a monthly standard amount for
example of 100 USD each from 12 members and can generate 1200 USD for one
individual every month. It can also be a way of having relaxed comfortable easy
inexpensive get-togethers with a focused object of saving.
7. Pooling:
This activity done individually, or with the family, can set small amounts of
money. Every member should contribute daily even if it is single coin to “The
Piggy Bank.”
Other
areas of savings and investments are:
8. Business Investment:
Businesses offers for co-ownerships or partnerships. This area needs thorough
experience, investigation, research, policy, documentation, terms and
conditions, market analysis and analyzing the actual value or expense. A
sustained profitable and progressive business needs proper evaluation and
judgment. Investing in a cottage industry for example done within the family or
starting with minimum investment in a particular business and growing the
amount after increased profit returns and generation can promise further
development and assurance.
9. Property
Investment: Investing and purchasing in property is better than living on
rent. Land value increases slowly and steadily through a long period. Proper
assessment, evaluation, cautions and professional advice is compulsory.
10. Locomotive
Investment: Well maintained cars and motor vehicles kept for a certain
numbers of years can save huge amounts instead of changing to new makes and models.
By creating a balance in earnings and spending,saving
different amounts and volumes, investing in proper plans, areas and assets,
setting realistic goals and terms, a common man of today could transform into a
future potent and successful investor. Implemented and executed wisely, safely
and patiently.
I wish the best for your plans and growth. Start saving!
Nadir
Naeem is a media director, producer, designer and writer with over seven years
of professional active experience. He has been writing for various e-magazines
and blogs currently holding the position of Community Manager at BlogyMate. He
is also a qualified Insurance Executive in a Multi-National Company.
