Question

In a few sentences, please explain how you can save more money. What actions can you take to save more money? How can you distinguish between your “needs” and your “wants”?

Answer 1

Money should be save for future needs because no one knows that what will happen in future therefore it is better to keep money preserved when you are earning. Here are some ways by which one can save money

- Transfer some portion of your salary or income into recurring deposit or in mutual fund

- Buy shares of any company for a long term

- Keep a secret place or a bank account where you should deposit some amount of money on regular basis

- One can also invest in life insurance policy

- Sale old or unused items at your home

- Don't spend more on shopping

- Write before going to shopping that no extra item you buy

- make a monthly or weekly budget and spend according to that

- do not use or limited use of credit card etc.

Needs are something that you must have, in order to live. On the other hands, wants are something that you wish to have for comfort in your life.

I hope this clear your doubt.

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