Saving is an art
There are innumerable blogs on how to save and we don’t want to get there – just want to remind you that it is not always necessary to earn more to save more. It’s more about desiring less and keeping your ego in check, which happens when you do not worry about what others think about you!
Like Morgan Housel says in The Psychology of the Money – “Savings without a spending goal attached to it gives you the flexibility to wait and pounce on opportunity”. Savings can give you time to think and make better choices – Like instead of taking up the first job offered, wait for the one with flexible working hours or to invest in a course to learn new skills/ to invest in a stock when it is in a buy zone and enjoy the returns.
In short, to thrive you need to survive, and to survive you need to save. We have emphasized in our previous posts the importance of compounding, to compound you should be able to invest, and to be able to invest you need to save.
The market impact
In the last few months, global financial markets were not short of events – Britain’s PM resigned, and the USA announced a Fed rate spike.
It will be interesting to watch if Indian stocks can continue to stay immune to global macros.
Meta’s stock for example has plummeted by 25% and half a trillion dollars have already been lost this year due to a continuous bear run. One might look at this scenario as an advantage for an entry into stock markets for new investors or for the existing ones to consolidate their position based on the correction.
Begin small, grow big
After a few dark nights, there will be brighter sunny mornings, so instead of staying in the darker nights, let us convert such threats in the markets as an advantage for a new beginning. Volatility is a price we pay to stay in the market and compound in the long run.
Have you ever heard of the Latin phrase “Sic parvis magna”? It translates to “small beginnings leading to greatness”. So, don’t focus on suddenly saving 80% of your income because you are bound to fail to do so.
On the occasion of world savings day why not start a SIP with your savings and rest the constant brain share involved in timing the market? A SIP gives you ample opportunity to grow with a bare minimum investment starting at Rs. 500. So, start investing into a SIP today!
Keep growing, keep saving, and keep investing. Happy World Savings Day!