With inflation going high and prices certainly not going down, saving money is becoming harder day by day. Soaring travel expense and rent makes it even more difficult for people to save. While most of us are rowing the boat of paycheque-to-paycheque cycle, there are people who defy all odds and manage to save from their income. The extra savings can be used in many ways, but most people end up spending the money. If you are someone who can manage to save after all the expenses and find it difficult to manage it and eventually end up spending it, this this a perfect read for you!
Let us see what you can do with the extra savings:
Pay of your debts/ loans
Debt(s) sum up to be a large part of a person’s liability. Foreclosing your loans would help you not only save interest, but also reduce your financial burden. So, clearing your debts should be your priority. You can strategically reduce your debt. There are debt reduction methods like avalanche method and snowball method, you can read more about it here.
Building your savings
When you are moving towards financial independence, the next step should be building for your financial future. If you are saving extra, you should put it in your emergency savings account. This way you will not only build your wealth, but also secure your financial future. Emergency fund is usually six months of salary accumulated in your account to face financial hardships in future.
Expand your investments
An investment is the first step towards building wealth and should be a part of your long-term financial plan. Good investments not only help you grow your wealth, but also take drive you one step closer to financial freedom. There are multiple options to invest your income. From mutual funds to stocks, every investment reaps different returns. Though we would suggest you that you must explore your options first and then decide. No investments are risk-free, but they bring great returns.
Invest in upskilling
One thing that most of us overlook is upskilling. With this fast-pacing world, upskilling is not just an advantage, it is must! If you are doing all the things mentioned above, then you should focus on expanding your horizons and invest in upskilling. It will also help you in building you career as well as wealth in future.
There are just a few ways which can ensure that you not only save but build your wealth with the extra savings. We are sure that you have your ways too, so do not forget to share them with us on our social media channels- Instagram and Facebook.