We kick of the year 2019 full of optimism, gratitude, and excitement for the year ahead. After what was hopefully a good Christmas break we all are trying to raring to go, and apparently, as many as 50% of us feel that customary urge to set some resolutions for the year ahead.

The top resolution that we make are mostly related to weight loss, exercise, money etc. So even as a broad estimate, this suggests that 15% of the population in Tricity try to motivate themselves into better money management habits at the beginning of the year.

So, for this reason, we have decided to kick-off 2019 with something a little different.

Let’s get started.

In order to understand better money management habits one ought to understand the importance of savings.



The importance of savings can be understood only when one succumbs to an immediate need for funds. As propagated by the popular financial tycoon, Warren Buffet, one must first save funds from his revenue and then plan to spend the remaining, instead of going the other way round. Savings act as a short term shield against sudden emergencies and fund requirements, which could be anything from meeting a medical emergency or a wedding.

How are savings different from Investment?

Savings are significantly different from investment in many aspects. Savings should be made by keeping aside a sum of money from one’s monthly earnings, on a regular basis. Basically, a short term saving can help you meet immediate financial needs such as buying a car, arranging a wedding, planning a holiday trip or else, making a significant gift. Always bear in mind that savings are meant for meeting short term goals and hence, they should be parked in an investment which is less risky. Consequently, it will yield less returns but the investment will remain safe.

However, making an investment involves a large sum of money, which can be set aside in high yielding options that carry a significant amount of risk. This money is meant to meet your long term financial goals such as retirement and education of kids. Be prepared to earn higher returns on your investment as compared to savings.

What are the Prerequisites to Save and Invest?

Saving and investing are crucial financial decisions that demand major consideration and thought. They cannot, and ideally, should not, be made overnight but given some thought and analysis, to identify which proposals hold maximum potential in terms of returns and growth. Thus, before you actually invest your money in some option, make sure that you have enough funds to meet your expenses at least for a minimum of six months. This fund will hedge you against unexpected loss of income or loss in business.


Whether to Save or Invest?

It can be a little tricky to understand which financial goals require savings and which require investment. Let us take a look at some common financial decisions which could need your consideration:

  • You are planning to buy a new car as your old one is likely to be unusable in the next year ~ Save
  • In the next three years, you are planning to start a family and move into your own home ~ Save
  • Marriage expenses of your child when he is still 15 years away from marriage ~ Invest but the same would be recommended as a saving in case your child is older and likely to get married soon.
  • You plan to retire in the next 25 – 30 years ~ Invest

Things to keep in mind

While you save, don’t ignore your important expenses just because you want to grow your corpus. Make proper provisions for all your necessities. Avoid unrealistic expectations from your investments – they need time to grow. Draw a proper plan to meet your short, medium and long term goals without impacting your day to day life. For proper guidance and better results, always consult an investment planner from time to time.


Beeline Wealth is a popular financial advisory service in Zirakpur, which can help you choose the best course towards savings and investments. Connect with them today to know what is best for your portfolio.

To be an intelligent investor and know your funds better. Feel free to discuss your queries at 99880-85522 & Mail at Beeline.wealth@gmail.com .