Please disable Ad Blocker before you can visit the website !!!

How to build a financial cushion? – Money Tricks: Lesson 8

by Money Puzzle   ·  November 18, 2021   ·  

When it comes to money, it’s not just the investment products that matter. Your understanding, awareness and behaviour is of primary importance.

To build a financial cushion, you need just these three things

1. Save, save, save

There is no substitute for adequate savings done right from the beginning. It’s never too late to start and try to put aside at least 1/4th of your income as savings every month.

2. Sustainable lifestyle

This means that you don’t need to bump up expenses with every pay hike. No need to go for a higher rental/EMI, a bigger car or higher spends on entertainment with each salary hike. A sustainable lifestyle will be comfortable, allow for indulges but at the same time have room for status quo through salary hikes which can then be used towards bumping up your savings.

3. In investing focus on safety and growth

Investing in safe assets is important for some goals, but in the long run focusing on growth or wealth creation is what can get you across the line. If you are too risk averse, you may lose out on calculated risks needed for growing your wealth. And you have to focus on wealth creation for your future financial security.

Also read:

  • Smell the risk – Money Tricks: Lesson 9

    Smell the risk - Money Tricks: Lesson 9

    Investing is one part return and one part risk. You need to know some of the basic risks which affect all kinds of investments before you make an investing decision.


  • How to build a financial cushion? – Money Tricks: Lesson 8

    How to build a financial cushion? - Money Tricks: Lesson 8

    When it comes to money, it’s not just the investment products that matter. Your understanding, awareness and behaviour is of primary importance.


  • How to know where to invest?- Money Tricks: Lesson 7

    How to know where to invest?- Money Tricks: Lesson 7

    Too many investment options? You are not sure where to invest and how much to invest? Here is an easy way to help you decide where to put your money.


Leave a Reply

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from MoneyPuzzle.

You have Successfully Subscribed!