When it comes to money, it’s not just the investmentAn investment is made to give you a return. You make an investment if you use your money to buy either physical assets like property or financial assets like bonds and equity with an aim to receive income or gains... More 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 1/4^th 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.

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