CHAPTER 4:The Power Of Smart Saving

Making money is important, but keeping it is just as crucial. Many people earn good money but stay broke because they don't know how to save. The key to financial success is not just how much you earn, but how much you keep and grow.

Why Saving Alone Won't Make You Rich

Saving money is a great habit, but keeping cash in a bank won't make you a millionaire. Inflation slowly reduces the value of money over time. That's why millionaires don't just save—they save to invest.

The 50/30/20 Rule: A Simple Saving Formula

A great way to manage your money is by following this rule:

●50% of income – Needs (rent, food, bills, transportation).

●30% of income – Wants (entertainment, shopping, travel).

●20% of income – Savings and investments.

If you can't save 20% right away, start small and increase as you earn more.

Where to Save Your Money

Instead of keeping money in a low-interest savings account, consider these options:

✅ High-Yield Savings Accounts – Earns more interest than a regular account.

✅ Fixed Deposits – Locks your money for a period while earning higher interest.

✅ Money Market Accounts – A safe place to store money while earning more than traditional savings.

How to Cut Expenses Without Feeling Broke

1.Avoid impulse purchases. Wait 24 hours before buying anything expensive.

2.Cancel unused subscriptions. Streaming services, gym memberships, and apps you don't use add up.

3.Cook at home. Eating out often is one of the biggest money leaks.

4.Use discounts and cashback apps. Small savings add up over time.

5.Buy quality over quantity. Cheap things break easily and cost more in the long run.

Action Steps: Building Your Savings Habit

✅ Track your spending for one month. Find areas to cut back.

✅ Set a monthly savings goal and automate your savings.

✅ Open a high-interest savings or investment account