Money Not Spent Is Money Saved

“Do not save what is left after spending, but spend what is left after saving.” - These wise words alone can teach you a great lesson on savings. Most people think saving money is cutting spendings. In fact, it is true; money not spent is money saved. But while putting these words into actions, people generally fail to concur. Only when one understands the importance of saving and its benefits, will he save money. 
Saving money can benefit you in a lot of ways. To start off, savings are the primary sources for emergency or any back up funds. When you have money in your savings account, you do not have to turn towards loans or borrowings. This also goes with the fact that you are free of debt managements and interest payments. Saving money is surely a wise step towards preparing for financially safer future or buying something big/expensive. Maybe you wanted to take a mini vacation to Bali next summer- saving money is the right way to accomplish that agenda! The money you save can also be used to invest in shares and businesses. Most people are able to make a fortune out of investments! 

Spending cash is way more easier than saving it, let alone making it. It gives you the instant satisfaction of finally getting that thing you always wanted. Keeping aside the necessities, all the money that you spend on other purchases are your ‘wants’- which you can definitely survive without. Spending according to wants and rather than needs can get you into serious financial troubles. Thus one must be able to distinguish between what is a ‘need’ and what is a ‘want’. These terms can be tricky and it can surely get difficult to distinguish if you really need that item or is it just another desire. But understanding the difference between these two terms can significantly change in the way you spend. After being able to separate these two, one can allocate their earnings properly between spending and saving. From what Warren Buffett suggested, knowing how much you need can help you separate an amount for savings. Thus what is left after that, can be spent; given that you first purchase the necessities. But most people tend to disrupt their savings pattern and spend all or most of their money sooner or later. Therefore savings is a lot harder than it sounds. One viable option to keep your savings in control is to open a fixed deposit account. You can deposit a fixed amount of money per month or as the stated period and only withdraw once the contract ends. Most financial institutions also provide great interest rates on fixed deposit accounts. Thus for the money you don't spend, you will be making some extra bucks at the end of the term! 

Some people may not agree with the idea of savings. These people choose to spend their money as they make it and keep the future planning for tomorrow. But it is all up to individuals to decide whether to save or not. In the end, saving money won’t hurt anybody; instead will be of good use to you. Thus for every penny you spend, think ahead; money not spent, is money saved!