Want to invest, but not save? Then create wealth by following these three formulas

Personal Finance: Whenever anyone is advised or recommended to invest or save, they say the same thing, in today's era of inflation, it is difficult to meet expenses, where to invest. However, this is also true in many cases. Everyone has to understand that as important as it is to earn, it is equally important to save and invest. Because inflation will keep increasing and the earning capacity will decrease with age. Therefore, the investment made today will help you to live peacefully in the future and in times of crisis.

Follow this triple account formula for savings

In the era of inflation, costs are constantly increasing. Therefore, it is necessary to establish a proper balance between savings, expenditure and investment. These three formulas can prove useful for a safe investment strategy.

First- start accounting for income

If you are employed, your salary will be deposited in your bank account every month. Or if you do business, your income will be deposited in the current account. We can name it as income account. This account tells about your monthly income. Not only salary, but apart from this, if you are getting income from any other source, then include it in this account as well, this will help you to know what your total income is in a month.

Second- Calculate the Cost

When it comes to expenses, it is always said that the more we do, the less we will spend. That is why it is important to estimate the cost. Make a list of your daily needs and expenses in a diary. Do not pay attention to unnecessary and secondary expenses. So you can estimate how much you spend per month. And you can also cut down on excessive expenses.

Third and most important – investment

Once you have established a balance between income and expenditure in both accounts, the next step is to invest. After estimating your income and expenditure, you can start investing with the remaining amount. The advantage of this is that the fixed amount to be invested does not have to be managed anywhere else. Make it a habit to invest, even if it is small. Then as your income increases, increase your investment.

There will be complete information from earnings to investment

With this formula, you will have complete information about income, monthly expenses and investments and along with this, the wastage of your hard-earned money will also stop. And your question that despite having income, savings are not possible will also be answered.