I recently came across this very unique, conservative but very effective savings system which I call the Piggy Bank Savings System. The system is very simple to implement and very easy to maintain. Simply put, the system is a disciplined approach to save for your various needs periodically. I know a couple of people who practice this quite religiously and I personally feel that its people like these who are better off especially in these uncertain times.
With credit cards becoming so important in our lives, living on Credit has become quite a natural way for everyone. What we fail to understand is that Credit Cards can really ruin all our financial planning. The reason is simple that they provide you with a false sense of money. However good you are at spending, the chances of you actually spending on something are much higher when you have to pay through a credit card.
This is the thumb rule for any kind of investments. So, let me start by talking about risk. Wikipedia defines Risk as “Risk is a concept that denotes the precise probability of specific eventualities”. The uncertainty that exists in the financial world gives rise to the risk associated with investments. Almost no investment is risk free. Even government bond and fixed deposits carry some risk although that is very low.