9. Know The Difference Between Saving Money And Investing Money

You can save money by putting them in a savings account, money market account or certificate of deposit. Keeping money in these saving options gives will guaranteed return. But when it comes to investing money in a financial product, such as a stock, mutual fund, bond, etc, there is a risk of losing money. Both saving and investing are smart things to do, but do not forget that the financial market is volatile and you should salt away some of your savings in safe deposit products.

10. Have A Three Month Emergency Fund (At Least)

You know the fact that life is very unpredictable so you should always stay prepared with a three month emergency funds which will help to meet any sudden expenses like house or car repair or for surviving after the loss of job. Though it seems difficult but it’s not something next to impossible. If you start saving money today, may be then after some day or after few weeks you would have build a saving nest which will have enough funds to match with our three months of living expenses.

Also Read: 5 Reasons Why Your Loan Could be Rejected