
If a person solely relies on their salary, they are just above the poverty line. In these times of economic hardships, it is a dire need to have diversified sources of income for sufficiency.
Often, young graduates at the start of their careers are either unaware of the long-term benefit of savings or find it difficult to save. They spend superficially without considering their needs versus wants. It is here that others begin exploiting them by urging them to spend more - whether on celebratory treats or small expenses. If a person is kind, they become the subject of other's expectations and are burdened into performing that role.
A common theme goes: the fresh graduate secures a job and starts earning; they receive their first salary and begin spending it on their friends and family, celebrating milestones or partying at restaurants. Young people having meals at restaurants and wasting time and money on chai dhabas has become a common occurrence now that they have financial mobility. Even with limited income, they are likely to spend frivolously.
Another common inclination is the immediate purchase of a new phone or an expensive watch even if the previous ones are in good condition. Status, it seems, is important to keep up even if one is barely earning enough to sustain themselves long-term with bigger life expenses.
There are people working to fulfil their families' needs, to run their homes and afford schooling for their children. Some begin contributing to bills from a young age, and some are their families' sole breadwinners. After these people prioritise majorly contributing to households, they spend the remaining money frivolously instead of saving it.
Another pain point is that we as individuals love spending money on humanitarian crises. Even this costs our future selves. Although regarded as a virtue, this practice is, unfortunately, largely exploitative. Generous people will find that others seek them out whenever they are in need, establishing a pattern of receiving and never reciprocating. In such situations, it is tough to reject the other person lest it should hurt their sentiments. Helping others is not bad, but your altruistic actions should not cause you discomfort or trouble. It may sound counterintuitive, but you can't help others if you're yourself struggling. Sometimes, self-preservation is the key to real support. Only if an individual is fulfilling their family's needs, saving an ample amount for their future, ensuring an emergency fund for rainy days, and finding themselves financially secure should they get involved in helping others.
In this fluctuating economy, portfolio management is an essential skill as hard times may come without knocking. One should always be prepared for the unseen and have some savings to cushion them - a lesson well taught in the Quran, in Surah-e-Yousuf, detailing a time when Egypt had a surplus of growth of wheat and crops for seven years. They were consumed in controlled amounts, with the rest saved for the upcoming years. When an unexpected famine hit the region for seven years, Egypt had sufficient reserves for itself and was also able to help its neighbouring countries.
There are multiple opportunities to earn profit through investing and saving. There are various mutual funds in which an individual can save some of their income and earn profit. Some options even allow investing the smallest amount every month.
If you are feeling rather risky, another option is to enter into the stock market, but this must be done only when you have ample savings to cushion you, should you fall. The best way to do so is to purchase stocks upon which monthly or quarterly dividends are being paid. This is a great way for individuals to diversify their financial portfolios.
Savings and investments are a testament to discipline and sheer will. One has to compromise on improving their lifestyle and exercise a humongous level of self-control. But rest assured, in due course your efforts will bloom, and your future self will thank your wise decision-making in your younger years.
Pertinent to mention here is a saying by Warren Buffet: "Do not save what is left after spending but spend what is left after saving."
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