It’s like a necessary evil, having money but not spending it knowing fully well you can, but you choose not to. Well, today’s read is exactly about how you can make this process at least less painful, if not enjoyable. Let’s begin!

Why Saving Money In 2025 Is Necessary

There is only thing in this world that never changes, and that is the universal rule of change itself. As paradoxical as it sounds, the fact that everything changes with time, this fact remains the same and everything else changes around it.

We must remember the effects of COVID-19 and other such erratic emergencies because they remind us what change can truly be like. And that’s why Saving money is important. Let’s discuss this further.

If you save money when the going is good, you may have money you need to spend when the going gets tough. Interest-free money that is there for you in times of need. That’s why Saving money is necessary, because we don’t control change all together.

How Saving Money Should Be Done In 2025

Not the burst the bubble here, but just leaving money left alone in your paycheck account every week or month won’t do.

Saving money means saving yourself. And to do that you have to make sure the money you are saving actually doesn’t deplete in value and in quantity both.

Saving Money And It’s Value

The value of money can be saved by keeping in mind the general speed of increase in costs of items that you use everyday. This is called inflation. To save money you must beat it, that is make sure your money is earning more interest than there is inflation, year on year, every year.

The rate of inflation differs by regions and countries. For example inflation near coastal areas is generally lower than in landlocked areas because it costs more to transport items from the coasts to inner land areas once they land off the ships.

Also it differs by countries as in growing and developing economies tend to have a slightly higher inflation rate then developed ones or even stagnant ones.

Let’s say, you hail from the USA, where general inflation rate yearly over the last 40 years has been roughly 4 percent (3.8 to be precise) every year, ever since the 1980s.

Then all you need is to invest in instruments where your money earns more net interest than 4 percent every year and your money will not lose value. That is how Saving money is done correctly. Net interest means interest after taxes.

Saving Money And It’s Quantity

Well this one is as simple as it is hard. Not spending money is like being hungry and having your favorite dish being dangled in front of your face and being tempted to eat it immediately but knowing fully well that you shouldn’t, for now at least.

The only successful way of not spending money is keeping track of it and knowing how much you’re spending every month. This jolts you back into reality every time you try to overspend.

We have already made a free comprehensive guide to budgeting in 2025. You can check it out below.

Also Read: Budgeting In 2025 | Free A-Z Guide | Rupee Gyan

Where Should I Put My Money?

There are many instruments provided by different vendors across platforms and markets. But which one should you choose. Since our goal is saving money without losing its value, we must pick one that not only beats inflation but does so consistently with a proven record of success.

Also, since you would be making monthly deposits into this instrument whatever it will be, it has to be liquid enough to allow transactions on a monthly basis, therefore, real estate is out, since most of you would not be buying a new house with every paycheck. What I would recommend is putting your money in any one of the top performing stable long term index funds that are passive in nature. Pick the one you understand the most, which might even be the related to your industry of work.

If you’re from techy background, pick NASDAQ, otherwise if you want a general purpose diversified fund for beginners, pick S&P 500, because it represents the US economy all over. And finally for a more advanced approach where you’re well informed with the market movements, I would recommend considering Dow Jones since it represents industry leaders in multiple industries. Researching a little bit if you’re choosing anything for putting your hard earned money in it is expected, even recommended.

Choose the vendor which you can trust with your money enough to be able to sleep well at night after investing with them. Depending on market reputation of the companies available in your country, choose the one you can trust the most. Most of them offer similar packages for passive index fund investing for retail investors like you and me who don’t typically have a billion dollars to put at stake in the markets.

Conclusion

The last and the most important thing is to not forget the big picture while dealing with the nitty gritty of things in these matters of money. We invest and save and do whatever we do with money because we wish to live the life we dream of. A life, we know we deserve, in our heads. A life full of peace and strength. And that’s why you must only invest in what you trust and what you know. We are not registered vendors with government in any way and that’s why we must ensure that you know the fact that your money is solely your responsibility and must be taken care of by you. Below are more finance articles that will interest you, you may check them out now. Invest, save and live wisely. Until next time, I hope you live an awesome life.

Also Read: Finance 101 in 2025| Free A-Z Guide | Rupee Gyan