A person’s salary range does not usually reflect a person’s savings account. While one’s income is definitely a big factor in the amount that a person saves, lifestyle and attitude towards savings are equally important factors! It is common for people who start earning more, yearn to increase their lifestyle as well – sometimes even more than what they can afford. There are also those who do not earn a lot yet practice a good discipline in keeping a consistent addition to their savings – and even find ways to extend it.

You can start saving by opening a savings account in your name. This savings account should be completely separate from a payroll account; this account should not to be touched. Every pay day, it is a good habit to immediately withdraw a certain amount from the payroll to deposit straight into a savings account. This builds the discipline of touching only the money in one account.

In order for this to work, it is important to take time for computing a realistic monthly savings goal. Write down all necessary monthly expenses, make allowance for personal frills and make sure that the amount set is realistic. Having all expenses written on paper gives the person a better perspective in one’s spending. From the list of expenses, it will be better for a person to figure out which part of his/her life can be simplified in order to cut the expenses to a reasonable monthly budget.

To make sure that the new budget is workable, this can be tested for a month and can be adjusted depending on the outcome. This is important in setting the discipline of sticking to a budget, if the amount is not realistic, one would most probably find himself taking from the “savings account” more and more frequently.

Give a few months for steadily building up a savings account. Once the amount is substantial, there will be opportunity to invest. There are low-risk investments available for those who have no time (or courage) to invest in the stock market or a business. Taking advantage of time deposits and mutual funds will not only help keep a persons savings, it helps one earn from their savings.

With these plans available, there is no reason for keeping money in low-interest bank accounts except for “parking.” Continue transferring money in the savings account for when a new low-risk investment opportunity is offered. Choosing the best investment plan that fits a person’s resources and needs is important.

Financial institutes and banks have specially designed packages for all walks of life. The plans also give investors a choice on the risk level to take in their investment. For mutual funds, the choices are low, medium and high lever of risk. The interest rate would vary as well – it naturally goes higher along with the risk. These plans are also continually changing and new offers are always in the market. Making low-risk investments should be a part of life and one must always be in the look-out for opportunities.