Focus on the two main things you need to do to have sustainable financial well-being. For greater clarity, I will give an analogy with health - how to maintain a good state of our health. To do this, according to doctors, each of us needs 2 key habits: (1) a balanced diet and (2) regular physical activity/activity.1) To lead a healthy financial life, we also need to get used to doing just 2 key things: have a balanced family budget (so that our expenses are less than our income); regularly invest part of the salary received. As a result: we will have both a healthy body and a full wallet (wealth in the house). 2) Saving money for the sake of saving is a bad goal Saving should always have a big and bright goal that motivates and inspires us to do it. Moreover, do it correctly and on a daily basis. Important: you should not save on matches (i.e. on small expenses). This is only annoying and does not bring a noticeable effect. Always look for options to reduce large expenses, for example, for large purchases you can always negotiate a discount. This is the right approach to optimizing your expenses. * Share in the comments: what would you save money for? What big goal can inspire you to do this? I direct the optimized money to investments: to replenish my capital, the income from which fully provides for me. This is my Big Financial Goal. In matters of investment, you need to clearly understand the details (I talk about them below). 3) Savings and investments: What is the difference between them? When we save money in a bank deposit (or keep it in cash), our money loses its “purchasing power” every day. This happens due to high inflation, which quickly “eats” the savings we have made. The only way to protect your savings from depreciation is through investments. The main goal of which is to beat the inflation rate in the safest possible ways. 4) Many people are afraid to invest because of the risk of losing the invested amount. What has happened (and will happen) more than once when the process of investing your money is incorrectly structured. For competent investments, you need 2 main things: (1) a reliable strategy; (2) a sufficient amount of time that will allow your money to turn into impressive capital. Additionally: Read my other article “Where should you NOT invest your money? TOP 3 most dangerous places for your money.” I will be grateful for your likes and reposts of this article. Author of the article - Alexander Evstegneev, personal finance expert, author of 20 books on financial literacy, investor with 25 years of experience