This is a very common question among many engineers I have come across. I myself had this exact question some years ago. I started browsing and learning about the various methods to save and invest money. I will go through some of them here in this post.
A common trope I hear among people I know is, I earn well but I have no idea what is happening to my salary. It comes in at the start of the month and its gone by the month-end! I cannot save!
What is happening to the money do you think? Well, its being spent - plain and simple!
I want to acknowledge that some folks will have some commitments to fulfil for their family and maybe they have an education loan or even a home loan. Perfectly fine. You should take care of that. You should also spend money on necessities and for entertainment. But, you should keep some money to save and invest!
The trick is to turn this -
Savings = Income - Expenses
to,
Expenses = Income - Savings
Did you get it? It's the exact same equation but in the first one, savings is whatever is left after spending. But, in the second equation, expenses is whatever is left after savings!
That small change in your thinking makes a BIG difference in how much you can save. Reduce or postpone instant gratification and start saving for a rainy day!
Keeping the left hand side that is expenses low can ensure you boost savings. The only other way to increase it is to increase your income which is something else you should strive by improving your employability through experience and keeping up to date with the right skills in this fast paced software world!
Still worried you are not saving enough or you don't know how to save more? Feel free to connect with Pradeep Kaushik here - https://www.pradeepkaushik.com/connect
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