Investing Make an investment plan - Savings are meant to keep us warm during stormy nights; and when used wisely, savings can help us achieve financial freedom before we actually retire. Make an investment out of your savings to generate income. For first time investors, use twenty-five percent (25%) of your savings as a start up investment. A good household budget is not something that restraints you from spending altogether but it allows you to spend your money wisely. A workable household budget is the ideal project that manages your expenses, reduces your debt obligations and builds your savings for a promising future. How to begin household budgeting? Personal budgeting could make some things possible even with a short supply of water. You can ration your little supply of water efficiently. The water you have used in taking a bath can still be used for the cleaning the bathroom or for washing and brushing the dirt off your shoes. The money allotted for transportation should be handled sensibly. Far too often small business gain good profits, but they do not have enough operating capital to meet their needs. Consequently, they may be forced to sell out to a stronger competitor or close the door and put the company out of business. But with budgeting and forecasting, this small business will be slowly on its way to becoming big and strong enough to withstand the demands of the competitors and the entire market in general. CUT ALL CREDIT CARDS It is best if you don't use credit cards, or even own one. If you think you're responsible enough to use it in emergency situation, then leave one for those times. Buying a Gucci dress for a hot date isn't an emergency situation. Paying for school tuition fee or electric bills is a right example of emergency situation. So instead of putting it off, begin by making a small, automated contribution to your savings account just after each paycheck. Even as little as $10 a paycheck can add up fast in a short period of time. Then, slowly begine to increase the amount each month. And if it is your child's education you're saving for, you'll need to be a little wiser and start a little bigger than that now: Alwayas assume that you will need to save between $115 and $284 a month.