If you think that locking up money safely inside a locker is the best way to preserve it, I would say you have got the tactics all wrong. The money is stagnant and so would be your financial growth. It is about deciding on where and when to utilize the money you have, and also being cautious that you don't incur any losses. It is all about money management.
Money management problem arises when your earning is either less or more than what you actually require. In the former case the person will have to plan how he or she is going to get the money distributed among all their needs. In the latter case the person is wondering what to do with surplus money in hand. We will start our discussion with the person who has scarce amount of money.
As the person in question is receiving a lesser amount, than what he basically needs to get his family running, the essentialities must be covered first before opting for luxury. Food, education and clothes come under the list of basic needs. Luxury can be opted once in three months or something. Whatever that is remaining in your budget can be put in a bank account as savings. They will reap rewards with time. Planning of the budget determines how well you can utilize the money in hand. After you have kept aside money for the family, as a citizen you are asked to do something for the nation - tax. Make allowances for tax as well. I am not sure how many people are strict about taxes but paying them will benefit you and your family in the coming years.
For those people earning more than what they basically require, luxury can be afforded. A more sensible option would be to buy any kind of assets. Another most common option is building up your bank account steadily. But assets, if purchased, have the tendency to double or triple their value with time. That is why people prefer to hold assets rather than just saving them as currency in a bank account. On the other hand people who have to reinvest their money in their personal business will have to be familiar with handling a ledger. It will help them keep track of where the money is coming from and going to. The profit that they reap is usually returned into the business in the expectation of reaping more profit next time around.
The money management becomes difficult when unexpected spending turns up. Like health issues, repairing costs etc. People usually have insurance for such problems which will cover them up. As for people who couldn't manage an insurance policy, loans are the only way out. There are individuals who are so strict about spending and always tend to save them up. They might seem as misers to the outside world. But during the time of emergency it is the savings that comes to your rescue. So always shelve some money aside expecting something bigger to hit you.
Learn from your experiences because it is so tough when you go down the ladder. Always prepare for the worst. Good luck with juggling your money.
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