This is something that my dad had taught me from childhood, which is to save. He would always say people of our level will never be able to have a pot of money suddenly. Our pot of money will only grow gradually with our own efforts. He would encourage to save me a minimum of 10% from whatever earning I had, first it was the pocket money that I used to get from him, then when I started giving tuitions in my college days and later when I got a job. Every time he would tell me keep saving a little from what you earn and let it build up, do not use that amount unless absolutely necessary and then over a period of time you will see that you suddenly have a lot of money.

I do agree with him, we underestimate the power of compound interest. Even a small amount every month if accumulated for a long period of time with the right kind of saving scheme, will give a fortune in return. A decade back we did not have many earning opportunities, crypto was out of sight then and we believed in more of the conventional saving schemes offered by the governments and institutions. So in those times it was ideal to follow this practice. We do not realize how time flies and then suddenly big expenses come at our door step which we have to take care of and if we are not prepared for that then we end up in situations like taking loans and borrowing money from sources which can be painful paying off with high interest rates.

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Even in the world of crypto this strategy can be applied. We can buy on a monthly basis with a fixed amount when there is bear market and average out our cost. It is difficult to invest in big amounts at one time, so doing it small will gradually increase the portfolio. In this market there are some different rules which one has to factor in and carefully invest money. Crypto is volatile and unpredictable so you can not always depend on it for your major life expenses, like a wedding or higher education. Else you have to really be smart to time it well with the market ups and downs. But still there is always a risk.

It is best to distribute your savings and not have all your eggs in one basket. For middle class people it is important to do their financial planning years in advance. For marriage, higher education, goals to buy a house and such major expenses, money does not built up overnight. A better planning strategy from early age will surely keep us safe and prepared to meet these expenses.

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