Depending on how exposed one is to this style of financial discussions, the money growing in groups concept can be considered fairly new and really undiscovered territory.
The following points are laid out in the hope that some clearer understanding can be gotten from this type of concept.
What Is The Truth
Firstly there need to be a few basic elements established before such a group style endeavour is formed.
These elements may include the need for such an endeavour, the amount of participants that would be deemed suitable, the kind of participant and their various monetary contributing capabilities, the frequency of such meeting and any other elements that would dictate the fashion in which the group grows its money.
For some participants, this would just be a safe environment to bounce ideas about and get feedback on proposals and business formulas, while for others it may be an opportunity to present a business plan to encourage other to participate with the intention of acquiring some form of group financing and commitment.
However, this may not be well received if the participants are not inclined to attend, for business sourcing reasons.
To be able to grow one’s individual resources faster when pooled as a group can be rather effective. When the combined resources are much bigger and more impactful the advantages it presents due to the availability of such funds will definitely bring about more opportunities, than when compared to the singular funds of the individual.
This style also presents other advantages such as being able to brainstorm and discuss in depth the impact and repercussion a particular business endeavour may bring about.
As a group, more views can be expressed and more often than not surprising discoveries are made. These surprising discoveries can actually help to keep those planning the business out of trouble which would otherwise not be foreseen.
Small Steps Lead To Big Success
Most people think that things done in a big way is the only way to gain the success that can be felt and enjoyed.
This is far from true especially when the big efforts don’t yield the desired positive outcomes expected within the time frame projected.
Mentally and physically, taking small steps would definitely yield better result in many ways, some of which are listed below:
When things are done in a big way, expectations are also high and everything connected to the huge commitment is also expected to be big in its returns.
This can have a detrimental effect on the mindset of all concerned and connected to the endeavour. When things start going wrong, and the projected outcomes are not visible or even worse not possible, the feeling of dejection sets in and this negativity can contribute to the individual losing focus and giving up altogether.
Learning to make small adjustments, especially when it comes to starting a saving plan will be a better option, as this small start will not overwhelm the individual and cause the exercise to be abandoned at the first sign of a challenge.
Another advantage of starting small is that the actual exercise of saving will help to give the individual more confidence once the results of such savings become evident.
With the ability to create this amount of savings clearly possible the individual may then decide to venture into taking on a slightly bigger savings challenge. As each challenge grows the confidence of the individual grown with it, until a very substantial healthy savings plan becomes a normal part of the individual’s budgeting exercise.
Savings Versus Pensions
There are some very obvious differences between the saving and pension platforms and it would actually be up to the individual to decide on which is best suited to them.
What You Need To Know
Elements such as character traits of the individual and his or her earning capacity would have to be taken into consideration when making the choice between the two options.
There is also the need to ensure the earning capability of the individual is both consistent and guarded. Other deciding contributing factor may include the current lifestyle and future lifestyle the individual expects to enjoy.
Being able to factor in as many points that will play a dominant role in making an informed choice is very important indeed. Therefore there is a need to be a discerning as possible to ensure the choice made now will bring forth the desired results in the future.
Perhaps the most telling difference between the two options is the fact that savings plans are mostly designed in a way where access to the cash is almost always easy and instantaneous.
However the same cannot be said for that on the pension plan where there is virtually no access to the funds until a certain age is reached.
For those who don’t consider themselves disciplined enough to keep from withdrawing from a savings plan, the pension is a better option.
For those who have a knack for making successful investments, opting for the pension plan not only be rather restrictive, but will also be of no present value to them.
From the taxation angle there are also some differences to be enjoyed which vary between the two categories. There is some tax relief that can be enjoyed for contributions to the pension fund which is not applicable to that of a saving plan.
However, the saving interests are not taxable whereas the pension income does have some percentage of tax tagged to it.
Remember that it would be prudent to take a small step that is less daunting and challenging, as this will eventually help the individual make progress even if it is initially seen as insignificant.