Once, Mrs. Chandrasiri was given a chance to invest in some ‘promising stocks’ by her husband. He too would invest the same amount of cash and at the end of the month decide which move was the most profitable. Mrs. Chandrasiri scoured numerous magazines and called up all her friends for some advice, determined to outwit her husband and impress him with her intelligence. Finally she made up her mind, confidently telling her husband that she would win this little game.

‘Meager pickings’ her husband complained, ‘seems like this financial crisis has really hit the economy.’ ‘Aiyo, what nonsense child! You wait and see what I have chosen, will you!’ she replied.

At the end of the month her husband asks for her returns boasting that his investment has done very well. Nothing can explain the horror that befell their household when Mrs. Chandrasiri explained that she invested her part of the money in a number of handbags that were bound to appreciate given their popularity.

Heaven forbid there are many women like Mrs. Chandrasiri who remain oblivious to this day about investments and the stock market. Firstly investing in a well known or ‘blue chip’ company is always wise. Given the levels of uncertainty in these volatile markets, smaller enterprises are more likely to make losses or even worse, forced into liquidation. Therefore one must make sure not to be the ‘bull’ buying shares on a whim, but study the market and see how well the shares are trading.

Although the stock market is popular, if one has a large sum of money available for investment there are a number of ways of making a wise decision. Whilst Mrs. Chandrasiri would enjoy using the money to fund her tour around the world as well as investing in a spa that is in dire need of hot tubs and massage chairs, her husband has other ideas. He would like to take this money and buy some land by the seaside. This land could then be used to build a small bungalow that could be rented out to tourists when it was left unoccupied.

Now if you ask me, Mrs. Chandrasiri’s trip around the world sounds spectacular, however is not very practical. This is because land is always appreciating which only means more money for Mrs. Chandrasiri. Once this was explained to her she fervently agreed thinking that she could later convince her husband to sell the now appreciated land and finally take her long awaited trip!

For those who have less money at hand to save, there are always other means. Another great method of saving that extra cash is by buying some gold sovereigns. Recently I hauled my mother to a jewellery store to show her what I would like for my birthday and I for one was astonished at the escalating price of gold. Yes, this method needless to say will be appreciated by most women as they believe that in the long run all of this aurous, luxurious gold can be melted down into a beautiful accessory.

Unfortunately most Sri Lankans cannot afford such luscious investments. The reason for this is that the majority of the population have very little to save after all expenses have been paid. It is key to get on top of all your expenses before tucking away that extra cash. Make sure to pay off all outstanding bills in order to dodge any extra interest charged. After the essentials are paid, health and life insurance settled, often there is hardly any cash left to save.

However do not despair! Even if you can only afford to save Rs. 500, it is better sooner than never at all. Further, one has to be able to balance spending on consumer needs as well as saving. Setting out a target amount to save is always a good start, making sure that your aim is achievable. When this is done it becomes easier to make decisions on your consumer spending. If your target is to save that Rs. 500, and you’re torn between two pairs of shoes, the answer is simple! Buy the pair that is cheaper! If by chance it is cheaper by Rs. 500, you’ve already reached your target!