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There are many ways to start saving before you invest. One way to do is to use the piggy bank approach. Start a schedule and put Dh100 every month in your piggy bank. If you start doing so, you will accumulate Dh1,200 by the end of the year.

The monthly contribution will be dependent on the goal that you want to achieve.

For example you may have a short- or a medium- or a long-term goal.

A short-term goal may be going on a family holiday to Switzerland or Antarctica.

Medium-term goal may be planning for your daughter’s marriage.

A long-term goal may be planning for your kids’ education.

Read to save

The corpus is a function of the goal that you may want to achieve.

The next aspect is to decide on how much risk — or price fluctuation — you could tolerate.

Consider how much of your investment mix should be in stocks, bonds, and short-term investments to give you a suitable level of risk and return potential.

Finally, pick a diversified mix of investments.