We have heard about saving money and spending it in times of need from our childhood. As children, when someone from our extended family came and gave us the cash, our parents taught us to keep the amount as surplus and use it when in need of the same.
But some of us might be concerned that even learning this from such a tender age, why does our income come and go like non-seasonal rain?
No problem, we are here for your help to explain to you the process in which you will understand why savings doesn’t always mean spending less.
1. Put Your Accounting Hat On
It is not as tough as it sounds, and you just have to pick up a paper and pen and jot down the expenses that demand your money each month. We are even talking about the money you spend on purchases out of impulse.
Expenditures like Groceries, education fees, rent, transportation charges, entertainment, EMI’s, etc., decide the amount you would demand monthly for all of these.
Analyze how much cash you spend on weekend drinks and dinner nights to come up with an amount that counts under your monthly expenses. Now you would know where you could smartly cut off the expenses and still spend on things you enjoy doing.
2. Save Before Spending
This one must hold a space in your brain at all times when finances are in concern. It would help if you always had a savings plan before you start spending extravagantly. The first step you can take in ode to start your savings journey is opening a savings account in a renowned bank that suits your needs best. It will also help you gain interest in your already saved funds.
3. Make Money with Money
As the name suggests, making money from money is to make more money from the money you already own. One of the best examples of this can be a zero-balance account opening online, which will help you earn interest on the amount you keep saving in the bank account. Another such option can be Mutual funds, PPFs, SIPs, shares, stocks, etc. these will also help you make money from the already owned money. Also, such investments help you save your taxes and act as an added advantage.
4. Set a Limit for Your Weekend Spend
While you go for that weekend drinks plan with your friends, a family dinner, or a movie night, this is where some savings can be made. If you are going on such outings each week, you can cut it down to 3 times a month and then 2 to save that extra money. If you still want to drink and party, plan for house parties, and this idea will also make you save some extra cash in your wallet.
5. Pay Bills on Time and Wait for Sales
Do you hold a credit card? If yes, paying your bills on time will save you from giving the extra interest charges as late fees. Also, while shopping for the perfect bag or that expensive jacket from a high-end brand, wait for sales and discount seasons to make that purchase. It will help you save a little extra.
6. Make Smart Choices
Keeping track of your daily expenditure can reveal major spending areas and highlight the minor charges that can later balloon into a prominent figure. Download applications that help you monitor daily expenses; some direct link cards, so you are updated every time you swipe or scan.