Saving money is something that we all know is good for our future yet we fail to do it. Saving money is a much broader concept than just spending less and stashing away your remnant salary. It involves planning before spending, investing your money and more. So here are some tips on saving your hard-earned money in an efficient way.
1. Record every expense
This is the most crucial thing you need to do before you actually plan out a budget. Keeping a record of each and every expense will give you an insight into your spending pattern and you would be in a clearer position to decide what all expenses were actually needed and which of them could be ruled out in the future.
2. Prepare a budget
After tracking each and every expense, you are in a position to see where your money is going. Now, prepare a budget by clearly listing out the sources of incomes and the expenditures you are most likely to incur. At first, try to include only very necessary expenses like food, shelter and clothing. This will increase the corpus of your savings and overtime you’ll be able to afford luxuries without exhausting your whole salary.
3. Invest somewhere
Stashing away all of your saved money into a locker is not a wise decision as money loses value over time. You can invest some of it or all into various options trending in the market. Beginners can open up a savings bank account or invest into mutual funds which are considerably safer than the other options available.
4. Prepare a list every time you go out for shopping
We often tend to buy useless things just because they catch our fancy. Preparing a shopping list will ensure that you don’t end up buying things that are not actually needed. Prepare a shopping list and adhere by it, you will end up saving a lot by the end of the year.
5. Pay your bills, debts or any outstanding expense on time
Some of us are habitual of paying our bills and debts after the due date. Well, those 100 bucks over your bill may sound like not a really big deal but if you are paying them off late every month then you’re really incurring a lot because of your laziness or ignorance. If you try to pay your bills on time, you’ll not incur extra charges, and ultimately the corpus of your savings will increase. As simple as it sounds, right?
These were some tips on how to save wisely; we hope that these help you to save some for a rainy day. Do you have some tried and tested ways of saving more money each month? Please do share them with us in the comment box below.
Article by Bhumika Israni