Is it difficult to imply tips to save money? How else can you pursue desired financial goal? Let’s be honest, we have all wanted to save money and failed.
To make your process not as difficult as you thought it could be, we list you with some amazing tips to save money. This is a step-by-step process to develop your ‘money saving routine’ in the best way possible.
Here are some tips to save money like a pro:
1. List your expenses
Be it a fixed house rent or your variable mobile bill, the first step is to note down all the possible expenses you have. Every month won’t be the same, but you can chalk out an average amount to stick to. Organize your list in categories like electricity, groceries, rent and other probable requirements and then total the amount.
2. Make a budget
Budget is essential under tips to save money, as it frames your expenditures and possible savings. Once you know how much you spend, you need to look for ways to curtail it to the minimum. Budget resolves the likeliness to spend more and keeps you within your own limit.
3. Save your installments
We often have expenses that occur for a while and then stop – EMIs are the perfect example of that. One of the creative ways to save money is to save up your past expenditure as a continuing expenditure. We usually get used to an expenditure, so it is wise to replace a monthly installment as a fixed saving.
4. Plan on saving money
How to save money without a plan? Well, that’s not tough, but that’s not regular either! If your expenses seem too high, it is time you start cutting it down. Use a saving money calculator to keep away 10% to 15% of your income as savings.
5. Save for something
How to save money if you don’t aim to eventually spend it? Yes, use your saving money calculator and get closer to your goal on every interval. Save up for that Europe trip you always wanted or for the big fat wedding you dreamt of – save money to look forward to something or someone!
You could break your this process into short-term and long-term. For example, saving money for 1 year to buy a bike or saving money for 4 years to buy a house. Retirement plans could be the longest term you’d want to opt for!
6. Prioritize your goals
The money saving tips doesn’t end with making a budget. After you pull and pay out the fixed expenses, you need to know how to spend and save the rest. This could differ according to the goals you set.
7. Automatic saving
If you’re quite a spendthrift, this could be one of the best tips to save money for you! Most banks offer automated transfers, so when your salary gets credited, the savings amount immediately transfers into the allocated account. This fights your temptations and doesn’t make you think about it!
8. Watch your saving grows
Just like exercises hurt when you’re on the initial stage of weight loss, keeping money off your hands would hurt too. However, just like shedding significant weight, when you see interest adding into your bank, you will know how it feels!
All you need is to take the initial plunge and begin. It all starts from reducing an extra bottle of beer you want to drink or an extra piece of apparel you want to buy! It could hurt a little in the beginning, but you’ll look at it differently, when your savings grow.
Once you’ve completed a month or two, saving gets addictive. You will soon think about a better future than celebrating all at once!
— Swaminathan Sankaran (@Asktenali) 4 de diciembre de 2016