In the world of cut-throat competition and rising inflation, the quote “Money saved is money earned” fits best to our fast-paced uncertain lives. Human life is unpredictable; we never know what situation may come before us requiring huge financial expenditure. In such a scenario, our savings acts as the only “lifeboat” that let us cross the storms of life without facing a huge financial setback.
It is a common mindset of people to consider saving, a burden or a restrictive action that involves cutting down on daily expenses. However, this is not the right approach to get going. Maintaining a budget does not necessarily involve quitting on expenses altogether. Rather, it is a constant practice which simply means prioritizing one’s financial goals and spending wisely on things that do not leave you in debt at the end of the day. For all those folks struggling out to save their hard earned money, we come up to your rescue!
Keep a track of your Expenses
Having all your expenses recorded will help you analyze the “bigger picture” in making your budget more robust as well as identifying the areas that require change. While everyone is cautious when it comes to maintaining a record of major expenses, the key here is to devote equal attention to those minor expenses that happen every now and then and eventually make all the difference.
One can download apps or take help of automated tools to maintain a record of their expenses. If you want to stick to conventional methods, a personal notebook, tally software or a spreadsheet program would help you with the same.
Stick to Daily Savings
Small yet consistent changes in daily routine can bring a great difference to your saving routine over time. All you need is to keep a close watch over your daily habits such as shopping, paying bills, buying grocery etc. Some comprehensive steps to kick-start daily savings can be:
- Be Proactive: A little preparation before going to the supermarket and listing down the actual stuff that you need will help you avoid overspending at the store. You can make use of gift and discount coupons to further enhance your savings.
- Plan out Bigger purchases in advance: Any expenditure that involves a greater amount of spending such as appliances, furniture, and electronics can be done on annual basis or during festive seasons to grab discounts and offers. Choosing the right home energy quote can save you a bunch of money as well. My friend was telling me they found a great quote through price comparison websites similar to Money Expert (https://www.moneyexpert.com/gas-electricity/).
Choosing the Right Tools
This is perhaps the most vital part that has will have a great impact in aligning your overall saving plan. If your goals are for short term, you can consider investing through deposit accounts like:
- Saving Accounts
- Certificate of Deposits
- Short-Term Bonds
- Investing in Bank fixed deposits (FDs) or recurring deposits (RDs)
For long-term goals, one can go for shares or mutual funds which are going increasingly popular these days. However, one should be aware that such investments are subject to market risk and also involve a high risk of loss of principal based on various factors.
Do away with your temptations
Many times, people give in to their temptations resulting in overspending on things that they don’t require. If you want to avoid such regrets later, all you need is to prevent yourself from that aimless walk to the mall or market store where you might give in to those shiny display boards and window items. Instead, go for a walk out to the park or a library so that you can avoid situations that could urge you to spend considerably.
Visualise in the Bigger Picture
Once you are already going well with a basic framework of your saving plan, you can move next to long-term saving plans that can ensure future financial security such as retirement. The thumb rule involves saving about 10 percent of your overall income. However, this can also vary based on individual goals and needs and the kind of lifestyle one looks forward to living after retirement. If one starts early, like in 20’s they can stick to the 10 percent rule, and gradually increase the bracket to 20 or 30 percent.
Sometimes the very first step is the biggest hurdle to get started. But a proactive approach, self-analysis and consistent firm attitude can play a very big role in taking things in your favor. Remember, saving now will directly translate to your financial well-being later. Happy Saving!