They say that making money is an art. But savings is one too! Increase your savings so you don’t have to worry about having rainy days. It’s good if you are saving money already, but if you haven’t then kick start it on this World Savings Day (30th October). Here are a few ways you can build your savings.
Have a budget and stick to it
Make a monthly budget of your expenses and investments and set aside the rest as savings. Make a note of all your expenses, loan repayments (EMIs) and investments. Set aside the amount for these expenses and save the rest in the form of cash or at the bank. Make sure you stick to the budget at all times.
Cut down on expenses
Benjamin Franklin rightly said, “Beware of little expenses; a small leak will sink a great ship”. Cutting down expenses can majorly contribute to your savings. Even Rs 50 saved can add to your savings. Reducing your daily expenses can bring a major change to your savings. Here are a few ways you can cut down on your expenses.
Avoid impulsive shopping. Make a shopping list before you go for grocery or even clothes shopping.
Avoid last-minute traveling and plan your trip well in advance so you can get the best fares.
Car pool or use public transportation to work. This will help you bring down your fuel expenses.
Reduce electricity bills and water bills by using energy efficient electricals and reducing consumption.
Try cooking at home instead of eating out. Have pot lucks instead of having a part at a restaurant.
Know when to use debit and credit card
Using debit or credit cards can increase your expenses but they have various offers on them and it is sometimes cheaper to use credit/debit cards. Knowing when to use them is important. Credit cards come with a lot of cash back offers and discounts which can reduce your expenses. Use your plastic money wisely.
Postpone spending not saving
There will be occasions where you do not need a few things immediately. If you know you can manage without spending on these then postpone the buying till whenever you can. It’s ok to postpone spending but not saving. Try to maintain or increase your monthly savings but do not reduce your savings.
Having extra income sources is always beneficial and will contribute more to your savings. If your existing work doesn’t permit you to do a second job, there is still a way to earn money. Invest. Investing in mutual funds or shares will help you earn money even when you are sleeping.
Have a savings goal
Have a savings goal and make sure you achieve it come what may. Even if you have to sacrifice, do it. Make some sacrifices and spend less to save more. This might mean you have to leave some comforts for a while. Like eating out, participating in social activities or even buying that expensive mobile you want or that red dress which you totally look amazing in. No matter what, at the end of the day these sacrifices will be totally worth it.
Just having a goal will not help you achieve it. Working towards it continuously is what matters the most. And having the same constant goal of saving a certain amount is not enough. Have challenging goals, increase the savings amount every month or every year. As you grow older and as your salary increases your savings are supposed to go up too. Monitoring includes revising the budget and savings goal regularly (as you have inflation to consider). This helps in maintain healthy savings fund even during those unexpected events of life.
So on the occasion of World Savings Day start saving money. Gain control over your money else it will forever control you.
Happy Savings! Happy World Savings Day!