06 Jun 2021: Super easy tips and strategies to save money every month
"Saving money for a rainy day" is a phrase we often hear. However, our short-term happiness may get the better of us, and we end up spending every penny in hand. Saving money is a healthy habit that should be inculcated from an early age. However, it is never too late to get started. These simple strategies will help you save money every month.
Expenses: Note down and categorize your expenses
The first step to any savings plan is to keep track of all your expenses. Keep a check of every bill, however small the expense is, to get an idea of your monthly expenses. Next, categorize them as household, mortgage, additional expenses, etc. In this way, you will be able to understand the unnecessary expenses that you have incurred, which could have been avoided.
Budget: Set a budget in the beginning of the month
Based on the data from above, plan a workable budget for the upcoming month. This budget should work in all your daily estimates and even occasional ones like car service, insurance payment, etc. Once this is set, make sure to spend within the budget without giving in to other avoidable expenses. Aim for your savings to be at least 10-15% of your income.
Savings account: Open a separate savings account apart from the salary account
When your savings are in your salary account itself, you may be tempted to use it when circumstances arise. To avoid this, open a separate saving account wherein you can transfer a certain amount at the beginning of every month and use the remaining for your expenses. You can then directly use this account to invest in different savings schemes.
Goals: Set short-term and long-term saving goals
The best way to save money is by setting goals. Your short-term goals can be small, achievable ones like a vacation, shopping, etc., that can give you a psychological boost once you achieve them. Long-term goals may be ones such as a down payment on a home, retirement, etc. Setting aside a certain sum to achieve these goals will give your savings a purpose.
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