Many of us do not have liquid cash at the time of emergency. Saving money is the wisest thing to do and requires only a few things, common sense, observation and self-restraint.
Read on to find how you can set realistic financial goals; keep a check on your spending and save your money.
IT’S TIME TO REGAIN THE CONTROL OF YOUR FINANCES
Pay your debts first
It’s important to first clear your debts, so that you pay less interest on it and save your money.
Get rid of the non-essential items
Review your regular payments that are going out of your bank account and eliminate the ones you can do without.
Set a saving goal for yourself
You might have short terms goal like buying a TV or long terms goals like buying a house or saving for retirement. Decide the amount that you need so that you can figure out what investments you can make to achieve those goals. Create a budget and stick to it.
Estimate the time frame for the goals
Set an attainable time frame for achieving those goals and make sure it’s doable.
Ditch the credit card
Leave the credit card at home so that you can monitor the cash flows out of your account and do not spend outside your limits. When you are done with the cash, you are done.
Try saving small amounts per week
Make it a point to save at least Rs500 a week in a box. It’s not a huge amount but can ultimately help you save Rs 24000 a year.
Record your expenses
Merely buy recording your expenses in a notebook; you will understand how much you spend. Take a critical look at your expenses every week
Cut down your expenses
When you will analyze your monthly expense record, you will see some expenses that you could live without. Depending on your saving goals, you will have to let go of them. For e.g. opt for a carpool instead of going alone. Switch off the lights when not in use to save on the electricity.
Re-evaluate your goals
Now that you have tracked your expenses for a month, re-assess your saving goals to understand how much you can actually save. Your time frame for achieving those goals needs to be matched accordingly.
Make a budget
Now when you have your earnings and expenses in place, make a budget for each category of things. For e.g. make a budget of Rs 5000 for movies, parties, shopping etc. It will help you in restraining your spending habits.
Keep a different savings account
Create a different account for your savings so that the money is separate. You can also earn interest on those savings.
Savings come first
Savings should be your first priority and you shouldn’t just rely on what is left in the bank at the end of the month is your savings. To start off, transfer 10% of your salary every month to a different account. Set up an automatic transfer from your account to the savings account every month.
Start your saving goals with the above suggestions and let us know how they work for you. Have any better ways of saving; please share it with our readers too.
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