How to save money? Indeed a big and common question that worries every Individual. Therefore, we keep on looking for some simple ways to save money from your earnings.
So, have you got your monthly pay Cheque, your monthly profits or any income for that matter. Earning money is not an easy task. Once you start having an Income, the next thing you worry is how to save it to have a secure future.
Every penny counts, a little saved today shall amount to a big corpus some day. So, you can reap its benefits as and when required.
So,everybody wants to save money….Right…That’s quite obvious…earning money is one task and saving out of your earnings is another task, that too in the best possible manner.
What are Savings ? That’s how Investopedia defines it:
Savings, according to Keynesian economics, consists of the amount left over when the cost of a person’s consumer expenditure is subtracted from the amount of disposable income he earns in a given period of time.
Lets come to the point…Of course you want to get some money saving tips, that’s why you are reading this blog.
Guess what, I am here with some exclusive money saving tips just to help you out and simplify the things for you.
7 Money Saving Tips that Smart people know :
1. Check Your Earnings in Hand :
What are your total earnings in hand? This is the foremost thing you have to check for yourself, so as to decide and make other constructive plans. If you are a salaried person, you will be getting a fixed pay cheque but if you are a professional or businessman, your income shall vary according to the sales or services provided during the month.So just have a note of the following:
- Check the exact monthly Inflow of Income: Fixed or variable (as your case may be).
- Account for any additional passive income besides your regular earnings like any rental income, any freelance income, any capital gains etc.
2. Make it a habit to first Save, then Spend:
Make it a point to follow the golden rule of Saving your money i.e. Income – Savings = Expenses and not the other way round. This means learn to save first and then spend.A habit of saving now, is just like sowing a seed now and enjoying its fruits for years to come. Develop a habit of saving in yourself, it will prove beneficial for your generations to come.
As per one of the famous Warren Buffet quotes:
Someone’s sitting in the shade today because someone planted a tree long ago.
Just set a fixed amount every month, however small it may be as per your saving power. Remember, the piggy bank where you used to put your pocket money in your childhood days. Indeed! It used to be the golden period of your life.
Small portions of money saved and invested today shall build a good retirement fund for you and help you in the coming years.
Talking about saving a small amount, also go through our popular blog post: What is SIP? What are its benefits? that guides you on saving small amounts on a regular basis.
3. Set a Monthly Budget:
Set your own budget based on your own needs and expenses for the month. No two persons can have the same budget like there might be wide variation in the budgets of two close friends say Mr.A and Mr. B based on their priorities, family needs, monthly income and savings.
Your monthly budget is based upon the following factors mainly:
- Your Income
- Your Family size
- Your Family needs
- Your Saving Habits ( that you are trying to develop….)
4. Decide your Priorities:
You are a better judge when it comes to deciding your priorities. Shortlist the items that are essential and you can’t do without them. Delay buying the things that are not of much use now and their purchase can be postponed to some extent.
Simply stating, follow your budget and learn:
- Spending on Necessities not luxuries.
- Spending on needs and not fantasies.
- Spending on useful items and avoid the unnecessary ones.
Example: Buying monthly groceries is a necessity and can’t be delayed. But, you can obviously delay buying a luxurious car or the latest android phone for sometime.
You may also like:10 Financial Planning Tips to follow in Your 20s!
5. Self Control:
Now, this is the basic and the most interesting way to save your money. Control your emotions, don’t get carried away while spending money. Have a control on yourself and avoid impulsive buying. Many a times we just get attracted by discounts and alluring deals and end up with so many products in our shopping cart which we don’t even need.
Has it happened with you? At least one time…. each one of us might have experienced shedding extra money out of our pockets in the name of HEAVY DISCOUNTS and SALES…BUY ONE GET ONE FREE and see you get somewhat greedy and end up buying THREE… and GOT THREE FREE…Now,did you actually need the extra 2 things that you bought ?
Its obviously good to save some money by availing discounts, but make sure these are not too tempting to urge you to include additional things in your shopping basket.
Have a shopping list handy, don’t just go beyond it. Buy what you need and not what others want to sell to you!
A pizza…a burger …Wow! your mouth starts watering when you move across the restaurants providing them.But,what you have to do…control yourself, have these occasionally and not regularly. Result will be good both for your pocket and your health.
So, Shop smarter, eat healthier and save each and every rupee wherever you can. If you really want to enjoy fabulous discounts and offers don’t forget to checkout Best Online Shopping Sites in India
6. Analyse and cut off your Bills:
These are simple tricks to save a fairly big amount of money every month. Reduction in any kind of expenses can probably add a huge amount to your savings. You may not realise its importance in a single day or a month. Bu,t when you sit back and have a look at your reduced bills over the year, you will be surprised to see how positively these minute things affect your savings.
Just follow simple steps and Cut off your bills substantially:
- Reduce Your Electricity bills: Save Power, Save Money!
- Save on Your Food bills: Improve your eating habits, avoid food wastage.
- Reduce Your Shopping Bills:Enjoy Smart but useful shopping only.
- Save on Your Internet Bills: Choose the most economical plan that offers high speed internet and good service. Our internet usage has massively increased over the years. But, you don’t have to worry when you get plenty of cheap and feasible options.
- Reduce your Fuel bills: Petrol and diesel expenses form a major part of your monthly expenses. So, if you can keep a hold on them by opting car pooling, using public transport etc. You can save a big portion of your hard earned money.
- Avoid Excess use of Credit Cards: Limit your credit card usage. This will not only restrict your purchasing power but will keep you away from impulsive buying.
To select the best credit for yourself and get the maximum possible benefits. You can refer our popular blog post: 10 Best credit cards in India!
By adding these regular saving habits to your monthly schedule, you won’t even realise how easy it will become to achieve your financial goals.
7. Save money on Marriage/Social functions:
Now, this is one occasion where especially Indians can save from thousands to lakhs of rupees in a single go. A huge set of social functions: starting from mehndi, sangeet and so on…. A lavish wedding, followed by a grand reception! And wait! a whole lot of post marriage functions as well in some cases, is a common trend to be seen in India.
This all involves a huge set of money, all of yours and your parents past savings, just to please a handful of people in the society. What if you do it in a simple way? That might save you a lot indeed.
Last year I attended a marriage, where the decoration of the resort alone costed several lakhs of rupees. The food bill included some additional lakhs. Just imagine what would be the cost of the entire function.
Celebrate but don’t show off!
Hence, these small but important saving habits can make a huge difference in your financial life.
Track your money and further Invest it wisely! Once you learn how to save money, move ahead and plan your Investments systematically. A Good Investment plan will lead to a sound Financial portfolio that in turn will generate good returns leading to increased savings.
Its like a vicious circle EARN-SAVE-SPEND-INVEST-EARN-SAVE and so on…
I have tried to cover all the best possible money saving tips that came to my mind…Did I forget anything? Do you have any other ideas for saving money? Feel free to share the same in the comment section below!
You liked our money saving tips, don’t hesitate to share them with your family and friends. After all, they also deserve to save a little extra.