We have all heard the common phrase ‘A penny saved is a penny earned’. It is always easier to save the money that you already have, as money once spent is gone forever. The toughest part about savings is getting started. What’s important is that you need to develop a realistic strategy for savings, which will help you build a corpus for both your short- and long-term goals.
Hence, we bring to you, 3 key ways through which you can save more:
Practice Budgeting & Keep a Check on Your Spends
The pandemic has taught us that emergencies can arrive anytime! And the going gets tough especially if the emergency is a financial one. Hence, saving your money is vital. This begins with keeping a check on your expenses after your monthly income is received, post which you can divide your money. Try a ‘spending freeze’.
“Do not save what is left after spending. Spend what is left after saving.”
Pro Tip: Separate your wants from needs.
Once you know where your savings are going, you know where you need to cut down on your expenses. Managing your budget, expenses and savings has become way easier with online finance management and income management applications.
Compare & Shop Smart
Online shopping has changed the way people shop. Just with a click of a button, you have the product ordered. But there’s more to this. Most e-commerce platforms offer periodic sales and discount offers which can help you save big while you shop, especially during the festive season. Moreover, browsers now letting you compare online sites for the best price are making this task easier.
Leverage the Magic of Compounding
In his well-known book ‘Think and Grow Rich’, Napoleon Hill says, ‘Make your money work so hard for you; so that you do not have to work for it.’ This holds true due to the power of compounding. Investing your income early on lets your money grow without you having to take much effort to earn it. And, with time, the income grows through the power of compounding.
Starting to save early prevents you from taking any risky bet. After all, your savings will find a hard time catching up with your dreams and requirements if your investment journey begins late. This is why saving smart and saving early is essential. And, online financial services platforms these days, are making this possible for you. With savings plans and investment plans available at a click of a button, savings is not just easy but very quick.
To Sum Up
With financial planning, starting early may be a choice but it is what fuels your investments and savings. Morgan Housel, in his book, ‘The Psychology of Money’, offers similar lessons of wealth in which he quotes,’
“The highest form of wealth is the ability to wake up every morning and say, “I can do whatever I want today.” If there’s a common denominator in happiness – a universal fuel for joy – it’s that people want to control their lives. The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.”
This reiterates the idea of an early start to financial planning and investment in order to save big for tomorrow. Long-term savings is what you need to set your path right towards a financially stable future, despite what life has in store for you.