Saving money is a priority for every individual, however, it can be a challenge for most if not planned smartly. According to a survey, the preliminary estimate of household savings is placed at 8.2% of the GDP. If you are looking to save money, here are listed some of the smarter ways to do that right.
- Make a monthly budget for every month: First things first, keep a close eye on your paycheck. With each salary credit, make a strict budget of how much you need for your monthly expenses. Usually, countless expenses happen at the beginning of the month. To ensure optimum planning, you need to make a budget where all your utilities are tracked, and the expenses of that. Budgeting can only be successful when you keep aside a percentage as savings, another lump sum for investments, and the rest for your expenses.
- Do not live paycheck to paycheck: Many people make the mistake of living paycheck to paycheck, and that is when saving money can get tough. If you want to avoid that, you need to keep a close eye on your expenses and cut back on things that are unnecessary. You also need to ensure that you relieve your debt and outstanding loans to free yourself from additional liabilities.
- Set up monthly SIPs directly from your bank account: Another great way of making monthly investments is to have standing instructions for your bank account. At the beginning of the month, have monthly SIPs set up for different mutual funds, and you will have an investment to fall back on later.
- Keep aside a monthly income for fixed deposits: Many salaried individuals prefer to set up monthly fixed or recurring deposits in the bank. Having multiple FDs with different maturity dates allow you the financial freedom to fall back on, eliminating the need of relying on credit cards for emergencies.
- Have an expense tracker for monthly expenditure: Another great way of managing your money is having an expense tracker in place. There are various mobile applications that help you streamline and track your day-to-day spendings.
- Have different kinds of investments: With platforms such as Finserv MARKETS you can invest and keep track of a wide range of investment options. You can easily invest in mutual funds, shares and stocks, deposits, and also different kinds of pension schemes. With an online platform, the monitoring of investments becomes easy and transparent.
The Bottom Line
Saving is easy if you have a concrete financial goal in mind. Chalking out those goals can help you understand how much you need to save and will also motivate you to stick with your monthly savings plan. Preserving funds each month not only prepares you for the future but also ensures that you are financially independent.