7 essential tips to save money daily!

Imagine waking up to low debt and high savings. Lives where you can actually buy things you want on your own terms without facing the brunt of impulsive purchases made in the past. That’s what living a life ‘king-size’ is all about. Saving money is like gifting something useful to your future self. Let’s see how these small but effective measures can make pleasant life-altering changes in your life.

  • PLAN out your shopping needs before spending your money. Having a rough plan to figure out how you aim to manage your expenses will ultimately help you in the long run. Instead of setting a fixed target, decide on a range in which you want your expenses to fall in. This will help you in getting better clarity and control over your finances.
  • Hold yourself ACCOUNTABLE. It’s understandable if you cannot jot down all the expenses that you made in the past week, especially the petty expenses. But, it is still possible to have a fair idea of what you are looking at for the rest of the month. If need be, re-plan your expenses for the next week to accommodate for any extra expenses that you have made in the past week. This might seem too rigorous in the beginning but you will reap hefty benefits out of it once you get in the flow. In case you have done extra well with your expenses in the past week, then give yourself a pat on the back, you deserve it!
  • INVEST: It’s simple. Earn More. Spend More. Save More.Think yourself. What would you prefer more? Your money lying idle in your wallet or it being put into a suitable plan that helps you earn generous returns? The latter, right? Start investing in share market, mutual funds or whichever plan you find suitable. Initially, you can start with a short-term investment option. Try out short-term fixed deposit plans that start with a minimum term of 7 days. The rate of interest varies for different banks and time periods. This way you earn some interest on money that was otherwise sitting idle and is also easily recoverable. Take wise and informed decisions. Make more money and ultimately live your life like a boss.

  • ALIGN saving money with another goal. Stay healthy and save money. Less junk food and more of home-cooked food. Go Green to save money. Stitch cloth bags using old clothes. Take a pool service or public transportation whenever viable. Want to stop waking up late? Put aside ₹100 whenever you wake up late. This way, you can get rid of a habit you don’t like in the fear of cutting more from your daily allowance. Attach a purpose with the money that you save. For example, save ₹5000 for a special occasion. Now, you are conscious of the fact that if you don’t save, you will have to cut back on your shopping for an important event.

 

  • Keep some money aside EVERYDAY. However small the amount is. Decide an amount that is feasible to you and stick to it. Don’t use this money apart from unavoidable exigencies. Treat this like your fixed deposit in your own personal bank. It is advisable to have surplus funds that can sustain you for at least 6-12 months in case of adversaries or untoward incidents.
  • Cut out on HIDDEN EXPENSES. Making delayed payments for tax, electricity, insurance premiums invite fines and you may have to forego any rebates that were being offered. Deferring regular and required maintenance on home appliances might make way to added expenses on replacing them in the future. Share your Netflix account with four people to distribute the cost. Try buying groceries or household items in bulk quantities or from wholesale outlets. You might get an extra discount when buying in bulk. This not only saves you extra money but also reduces the hassle of going to the market every now and then.
  • Shop for YOURSELF and not for the next-door neighbours you are trying to impress. It is one thing to have a healthy impression in front of strangers and a completely different thing to hijack your bank account in the process. Focus more on your ‘NEEDS’ than your ‘WANTS. Ask yourselves these questions before making a big purchase decision.How much does it cost? Can you afford it? Is it important to you? Are you even going to use it multiple times or if it is a single-use purchase, will it provide you with a pleasant memory? Make your purchase if you find a satisfactory answer to these questions.

Saving money doesn’t mean missing out on wonderful moments of life. It just ensures that when life hits us hard, we are better prepared. Savings is not only about how much amount we save. It is more about keeping unnecessary expenses in control and securing the future. Just be responsible. It’s your hard-earned money after all.

Team Investoday