How much money do you save monthly? Do you wish you could have saved some more? Making money is a craft but saving it is definitely an art.
Having extra money left with you at the end of every month can help you do more – you can plan a vacation, you can buy a thing which you were dreaming of and you can even invest for future income. All this sounds so nice, but in order to achieve this, you need to save money every month. Saving is not just a good habit but it secures you from the future financial crisis and can make your future much easier and comfortable.
There are many ways to save money, and here we have brought you some of the Most Simple Money Saving Tips & Tricks for 2019.
Money Saving Tips & Tricks for 2019
1. Record Your Expenses
Your first step towards saving money should be to figure out how much you spend monthly.
Keep track of all your day to day expenses—this includes your coffee, your household item, and bills. Organize the expenses by categories, such as groceries, EMIs, shopping, etc. Take help from your credit card or bank statements to do this accurately.
2. Make a Budget
Once you have an idea of what you are spending every month, it can help you organize your expenses in a better way through a budget. Make a budget using the outline of your recorded previous expense. Now try to cut down on the things which is not important to spend on. Don’t forget to measure up your expenses to your income. Plan your spending and try to limit overspending on unnecessary things. Doing this will surely help you to save more than what you saved before.
3. Eliminate Your Debt
You want to save money and have made budget too, but are you carrying a large debt? In this case, you should start with the debt itself.
Start with analysing how much you spend towards paying your debt every month. Before you start saving money, your primary goal should be to repay your loans first. Start saving money every month to repay your loan earlier and faster. Go for part payment and pre-closure once you have saved enough of money.
4. Plan on Saving Money
As you are done with records and budget, your next step towards saving should be to create a savings category within it. Your target should be to save 10 percent of your income every month. In case your expenses are high, it’s the time to cut back.
To do this, eliminate nonessentials expenses which is eating most part of your income. Cutting down on entertainment such as movies and frequent dining out can be a way to save more on your fixed monthly expenses.
5. Set a Savings Goal
Setting a goal is the most important thing which helps you to achieve it. The same is true with savings. Start making your goals for savings, don’t start with a bigger and unrealistic one. Start it with perhaps smaller goals, like saving ₹10,000 in two months. Stick to your budget with a dedication to achieve it. If you achieve this goal easily set a bit bigger goal to save more, e.g- saving ₹20,000 in two months. You can also set goals like purchasing your own car within 1 year, goals to save for children’s education and for your retirement as well.
6. Pick the Right Tool for Your Savings
The tool you opt for your savings matters a lot. If you are planning to save for short-term goals, you can use a savings account, post office MIS or RDs.
When considering bank’s savings account check carefully for these things such as -like minimum balance, fees, and interest rates. Considering these things will help you to choose the best one.
For long-term goals, you can consider a Life insurance policy and FDs.
7. Mandatory Savings for Emergencies
Once you have the budget, you have a rough idea of how much you are going to spend each month. To save more and to be prepared for emergencies, set up an auto debit instructions from your checking account to your savings account each payday.
For example- your monthly salary is 50,000 and you make a budget of ₹30,000 expenditure each month. In this case, you can set up auto debit instruction to deduct ₹10,000 per month on 1st of the month itself. This will limit your expenses and will have you to save more.
Sticking to Plan is More Important than Planning!!!
The tips and tricks mentioned above are useful only if implemented. Analysing your expenses and making a budget is a good thing. But, sticking to it and implementing it month after month is an important thing.
Anyone, who wishes to achieve better financial status can start following the above-mentioned tips anytime. There is no particular best time to start. Instead, anytime is good enough to get started with these.