How to save more on less expenses: Does your salary also get exhausted before the end of the month? Know 5 smart ways to save more while spending less…
Money Saving Tips: In today’s era of inflation, most of the people complain that ‘salary comes, but by the last week of the month the hands remain empty.’ If the same is the case with you, then the problem may not only be of earning but also of the way of spending. The good thing is that it is not always necessary to earn more to save more. If you learn to manage expenses properly even after earning less, then you can save more than your expectation. Let us know 5 such practical and smart ways, which will never let your bank balance become empty and will keep increasing your savings.
First save, then spend
According to financial experts, the biggest mistake most people make is that they first settle the expenses of the month and then think of saving whatever is left. In such situations, often nothing is left. The smart way to do this is that as soon as your salary or income comes, transfer at least 20% of it directly to your other savings account or investment. After this, spend the entire month with the remaining 80% money.
’50-30-20′ formula
The ’50-30-20′ formula is considered to be the biggest hit in the world of personal finance. According to this, divide your total earnings into these three parts. Keep 50% of the needs. Keep important things like house rent, ration, electricity-water bill and children’s school fees in it. Spend 30% in pursuing your hobbies. Like going out, watching a movie, eating in a restaurant or shopping and put the remaining 20% into savings. Like- invest in fixed deposit (FD), mutual fund or emergency fund.
Stop wasteful spending with ’30-Day Rule’
Does it happen to you too that you saw a gadget, clothes or shoe on online shopping sites and immediately clicked on ‘Buy Now’? This is called ‘impulse buying’ i.e. purchasing without thinking, which is the biggest reason for spoiling the budget. The 30 day rule says that whenever you feel like buying something that is not very important, postpone it for 30 days instead of buying it immediately. Buy it only after a month if you really feel the need for it. You will find that in 80% of the cases your mind about buying it will change after a month.
Sort subscriptions and auto-debits
Nowadays, subscription for everything is available. People often take subscriptions to OTT platforms, music apps, gym membership or online courses and keep deducting money from our account every month, even if we are not using them. Check your bank statements and immediately unsubscribe from all those apps or services which you are not using in the last one month.
Put brakes on small and hidden expenses
Tea costing Rs 20 a day, food brought from outside twice a week or cabs or autos for short distances… these are expenses that seem very small, but at the end of the month they turn into thousands of rupees. The habit of eating home-cooked food and using public transport can give you great relief every month.
Disclaimer: The money saving methods, budget tips and money management formulas given in this article are only for your general information and awareness. These should not be considered as any kind of professional financial/investment advice or financial guarantee. Every person’s financial situation, needs and budget are different. Therefore, before making any major investment or taking any financial decision in mutual funds, fixed deposits (FD) or any other scheme, please consult your Certified Financial Advisor.