How to Save Money: Does your salary come out and nothing is left in the name of savings? You are not alone. Only 24% of people in India are financially smart. In this article, know how to save money from easy tips without changing lifestyle.
Salary saving tips: Does your salary also fly away? Nothing left in hand in the name of savings? Want to save, but don’t want to change lifestyle? If yes, you are not alone. The report of S&P Global Finalit states that only 24% of people in India are financially smart. Meaning, most people do not know how to use and save money properly. In this article, know how you can save money from salary every month in a very simple and practical way without compromising with your habits and hobbies ..
Make budget and track expenses
Creating a budget of your every month’s expenses is the first and essential step. According to your income, separate expenses such as rent, bill, ration and non-essential expenses like food, shopping. Note every expense and see where there is scope for savings. If you want, you can also track expenses with the help of some smartphone apps. Experts say, only pay the necessary expenses, control non-essential expenses. This will not change your lifestyle and will also help in saving.
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Do smart shopping
Taking some smart decisions at the time of shopping saves a lot in the expenses of the month. Do use discounts, cashback offers and coupons. Select quality products instead of expensive brands. Before online shopping, do price comparison. Take an EMI or installment plan for big expenses, so that the management of the money is easy.
Protect from extra expenses
Many times we do not notice small extra expenses. Keep an eye on things like unnecessary subscriptions like Ott, magazine. Whenever you want to eat outside, take advantage of offers or dills. To save bills like electricity, water, adopt small steps such as LED lights, close devices.
Transfer automatic for centers
Transfer a fixed amount to a savings account every month from your salary account. This gives less chance of spending money. You can also invest in Recurring Deposit (RD) or ‘Salary Saving Plan’.
Make emergency funds
Make sure to create an emergency fund. Emergency funds spend 3-6 months. Remove this fund only when needed, so that the rest of your savings are safe. This fund is sometimes used in big problems.
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Start small investments
Invest some money from your salary, so that your savings increase and work also work. Invest with small amounts in PPF, SIP or post-office schemes. In this way you will be able to save money without changing lifestyle.
Avoid useless expenses but enjoy life
Savings do not mean that you leave your hobbies, happiness or comfort. Keep a little budget for your hobby, but spend with discipline so that savings also continue.
50:30:20 Formula Formula
If you are not able to manage your money properly then adopt a 50:30:20 formula. 50% required for expenses (ration, bill, rent and others), 30% for your desires and hobbies (entertainment, shopping, eating and drinking) and 20% for savings and investment. With this formula, you can save and fulfill their hobbies without changing lifestyle.