Money Saving Tips
Saving money is not so hard. We just need to follow a spending routine.
Once you get into the habit of being frugal, it’s possible to save money for emergencies, retirement, and other goals.
Set realistic Budget:
Setting up savings goals is done by creating the budget and living with it and reviewing the plan regularly.
Constant audit of the Budget will help you in realizing the extra spending made during the month. Follow 50-30-20 rule(Savings-Essentials-Others).
Learn to Say NO:
Sometimes it gets difficult to stop spending due to commitments accepted earlier.
Some people do not have the habit of saying NO to someone. With the digital age, all our friends and relatives will have the option to sell something for commission.
When they get the opportunity to sell something, say NO if it’s not needed for you.
Set goals
Saving money will get tough, so to maintain the savings you need to set goals that will help you stop spending.
Set realistic goals for the Short-term and Long-term based on today’s income.
This will help you to save more to reach the goal set.
Saving for the short-term
Saving for the short term should be for 6-12 months. This plan should be only based on the income generated based on the previous month’s bank statement.
Try to reward yourself with small spending once you have reached the goal. This will help you in reaching the goal in the future.
Big Spending:
Saving for Big Vacation
Saving for Big wedding.
Avoid them!!! With the option of social media, it was made mandatory to show-off. Do not do that, you don’t have to prove to anyone. Just keep the money earned
to yourself. Do not spend more than 15% of your savings on a wedding or Vacation. If planned to spend, try to earn more.
Saving for the long-term
Long-term savings goals are for the period 5-10 Years. Write down the plan in many places to remind yourself of reaching the goals.
Make sure that Short term goals are designed to reach your long term goal.
Use excess cash wisely
Got a bonus or earned money passively? Do not try to spend on Luxury.
This money should be made to work for you. So invest in yourself or invest in the Stock market to get the money multiply for you.
Unsubscribe from marketing emails
Clean up the marketing emails. This will save you time and money. 30% of you will buy if they have bought once from the marketing mail.
You may think that we will not be tempted, but sub-consciously you will be thinking of buying from the products or try be upgrade our purchased products.
Stop buying Electronics:
Many of you were buying a smartphone every annum. It’s taking about 5% of your annual salary.
You should keep a smartphone for at least 3-4 years. Buy Laptops in resale instead of buying a new one. This will at least help you save 7-10% per annum.
Stop Impulsive Purchase:
Sometime you buy a product as soon as you see the product (Unplanned purchase). Those products bought will be used by you and they will be wasted.
Every you get tempted, try to wait for 48 hours to buy. Our brain will think of the pros and cons and provide insights and help you to avoid buying unplanned products.
Don’t be afraid to negotiate
This generation is afraid of negotiation. We are afraid to speak up thinking of the seller’s anger.
It is not a sin to negotiate, try negotiation. Keep negotiating. It is a good skill to have.
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