Savings are the difference between your income and expenditure. The basic way you can save more is to increase your earnings and reduce how much you spend.
Here are some tips for saving better:
More income, fewer expenses: Try and increase your monthly income. Explore different ways you can earn some surplus. This may mean taking up part-time jobs like teaching or exploring creative interest like writing or photography. While you’re at it, find ways to cut down your expenses. Make a list of your expenses and find out the ones which you can regulate. For example, if you are eating out twice a week, cut it down to one. Small steps can go a long way in improving your savings.
1. Cut out on unwanted splurging: Are you an impulsive shopper? Are you always buying things you do not need immediately? If the answer is ‘yes’, then you will need to put an end to filling your “stuff I loved but never use” cupboard. Remember, each time you cut down on an unnecessary purchase, you increase your financial corpus towards potential savings.
2. Start small: Don’t give yourself a big goal in a short time. Start small and build up your savings as you go. Don’t cut out all your expenses in one go. It doesn’t matter if you manage to save only a meager amount each month. Every saving, irrespective of the amount, is important.
3. Save for a purpose: It is always easier to save with a motive in mind. If you are saving to buy a car or a house, or are saving for your child’s future, remember the goal when you find yourself itching to spend money.
4. Start investing: Just saving money is not enough as rising inflation may mean that you eventually lose money in the long run. Explore ways to invest your savings as per the risk you are willing to take. You can explore debt funds or bank fixed deposits if you’re looking for safer investments. On the other hand, if you are willing to take the risk, you can try equity investments through stocks. A Mutual Fund SIP is a mid-way route offering higher rewards at moderate risk.
5. Always learn to be contented: Just merely taking time to listen and look at the things you are already blessed with it is still crucial to be mindful about the things that you already have. Learn to appreciate life more and live more simply.