The habit of saving money is one of the most essential habits that people should have. Although it looks easy, not every person who earns is able to save money efficiently. Many people find it quite impossible to save money. It happens due to many reasons. For example, if one has the habit of spending excessively without any planning, it becomes tough for him to save money. People fail to understand that if they do not save enough money, it can create huge trouble for them at any point of time. Money acts as a savior. in many situations. But one needs to have proper spending habits to save money effectively. Let us talk about all those habits in this article today.
If you are a beginner and have started earning recently, you are at the perfect place. This ultimate guide will let you know how you can save money using different techniques.
Have you ever asked yourself this question? If not, then you must. Saving money comes with infinite benefits. Let us know about those benefits.
If you save money regularly, it becomes a significant amount after a while. But if you do not have a financial goal, it becomes hard to save that money. You tend to spend more and save less, without a goal. However, if you keep saving it even without a goal, it can work like magic later. Suppose, you want to buy a car after a few years. The amount you saved can be of good use as a downpayment. In addition to this, say you want to pursue a post-graduate degree, you can pay your course fee with the money you saved. Therefore, it gives you an ample amount of freedom to do whatever you want. It would be even better if you have a financial goal in mind and save for it. You can easily reach your goals using the amount you saved.
Saving money can act as a savior many times. If you face any financial emergency and have you pay a lot of money suddenly, you can use the money you saved. You will not have to worry about emergencies if you have savings with you. Be it in a bank account, in a fixed deposit, or in a mutual fund. Moreover, saving money can secure your future and keep you motivated to reach your goals soon. Financial security is quite underrated. But if you have it, it makes you unbeatable in many financial aspects. It can make you richer than an average person and can improve the quality of your life.
Many people may say that having fun is bad with savings. But what about your mental health? Mental health is something that you should never ignore. The best way to improve mental health is to have fun. Having fun makes you a jolly person and people tend to like you more. It makes you and your family happy. For example, if you go on a week-long vacation to Europe, it not only gives you fun but also makes your bond with family stronger, as you can spend more time with them. So, do not underestimate the power of fun. Save money today to have more fun in life, and for better mental health.
If you have enough money in hand, you can invest it in big purchases. For example, buying a home is considered a big purchase. You can invest it in a house, as a house’s value keeps rising, it is a great investment. You can also buy a car, a plot, a big size LED TV, a laptop and many things which require a good amount of savings. Without having a significant amount of savings, you can’t make big purchases.
When you have a good amount of savings in hand, you can put that in any purchases. The biggest advantage is that you do not have to rely on debts which often have high-interest rate and often destroys your financial health. For example, you want to buy a car. If you have a good amount of savings, then you do not have to depend on debt. The same thing goes for other purchases as well. Having savings makes you financially independent and it makes your financial health much stronger. So, save money and depend less on debts.
There are a few life events, which require you to spend a good amount of money. For example, it can be your wedding. A wedding is a costly affair and often makes a hole in your pocket. You may need a significant amount of money for that. If your savings are good, then no worries. But if you do not have enough savings with you, it can make you financially weak as you will have to take loans, etc. Therefore, having a good amount of savings is always helpful for such events.
Debts make you financially weak. These are the biggest money sucker when it comes to saving money. Debts don’t let you grow. Sometimes, you end up taking more debts to pay debts. That’s how you end up in a debt trap which is a never-ending cycle. Therefore, be less dependent on debts. Once you are free from all debts, observe how you grow financially. Nobody is as happy as a person who has no debt. In addition to taking a toll on your financial health, it makes you mentally weak as well. You constantly think about paying off your debts which increases your stress level. So, always say no to debts if possible if you want to save money and grow rich.
This is something that many people do not understand. Needs are the things without which you cannot survive. For example, rice, your gas cylinder, paying electricity bills, etc. On the other hand, wants are merely those things that are not essential, but you wish to have them for luxury or nonessential purposes. For example, buying a high-end smartphone is a want, not a need. A smartphone may be a need, but a luxury smartphone falls in the category of wants. Similarly, designer clothes, big-size LED TV, etc fall in the category of wants and not need. So, learn the difference between them and cut down your expenses on your ‘wants’. If you focus more on ‘needs’ than ‘wants’, you will be able to save a significant amount of money in the end.
All of us are buyers. But not all of us are smart buyers. The term smart buyer means someone who knows how to do shopping in a way so that he always ends up paying lesser than estimated. For example, your weekly grocery budget is say five thousand rupees. Now, there is a supermart which gives a huge discount on grocery shopping if you shop on a particular day of the week. If you find that mart and shop on that particular day, you can save quite a few hundred bucks. That’s how you can be called a smart buyer. Also, a smart buyer is the one who can cut down expenses on non-essential items and focuses more on needs than wants. So, in order to save money effectively, you should always be a smart buyer.
Nowadays, so many people especially young people have subscriptions like Netflix, Amazon Prime, Hotstar, etc. You have to pay them in thousands to renew your subscription. If you are someone who always uses Netflix and has three other subscriptions as well, it is time for you to rethink it. It is always better to cancel the subscriptions you do not use. Also, make sure to turn off the auto-renewal mode. Otherwise, your credit card will be used automatically and you will end up paying unnecessarily.
You know how costly petrol is! If you communicate to your office using your own vehicle, you end up paying a lot of money for petrol. Petrol prices are enough to dig a hole in your pocket. But think about using public transport. It is always best to use bus or metro services to your office if it is convenient. You can save money to a good extent if you travel using public transport rather than your own vehicle. It also reduces energy consumption, releases a lesser amount of carbon dioxide to the environment, and keeps air quality healthy.
We always hesitate to ask for discounts. Be it at the mall, at the theatre, the air ticket counter, and so on. Next time you visit a movie theatre or book a flight ticket, always ask if any discounts are available. You may end up paying a lesser amount if you get a discount. This is a great way to save money effectively. Moreover, often the malls and air ticketing agents give cashback offers. Avail of those offers and use that money for other purposes.
If you a regular visitor in a cafe where a cup of coffee costs you a few hundred rupees daily, it is advisable that you stop going there. It is better to make coffee at home. Unknowingly the cafe makes you spend a lot of money per month if you calculate. That is an unnecessary expense that can be avoided.
You may be having an old book which you don’t need anymore. Sell it in a book shop where they buy old books. Similarly, your old television which is replaced with a new LED TV recently can be sold easily. Sell everything that you do not need. You can earn a good amount if you sell that unnecessary stuff. Pay your bills with that amount and save money from your salary.
Always focus on buying high-quality stuff from the market as they are more reliable and durable. That good quality shirt you bought would last way longer than a low-quality one. The same thing is applied to all other things as well. You will not have to buy a new one for a long time if you buy high-quality items from the market. That’s how you can save money to a significant extent.
It is always better to check the price of that item you want to buy online, before stepping into an offline store. Quite often, online sites give huge discounts. Moreover, they have special deals on many occasions such as Holi, Diwali, Durga puja, etc and you can find great discounts on almost all products. The laptop you want to buy may have a good deal on Amazon. You may end up paying a few thousand rupees less than an offline store. In addition to this, exchange offers are quite common on sites like Amazon, Flipkart, etc where they pay you a good amount for your old stuff. Avail such features to save money to a good extent.
Nowadays, online jobs are the most preferred way to earn an additional income. Through online jobs, you can earn a good amount and pay some of your bills. This way, you can save money from your salary. For example, consider joining Chegg India as a subject matter expert. Chegg India is an excellent platform to perform your skills if you have the potential. You can earn a good amount of money at the end of the month by just answering the questions asked by students. If you have time, skills, and energy, sign up as a subject expert and start earning today.
You don’t have to make a lot of effort to save money. It only requires determination, patience, and discipline. Anyone can save money if they follow the right approach, as described above. By developing a simple yet well-disciplined strategy, you can save a good amount of money and meet your financial goals. Follow the steps which are mentioned above with a disciplined approach, and watch yourself growing richer.