1. No Credit –
If borrowed, it will also have to return with interest. That is why it should not take up until it really is needed.
2. Maintain your Monthly Accounts –
Most of the times, we do not have a correct idea about where we spent all our money. So, first step to saving money is to figure out how much you spend. Keep track of all your expenses—that means every coffee, household item, travel expense. Once you have your data, organize the numbers by categories, such as food, groceries, petrol and then total each amount. Once you have an idea of what you spend in a month, you can start organizing your monthly budget. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending.
3. Build an emergency fund –
Everyone should have an emergency fund which should not be invested anywhere and can be used at urgent situation.
The amount of this fund is not fixed as ideal amount for this fund is best known to the person who is going to use it based upon person’s situation.
4. Keep Proper Records –
However people do not feel that it is important but maintaining a proper record is very important. There can be situations which you have faced in your life due to lack of records such as, some of your household electronic was under warranty but you couldn’t utilize it as you lost the warranty card or Insurance lapse, insurance paper missing, UAN number lost, electronic appliance warranty card missing. Likewise, Medical Insurance, Vehicle Insurance, Bank, ID Proofs, PF, Income Tax, Expenses Bill, all such things should be properly maintained.
5. Save and Invest –
Only Saving the money becomes a victim of Inflation. Consider it as an example, Petrol was 33.50 in 2002 but today it is around 80. So, previously we used to get 3 liters of petrol in 100 but today it is not even 1.5 liters. This concept is called inflation of money or can relate with Time Value of money.
6. Set Savings Goals –
One of the best ways to save money is – visualizing what you are saving for. If you need motivation, set saving goals along with a timeline to make it easier to save. Want to buy a house in three years with 30 percent down payment? Now you have a goal and know what you will need to save each month to achieve your goal.
7. Save your health –
“Most people work hard and spend their health trying to achieve wealth and once they retire, they spend their wealth to get back their health.” Gym, yoga, exercises are your investment on your health which is important to save your wealth in future.
8. Leave bad habits –
Bad habits are called bad because of their bad impacts. Many people are addicted of cigarettes, tobacco, drinks which is very bad for your health and wealth. Let us consider an example, if someone stops smoking and saved 50 Rs. Daily then, it is the savings of 1500 for a month and 18000 for an year. This 18000 will become 1.2 lacs in five years invested in mutual funds, EPF, or even Fixed Deposits, which is a huge amount. Also, these 50 Rs daily saving can prevent you from harmful disease and save your health and money.
9. Pack Your Lunch –
However, this is a small tip but very genuine. Suppose, you usually have lunched every day at your workplace, which costs you let say 70rs. which might not be good for health but the same food if it is form home it will cost you 20rs and great for health. Same 50 Rs. of savings here as well. Which will be 18000 per year.
10. Buy in Bulk –
If we have a track of our budget and expenses then we would have a rough idea of the amount we consume in a week or month. So, using that data we can buy groceries in bulk which will be cheaper in cost.