- Date : 26/07/2019
- Read: 3 mins
How do you ensure daily savings in a world which will not allow any? Read on.
It is no secret that the cost of living, in today's economy, keeps going upwards and rapidly at that. It is also a well-known fact that savings are not created overnight. They are accumulated slowly, over a period of time, by reducing extravagant expenses. A little cut back here and there ensures that you are covered for an unexpected rainy day.
Here are 6 ways in which you can incorporate daily savings plans into your everyday schedule, without having to live a hermit life.
1. Plan and Prioritise: Having a budgeted plan from the very beginning of the month allows you to be better prepared for it. If it overwhelming to plan the entire month, break it down into weekly schedules. Include everyday expenditures which cannot be minimised first, for example, commute cost, food requirements and bills (phone, electricity, internet connections, water). Once the compulsory expenses are catered for, allocate an amount for entertainment and try to stick to it. A portion of the budget has to be marked as safety money, which should be enough to cover any emergency. Follow the 50/30/20 rule of thumb. 50% of the income for necessities, 30% for miscellaneous items and 20% put directly into savings.
2. Smart savings: The go-to food options for most working people are either eating out or ordering food in. This generally turns out to be the most significant non-catered expense. There are easy methods to cook simple but tasty food, which can then be repurposed to avoid wastage. This principle can be applied to coffee and drinks also.
3. Cut expenditure: Cutting out a cable bill, unnecessary groceries or expensive gadget EMIs can incur substantial savings. The thought process of having state-of-the-art everything is not sustainable. If you have online content streaming services, having a cable tv connection along with it is an expense which can be easily scraped.
Millions of Indians are taking public transport every day. Not only is it an efficient way to cut costs, but it is also favourable for the environment.
4. Track your progress: Saving money can initially seem like a daunting prospect. However, it is a marathon, not a race. Track your progress month by month, and slowly, you will realise that our spendthrift nature stems more from conditioning than actual pertinent needs. The will to build a secure future will come naturally if you are conscientious about the nature of spending.
5. Control impulse purchases: 7 out of 10 times, window shopping, turns into real shopping, whether it is in a store or online. Delaying the concept of instant gratification is unheard of in the present social media-driven culture. Indulgence is not a sin. However, it becomes problematic when these expenses keep occurring over and over again. Sit on that impulse for a while. If it passes, you succeeded in saving a part of your money from your everyday schedule.
6. Invest smartly: There is no dearth of options when it comes to investing your money for long term wealth accumulation these days. Instead of buying a car, buy a house. Property is an asset whose market value will only go up, unlike an automobile which will incur maintenance and upgrades. Women are leaning towards discretionary investment vehicles such as a tax-free savings account or unit trust. Recurring deposits have become a trustworthy solution to provide a future home or your child’s education.
These are simple, straightforward methods to ensure that you live large while being fiscally responsible. Here are 9 items you can save money if you buy them at the right time.