Saving or putting away money for future use is always a good thing – even if it happens only occasionally, on a whim. What’s more, how much you are able to save isn’t terribly significant either. A few rupees every day, for instance, may be a drop in the ocean and may not feel worth the effort but what truly matters is the ability to stick to the habit. Nonetheless, the best practice is to save as frequently as possible, even going so far as to make it a daily ritual. If you are someone who wants to embrace thrift without having to go to great lengths for it, here are 10 simple tips to help you make savings every day.
- Track your Expenses
The first step to begin saving money is to get organised and figure out how much you spend. Record all your expenses, from your daily coffee to monthly utility bills, and everything else in between.
- Cut Back on Expenses
Once the facts & figures are in front of you, identify areas – such as dining out, fancy grocery items, movie streaming subscriptions and gym memberships you don’t use – in which to cut back expenses.
- Set Savings Goals
Setting savings goals in your mind gives you a good reason to stick to saving. Set both short-term goals – such as home renovation, or down payment for a car – and long-term goals – such as your child’s education or retirement planning – estimating how much funds you will need and how long it may take you to save that much.
- Clear your Debts
Monthly debt obligations deprive you both of income and savings. So, try and clear all your debts and pay your bills on time. If you have a credit card, pay the bill in full and on time every month.
- Automate your Bill Payments
It makes sense to automate payments for bills, including credit card and utility bills. You will save time, and timely payments will make sure you never have to pay late fees.
- Avail of Rewards Programmes
Sign up for rewards and loyalty programmes at retail stores and restaurants. Additionally, make full use of cash-back coupons and cash-back offers – if any – with your credit card and debit card.
- Declutter your Home
If you are the sort of person who habitually stashes away objects of emotional value, it makes sense to dispose of things you don’t need. The vintage chair that’s been gathering dust, the copper vase you never use – sell them. You’ll be surprised at how much cash the clutter in your home can fetch you.
- Make Lifestyle Changes
Even a few drastic lifestyle changes can help make saving a sustainable habit. Try eating out less; hand-make gifts for loved ones instead of purchasing them, and go for cheaper staycations instead of pricey vacations. Finally, do not give in to impulse; delay making purchases to avoid bad spending decisions.
- Open an Online Savings Account
Open a new online savings account and arrange for funds to be automatically transferred from your salary or current account into this account every month. Make sure the new savings account interest rate is high. This will help accelerate and multiply your savings.
- Make your Money Grow
Maximise your savings by opting for a savings account with an auto-sweep facility. With this, any excess balance above a certain threshold limit is deposited into a Fixed Deposit account, helping you earn a higher interest rate than your regular savings account interest rate.
While the habit of saving money is universally admired, only a few are able to imbibe it for good. Following the aforementioned tips is sure to help you usher in a measure of financial discipline.
Happy saving!
