Have you just started earning? Or maybe confused with the money you have? You’ve been to the right place. Here I am going to tell you 15 ways of saving money and some ways of investing it. Also it isn’t necessary that you may earn, you can even start with whatever you have. Maybe with the pocket money you receive because developing the habit of saving right from the very beginning will bring so much of benefits in the future.
Let me elaborate this with the help of an example. Suppose your dad gave you 500 rupees to spend on something. Now, if that “something” is for 300 rupees then you’re still left with 200. That’s where you can start! Keep that aside, you need to cherish each and every penny you have!! coz it’s the fact that you’re saving something and obviously it isn’t going into a waste. It’s all about how you start even a small start will work.
Handling Your Expenses
Handling your expenses is the major head here. Managing your expenses and spending your money right has a major role to play , In short you need to cut down your spending an unnecessary things and try to prioritize for things that are basic for life and you probably can’t do without them.
Let me illustrate you further, suppose you have 10,000 rupees with you to spend in a month, now your major goal must be to save some part of this fixed money and keep this aside. Prioritizing here means giving priority to things that you really need over those which can probably be avoided. Maybe 5 to 6 packets of chips can wait than a bottle of shampoo. This is what I am trying to say right now! Obviously you can sacrifice those packet of chips and not the bottle. You got me right, money saving has some sacrifices too!
Also it’s a good habit to write down your expenses, this will probably help you to track for the unnecessary one’s and minimizing them. You can even try making ledgers for “EXPENSES FOR THE MONTH” if you feel like. Adding a small note there of why did you made that purchase will surely help you to rethink about some of the items and yupp help you to save more!
Loans & Credit Cards
I completely agree that loans and those plastic cards can provide you some kind of financial stability. However think twice or even thrice before going for it! In my opinion loans and credit cards are beneficial only in that case when you have the ability to pay back. Also paying EMI’s on time will demand a lot of fund and that too every month. So you have to be extremely sure about paying your EMI’s and returning the principal amount.
Here we need to plan, coz we aim to save more ,prepare a proper budget and then investment too. I suggest you not to take any unnecessary loan. There’s no point in ruining your CIBIL score. In case you don’t know CIBIL SCORE is one of the most important factors of getting credit. Basically it stands for consumer’s credit score, it shows a three digit no which is based on your credit conditions and your behavior towards it. It ranges between 300 to 900, the closer it gets to 900 the high amount of chance it is to get your credit application approved. So decide wisely!
Planning & Bonus Money
If you are able to raise money beyond your profession then that’s your bonus money. Maybe through freelancing or some other work can be your bonus money! I know you want to enjoy your perks which is absolutely fine coz you have worked hard for it and obviously paid your extra time and effort to it but don’t forget that we need to save! So plan things accordingly and then execute everything. Planning effectively can help you save a lot while enjoying for things you may want. Also proper planning makes you clear about your budget, your money spending and accordingly you can save and manage your expenses.
Again I’ll advice to decide wisely. Try to write down everything and jot things up. By everything I mean your spending’s, your earnings, how much money you’re left with, amount you decide to save and the leisure spending money too!
Creating and Reviewing your Budget
If I define the term “BUDGETING” technically, it means financially planning for acquiring resources over a specific period of time. In other words a well planned budget will let you have a control over your expenses. This is so because you will already be clear from the very beginning on how much to spend and how much to save!
You can use excel sheet to make a clear & classic budget or maybe you can find budget templates online. To calculate you need to first pen down your total set of incomes. Your total income maybe calculated as the total of your salary + income from any other valid source.
Now calculate your total expenses and subtract them from your income. Some of your expenses might be electricity bill, telephone bill etc. If you’re left any money then hooray!! we’ll be able to save some.
You can even use 50/20/ 30 rule for budgeting. According to this rule you need to use 50% of the left out money for basic needs and other necessities. Rest 20% for saving and other 30% on yourself!
Now it’s completely up to you how much you save and how much you’re willing to spend! That’s why decision making is really important and a crucial aspect here. The better your budget the more clarity and thus more saving and a proper use of money.
Building your Savings Fund
There’s never a “PERFECT” time to build your savings fund. It’s a now or never situation. Remember it’s an emergency fund. You got to use this only in the case of emergencies or urgent needs, and that’s the purpose of this fund. Shop smartly, be a smart consumer, make use of coupons and discounts .Avoid spending unnecessarily on things you aren’t in urgent need of! Remember those days of quarantine when we all used to spend so much online! We need to avoid that. Try to change your approach or mindset towards saving. And that’s how slowly you’ll be able to save more.
Now the question is how to make best use of these savings!? No worries I have got you sorted! Maybe a savings account in any of the banks of your choice can help. Savings account is basically a bank account offered by retail banks where you can deposit your money with the amount of interest in return. It’s a safe place to hold your money and also you’ll earn interest in return.
Investing Decisions
Investing decision is basically spending/investing your money into those projects or assets that yield a high return. It’s a crucial decision be it a company or an individual. That’s why proper planning is required before investing. Investing can a long term or a short term decision, so it’s completely up to you and the amount of money you have!
Let me give you more clarity on this!
I assume that you have already taken a note of your financial conditions and stability. Also there is some kind of risk involved in an investment. Smart decisions plus being active and awareness can help avoiding it!
Some of the good investing decisions you can consider are:
- Stocks, bonds or mutual funds
- Investment in Assets (property)
- Cryptocurrencies
- Insurance
**********************************************************************************************************************
I hope you found what you were looking for! Let me know in the comments section below what you think about this post. Will love to hear from you all!
Also don’t forget to follow us on Instagram: @thecoffeefolks_
PS: I post there more often, so make sure to hit that follow button and turn on the notifications for posts, stories, live and ig Tv videos!.
Checkout our previous posts here:
https://thecoffeefolks.in/index.php/2020/10/16/15-productive-things-to-do-in-quarantine/
https://thecoffeefolks.in/index.php/2020/09/07/sunday-brunch-outfit-ideas-ultimate-guide/
Photo by Josh Appel on Unsplash