We all want to save money, but mostly many times we can not save that kind of amount that is in our head. For example, at the beginning of every month if I decide to save 3000 rs. and I am not working towards it, I quite end up saving 1k or less than that. So what do I do to save more money or save at least that amount that I have decided at the beginning?
Here are these 5 habits with which you will be able to save more money every month.
1. Plan, plan, and plan: So when we talk about saving more money, it includes money management, and the first step of money management is planning. You know how much you need for your basic essential things like rent and water bill etc, You know how much your wifi and Netflix can charge. These are the known expenses. So when your salary comes, deduct these expenses from that amount. Whatever is remaining deduct the amount that you want to save this month, Like If your salary is 45K and your bills are somewhere around 20k. and you want to save 10K. deduct 10K from the remaining amount. and then keep the remaining 15K for miscellaneous expenses or unknown expenses. In this way, you will be having a limit to spend your money also you will be able to save the desired amount. Usually, we spend first and then try to save the remaining amount, and sometimes nothing is remaining. So To save more we need proper planning.
2. Proper investment: With proper planning, we must think about how we can invest our money in the right place? For ex. Investing in SIP’s, investing in gold, investing in bonds, investing in shares, there are many options available. With proper guidance and knowledge, we can invest our money in the right place, at the right time and that will benefit us in the future. Automating your investments can be very helpful, in that way you will be having control over your spendings.
3. Track your spendings: In this way, you will come to know very shocking facts about your own spending which sometimes are unnecessary. By tracking your own spendings for a month you will be able to know where you had spent unnecessary, or which expense could have waited for another month. By making a proper log of your spendings you will be able to track them and then you can make a budget for the next month, keeping your unnecessary spendings in mind. In this way, you will be able to save more money next month.
4. Invest in the quality: Many times we purchase things thinking, It won’t cost much, and looking at the tempting low price we certainly ignore the quality. After a few days or months, that thing doesn’t work well, and again we have to purchase it. To avoid this we need to invest in quality, in this way we may spend a large amount at once but it will save our many small spendings in the future. So always invest in quality, which will save you more money.
5. Follow 30 days rule: So if you want to buy something big, or want to make a large purchase, wait for 30 days. That means wait for a month, and then reanalyze if you still find that purchase needful. If yes then go for it, but if no then it will save your big amount. For instance: You got motivated by watching your favorite celebrity working out at home, and you want to buy a treadmill, You applied this rule and waited for another month. After a month of gymming or home workout, you realized you can do without it, so this 30 days rule saved your good 30-40K rupees. Isn’t that amazing?
So these are the 5 basic and easy habits with which you can seriously increase your savings and you will be tension free when it comes to Money Management.