Do you feel overwhelmed for not saving enough money? While some of your co-workers find it easy to save the money and it is a tough ride on your part? Why is saving soo important?
When you can enjoy the money your are earning why is there a need to save the money, it is because of the market strategies we find alot of things attractive with no use of them. For example you are walking down the street and just saw a cute cup, would you think of all the unused cups you already have in your kitchen. No! You want that cup because it is attractive, for Instance the price of this cup is ₹350 and just like that you buy random stuff for a month of around same amount, you are almost spending ₹10, 500 of things which are not even relevant enough to use.
So here are the ways by which you can save the money spend and convert it into money invested -
1.Budget - Create a budget of all the important things which are not just important but mandatory to buy, for variables mark 10% extra of your income. If the budget you have set is 50% of your income and giving leverage of 10% for variables, you can save upto 40% in that case.
- Savings account - Manually set a limit for how much money you will save before the salary comes.
Make your mindset for saving a amount of money already then spend it on essentials.
2.Emergency Fund - Life is uncertain and at any point of time you may need money, just save a part of your income into this emergency fund to use it when you want to, if this fund doesn't get used in a month put the money into savings account, now this is your new saving.
- Spending vs Investing - You need to understand whether you are spending the money which means you can live without a particular thing but you want it just because you like it, spending for the wants rather then needs can eat up all your savings. Evaluate whether you need a particular thing or not
- A 21day Rule - when you are spending your money on a large expense write down, what is it and how much it cost, how will this things ease your life what is the benefit, if after 21 days you still feel the urge to buy , then spend your money on that, otherwise save.
-
Creation of a Pension Goal - While working and spending we do not realise that one day our body would not allow us to earn the money we can earn today, before that time comes save for your pension fund and make goals every month and achieve them.
-
Invest in quality - Spending on Quality products is actually an investment, the quality products will last a longer time and can make you save more because you do not need to buy the same product again and again.
-
Consider Equity - You should always be aware of the market ups and downs, research and then invest in the financial programs carefully
For more such information on the various ways to save your money, invest it in different channels of productivity and basically how to do it, how does a bank help your with this, you must visit Tricky Finance where you will get daily updates on all the financial information you must be wondering about. It is a personal financial blog which will help you in investing smartly.
