The hardest thing about saving money is just getting started Follow these tips which you can follow to save money for your long and short term goals.
1. Make a record of your expense- just check how much you earn and how much you spend you have to keep a track of all your expenses record on an excel sheet or a diary whatever is easy for you. just include everything on you have spent money and categorize them to know the exact expenditure and save the extra money for your future.
2. Save for your future- you have to save with a purpose it will motivate you to spend less and save more if you save it with a purpose such as college expense, emergencies, retirement you will be motivated to save more and more.
3. Start with a small amount – people save more if they save for a short term goal if you are saving rs 500 a month is much more attainable than 6000 a year. So short term goal achievement will create a habit of saving in future and you can achieve long term goal easily.
4. Save from everything-you can save from tax refunds, work bonus inheritance, contest winnings. Make a habit of saving a small portion from every earning whether big or small.
5. Buy health policies– it is important to buy a health policy for yourself to avoid extra medical expense on your pocket. If you are not buying health policy you will indeed risking you and your family in undue pressure in case any of your family members got sick.
6. Save money on vehicle fuels– petrol and diesel prices are increasing day by day. So if you are doing carpooling or using public transport you are saving your environment and your hard earned money as well.
7. Bargain– Bargaining is a skill you should know how and when can be used. If you know how to bargain with street vendors you can have good stuff at an ideal price hence can save money for another expenses.
8. Book travel tickets in advance– you can save money on buying travel tickets prior on advance however if there is an emergency you have to book whatever price is available. Try to make pre planned vacation programmes to save money.
9. Pay bills before penalty- Paying off the electricity phone and water bills on time will save the money. if you pay these bills after due date it will cause penalty. So if you want to save money and maintain your credit score try to pay your bills on time.
10 pick the right tools for saving- there are many saving and investment accounts which are suitable for short or long term savings. Choose the right options to save more
Short term goals- savings account, FD
Long term goals – Mutual funds, NPS, long term FD