Strategy

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Give yourself a strong reason to save money

27 Dec, 2016

Are you wondering if you are rich or not? Ask yourself this question: Do you have more money than you had last month? If the answer is yes, then you are rich! If the answer is no, you have to work around improving the small savings at home. Saving money is an art and it is surprising to know that there are no defined processes to save money. When it comes to saving money, not many of you are skilled.

The problem with most of them is that you are all great spenders. You seem to have a valid excuse for spending money rather than saving them. If you do not have a strong reason to save, you opt to spend unnecessarily. Saving helps in long-term wealth creation and it helps you to attain financial independence.

Piggy banks savings

The simple savings starts with the piggy bank at home. Use piggy banks for your spouse and your children and make it a habit of saving money every day.

Preparing a budget always helps

‘Preparing a budget!?’ might sound silly, but with helps you to save money when you are on tight income.  Whatever your income may be, try to keep aside 10%for your saving and the remaining for your expenses. For example, if you are earning Rs.30,000 per month, try to keep aside 3000 as your savings. Include your savings and expenses in your budget and follow it strictly.

Prepare your shopping list

With too many things displayed at shopping malls and supermarkets, you will be tempted to try new things which may not be of any use. When you step out of your house to the market, go only with the list. Preparing a shopping list will help you to cut down your monthly expenses.

Wholesale purchases might help

You can shop in bulk to avail discounts and offers. This will help you to cut down your monthly expenses to a good extent and you can also shop once in two months which will help you to save more.

Compare prices

Whether online or offline, you must compare the prices with different stores and choose the best shops that gives you the best discount. Bargain with the store to save money.

Forget your credit card

The best way for small saving at home is to shop with cash and not with the plastic money. Buying with cash helps you to control your shopping habits and you will stop buying if you do not have enough money.

Grow your money with investments and deposits

Saving money in piggy banks will not grow your money so; you must look for best investment schemes offered by banks and start depositing money for best interest rates.

Save money for special occasion

Birthdays and anniversaries occur on a fixed date and if you do not save money, it can lead to the burden. You start digging your emergency fund in order to spend for special occasions. So, monthly savings prior to the date of celebration will leave you with enough funds to manage the expenses. Opening a Recurring Deposit in banks will help you.

Special Occasions

Monthly Savings in Rupees

Yearly savings in Rupees

Wedding Anniversary

1,500

18,000

Spouse Birthday

1,500

18,000

Children Birthday

2,000

24,000

Self-Birthday

1,000

12,000

Total

6,000

72,000 + Interest

Saving money is the best way to make more money and these simple saving tips would definitely help you. There are many ways to save money but you need to find the way that would work best for you and slowly start incorporating some of these strategies to start small savings at home.

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