Below are some tips to save money:
Do not keep too much debt
Debt diminishes your savings. While you may get lump sum funds through a loan or a credit card, the high interest rates will erode your savings in the long run. Therefore, limiting your debt is crucial to save money.
Buy genuine products
A counterfeit or low-quality product may be inexpensive but would not last you as long as the original product. You may save money in the short term but would end up spending more on repair, maintenance, or repurchase in the long term. So, choose genuine products.
Create a budget and track expenses regularly
Expenses are a part of life. Some expenses are fixed and some are variable. Tracking your monthly expenses will give you an idea of where you spend your money. Once you do this, creating a budget is a simple way to get your finances in place. This way, you can use your money efficiently, plan for financial milestones and have something for emergencies.
Prioritize paying off high-interest debts
Interest is payable on any loans that you may have availed of. The higher the interest rate, the higher is your financial outflow. It makes financial sense to pay off all debts and loans as quickly as possible to save money on the interest component. This is especially true in the case of debts which have higher interest rates attached to them.
Build an emergency fund
While emergencies can occur at any time, your regular expenses do not stop. This is why most financial planners would recommend individuals to build an emergency fund. An emergency fund should typically be in a multiple of 3 to 6 times your regular and unavoidable monthly expenses. This can help you in your time of need without having to rely on any debt.
Use credit cards wisely
Credit cards offer immense convenience and hence are a go-to choice when it comes to making payments and emergencies. However, not paying credit card dues on time can lead to multiple issues. This can be avoided by being mindful of your spending habits, using the card for emergencies or specific financial purchases, and avoiding late payment of your dues.
Smart shopping for major purchases
Occasionally, we all tend to make a major purchase. An appliance, a new vehicle or that odd piece of furniture that needs to be replaced are such things. At such times, looking for the best deals or offers available in the market to get the best price for your new purchase makes sense. Often these savings seem small but can add up substantially over time.
Make good use of any extra or unexpected income
You may earn money from various sources besides your salary/business income. Some examples include, a cash gift from a loved one, interest income from investments, bonuses earned at work, cash rewards from credit cards, a lottery and more. Instead of spending this money, it can help to prioritize saving it for your future needs.
Deactivate any auto-subscriptions or memberships
Auto-subscriptions can simplify your life, but they can also add up to your expenditure. You may often not realize the extent of your spending as they are automatically deducted from your account. It can help to go through them once and disable all subscriptions you no longer need or use.
Lower your energy costs
You can lower your electricity bill by being conscious of your usage. Turn off all electrical appliances when not in use, and switch to greener alternatives like solar energy, smart technology and more. It can also help to rely on natural light as and when you can.
Lower your cell phone bills
With several network providers in the market, you can easily browse through plans and pick something affordable. For instance, consider using family plans or couple plans to lower your cell phone bills.
Avoid spending money on outside food or entertainment purposes
Being mindful of your spending when you step out to eat or socialize is important. Many people end up losing track of their money when they go out. However, being conscious of your expenses can help you curb your spending.
Look for discounts, coupon codes, and cash backs
Looking for discounts, coupon codes, or cash backs can be a great way to reduce your expenses. Many brands offer rewards and discounts from time to time. You can plan your purchases when the seller is offering a festive discount and cut your spending considerably.
Do It Yourself
You can follow online tutorials and do-it-yourself videos to do small repairs and chores yourself instead of hiring help and reducing your monthly expenditure.
Sell anything that you no longer need
You can sell your old clothes, gadgets, shoes, watches and other items, that you no longer use. This can help you in two ways – you can earn money from the sale and you get to save money on the maintenance of some of these items.
Make saving a habit
Try to make saving a part of your life. Once it becomes a habit, you will no longer need to go out of your way to save money. You will automatically think about your financial future and the well-being of your family.
Source: www.iciciprulife.com
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