Wednesday, October 09, 2019 / 10:00AM / FinanceGAB / Header Image Credit: Freepik
All of us want to save money from core of our heart. But a large part fails to do so. Have you ever thought what is preventing you from reaching your financial goal? It is YOU. Saving money is harder but it is hardest to start the process. We tend to postpone our 'journey of saving' every now and then. Even you are already late on that, start it from today with our useful tips on saving money.
We know that you want to save but you are clueless on how to do that without hampering the comfort of you and your family. Here we will show you the paths. They will certainly help you to save and to build up a huge fund of your own so that you can enjoy your retirement just like you are enjoying life right now. Now take a look on the points and implement them as much as you can.
Pen Down the Expenses:
At the end of every month, your mind is occupied with that BIG question...where all the money has gone? After 30 days, it is really impossible for you chart down the calculation of whole month. Better you pen down your expenses every day without missing a single one. This may look very mundane but it is rewarding. You will get your clue from this where you are spending and how much you are spending. Now you can check your expenses from the next month.
Plan Your Budget:
When you know how much you are spending on every month; you can make your own budget by adjusting the spending of money over different things. Try to focus on necessities first not the luxury. When deciding on your budget, keep in mind the expenses that come in regular intervals like utility bills, maintenance charges and vehicle servings. Keep aside some of your savings for emergency situations.
You must be amazed to know that investments in insurance plans, tax saving investment plans are very useful instruments to save money. Cash in your hand may actually inspire you to spend imprudently. If you adopt a customized investment plan, you will not only save money but also will accumulate huge savings for a secure and financially sound future. By investing in several tax saving investments plan, you can cut down your tax burden and utilize the money to invest somewhere else.
Instruct your bank to enable auto debit facility in your salary account for payment of monthly, quarterly or annual liabilities. Apart from that open a recurring deposit account to save bit by bit. Every month when salary is credited in your account, it will be automatically distributed leaving behind only the amount we need to fulfil your family responsibilities.
Reduce Card Swipe:
Any type of card (be it debit card, credit card or membership card) hampers the process of saving tremendously. Modern living is not possible without them but we need to learn the art of spending judiciously. With credit cards in purse, we all become voracious shopper and spend our hard-earned money over silly things. You should buy that much which you can repay in full when next payment date comes. If not, then you are inviting compound interest to be levied on your spending.
Get Yourself Insured:
Insurance policy offers you dual benefits like developing fund for your loved ones and saving tax. Almost every life insurance and medical insurance plan comes with tax saving investment status and entitled for tax rebate. So these are the powerful tools to complete your financial plan because of their tax saving investment status.
If you can afford then our advice is take a home loan to invest in real estate. Although it is a financial liability but the amount you repay the principal is eligible for tax deduction under Section 80C of Income Tax Act.
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