It doesn’t matter how much you earn in a month as long as you are not tracking it and spending it wisely you are going to broke at the end of the month. The only way to save money is when earning more than spending. I.e. Amount you earn > amount you spend.
We earn by working day and night to get our salary at the end of the month and when we finally get it we spend it so carelessly. Why? And then we cry at the end of the month because we are left with pennies. It is not that we don’t realize it. We Do! And we promise ourselves also that from the next month we are going to save money and spend it wisely but all this promise goes into the trash once we got our salary in our account.
Here in this article, I am going to tell you some super helpful tips which you can use to save some extra cash from your salary at the same time not affecting much your current lifestyle.
1. FIRST SAVE THEN SPEND:
Mostly what people do first they spend on their expenses and then whatever they left with thy save that much. This way you will never get out of the broke life you’re living right now.
Saving is not the only purpose you should have but investing it should also be in your priority list. Future is an unforeseen, you never know how it will change your life and for that time one should be very well prepared at least with the finances because this is what we need the most to come out from the unexpected incidents of our life.
People often ask what the right age of investing is. The answer is there is no right age, start investing as soon as you start earning, THE SOONER, THE BETTER.
There are plenty of options by which you can save your money every month.
1. F.D (FIXED DEPOSIT) = FD is a term deposit service provided by the bank, in this you can fix some amount of money for a certain period of time (you are free to choose the amount and the time you want to fixed it according to the interest rate the bank is providing you). In this the interest rate is relatively higher than the usual interest rate you get from your saving account. It has a locking period so if you withdraw it before time you will not get any benefit or some benefit but not the same as promised. In this you need to invest the total money at the start of it. If you already have some significant amount of money then you can go with this option. Otherwise you can see the second point.
2. R.D (RECURRING DEPOSIT): RD is another term deposit service provided by the banks of India for the people with regular income to deposit a fixed amount every month. It is as same as the fixed deposit, the interest rate is same there is also a locking period in that, the only thing which is different is you don’t have to give the whole amount at the beginning. You can deposit it every month. For more information you can contact you bank
3. MUTAUL FUNDS: Mutual funds are also getting popular now a days because it provides high interest rate than others but it is also subject to market risk, so before going for this option first research about it from internet or you mutual fund expert or a provider only then invest your hard earn money on it.
If you want me to make a different post on how to save money via mutual funds you can comment it below or can message me via contact option.
2. Make a Budget for your expense:
Budget is highly underrated. People often think that writing down what they spend will not make any difference as anyways they are goanna spend it. Budget doesn’t only means writing down your expenses but also managing it. When your write how much you spend and on what you spend, you able to get your unnecessary purchase and that makes you not spend on it anytime in future.
How to make a budget?
I am not an economic student so I am going to explain it to you how I do it and its going very well with me.
Make two section in a piece of paper
- Planned budget
- Unplanned budget.
In the Planned budget write down all the expenses you know you have to make in a month and that are inevitable. Like
- Rent (house, appliances (fridge, oven, washing machine etc.)
- Travelling ( office)
- Subscription charges( if any)
- Savings deposit( if any)
- Your everyday tea and snacks at office
In the non-planned budget write down any extra expense you make on that month other than above. Have this blank and fill it as you procced in a month. For e.g.
- Food( order online, you had a birthday party at home which you were not aware of will happen )
- Groceries ( extra things you get other than your budget)
- Cloths and travel expenses( if you attended a wedding at that month which will eventually make spending some cash)
- Present (you purchased a gift that month for you friend, gf, boyfriend etc.)
And so on.
This will help you in getting a clear picture on how you spend in a month and teach you to manage it for future. Also if after all this you are saving some extra cash you will have an idea to invest it somewhere to give you some interest or can start a side hustle with this to earn more.
3. Shop from local flea market than branded shops:
I am not asking you to go cheap for everything but for office wear or a casual day out you can opt for a local market, they are much cheaper than these branded cloths which makes a big hole in your pocket and almost shake your budget. In office or college you need a variety of cloths. It not only changes you mood but looks good to others also. You cannot wear one branded cloths for rest of a week and local markets are not as bad, they are quite good.
With non-branded items you get a variety of cloths and you have all the latest fashion there. Some issues of quality and fitting will be there but it all doesn’t matter much when you’re getting so many cloths in the cost of one branded dress. You will have so many dresses in your closet without much affecting your budget. How cool is that!
4. Restrict yourself to go to fancy restaurants:
These restaurants with fancy names and attractive architecture charge you not only for the food but for the place and it’s not their fault because this is a business, the bill you get include taxes and restaurant service which takes a toll on your pocket. Other than going for these restaurant try some street food place which are not so fancy but delivers great quality of food with reasonable charges. You can try new restaurants as well which are just entered the market, to promote their place they gives discounts and generally charge less than already well established restaurants.
5. Make food for yourself at home (Avoid ordering online):
Occasionally going out for dinner or lunch or ordering food online is fine but making it as habit is what should be taken care of. When you order food, you are not only giving away your hard earned money but also your health because these foods of course taste good but is not good for our health,. Try to cook at least for 5 days a week. You can give yourself a rest of 2 days if you cannot cook more than 5 days.
Make this a strict rule to cook for 5 days. I know you don’t have time, you’re always running late when you got back from work you don’t have the energy to go to kitchen and cook for yourself but with a little time management you can do that, do your preparation in advance a night before for the next day so that it boost you to get up and cook food. You can add fruits in your daily meal, they need zero preparation time and it is loaded with minerals.
6. Track your travel expense:
Traveling is one thing which takes significant amount from your pocket because this is what we do every day. But it is also a thing which we can take control of.
1. Try looking for alternatives other than travelling through your own car. Travelling with your own car may give you comfort but at the same time it takes a lot from your salary. Petrol and diesel prices are on the rise and as we know that these are non-renewable recourses we should be aware of that and spend it carefully. We can try for the alternatives listed below
- You can make your car as a pool car. I mean to say you can see if any other colleague lives near you location or any other person whose office is near your office location, you all can share the expense of the petrol/diesel.
- You can take private pool cabs. these are comparatively less expensive than travelling by own car
- You can take metro or a public transport. this is possibly the cheapest way to travel plus it demands you to be active and to be on time because metros have specific time to board
7. Limit going to the bars (make a mini bar of your favorite drinks at home):
When you go to the bar and order your favorite drink you end up spending way more than its actual worth. What for? NO! Not for the drink but for the vibe of the place. It’s nice for once in a week but if you go there more than week just for the drink What you can do instead is make a mini bar in your home of your favorite drink with ice box and lemon so that every time you want to take a drink you can make it in your home with the same ingredients they use and at the same time can escape these big bills you get in a bar.
8. Groceries (Don’t buy things unnecessary):
We buy things at the start of the month and then cry on it at the end of the month because we pick things what we don’t really want. We get so influenced by the advertisement we see, that we almost believe it and buy it. I remember I have these oats packet lying on my kitchen cabinet, I bought it because I wanted as easy and healthy breakfast for myself knowing that I don’t like the taste of it I ended up buying it. I thought I will make it if it will be lying there but none of my effort really come to rescue and I ended spending my money on things I didn’t use. Make a list before going to buy groceries you can make list like that
- Kitchen (rice, spices, flour, cumin seeds etc.)
- Bathroom (floor cleaner, body wash, shampoo etc.
- Extras ( key holder, socks)
- Vegetables and fruits (broccoli, ladyfinger potatoes etc.)
- Wellness ( cream, serum, body lotion, vitamin e tablets)
I made this list just for explaining purpose you can customize it according to yourself. Shop exactly according to your list and don’t spend a sec more in any section after buying products from the list.
9. Limit your cigarettes:
“Smoking to injurious to health” I bet you have seen this everywhere (in movies, in cigarette boxes/packet etc. but still you don’t give much attention to it as you are addicted to it and other person who also smokes is looking fine to you and is alive also. As I am talking about saving money I would like to show you how much you really spend on these addiction of yours. Now let’s do a calculation
1 cigarette (decent one) cost around 15 rupees (in India)
If you consume a minimum of 5 cigarette a day that means in a day you spend = 15*5= 75 rupees a day
In a month it will be = 75*30= 2250 rupees a month
This is a calculation made on cheapest cigarette and a min of 5 cigarettes a day if you take more than that you can calculate for yourself.
You are spending this money for what? For diluting your lungs with smoke for risking your health, for decreasing your life span.
Quit smoking as soon as you can but if you are addicted to it you can try to control the times you take it in a day. This way you will less affect your lungs and your pocket both.
10. Evaluate your subscription plans/services:
We generally to make our life easy subscribe to so many services, there are subscription services for almost all of the things available in the market. For e.g. beauty products subscription, celebrity dresses subscription etc. in both of them what happens is that they gives you a box every month (pick and choose) for you to spare you from wasting your time in choosing and shopping for it. This is perfectly fine if you are really in need to it and you don’t have time for going and shopping but if you can do it by yourself and you have just subscribed because it looks tempting to you. Unsubscribe right away. They charge much more that their actual value or if they provide it n same cost still you are making a purchase from them every month.
Same is with entertainment services. In today’s market there so many entertainment services available that it is very to choose any one of them because everyone is providing a little different content from others like (Netflix and Amazon prime) these two are in the top entertainment services right now. We subscribe to it and don’t utilize it because we are so busy in our life that don’t able to watch those. If you’re really utilizing the content that’s great but if you have taken it and not at all watching it like my brother he have taken Netflix services and haven’t watched a single movie in it. It’s time to unsubscribe things you no longer use or which are of no use to you.
Evaluate your subscription services and unsubscribe which you no longer need.
11. Don’t fall for this S.A.L.E trap:
Sale is the word which is most beautiful word for most of the women. Some of them waits for this time so that they can go and shop from their favorite brand. This is all good but if you already have enough cloths or shoes and you are not in need of more. You don’t necessary have to go a buy from there because there is a sale going on. SALE comes and goes every season, so you don’t have to panic thinking that the stock will go and you’ll not able to buy. Plan your budget wisely don’t influence with this sale hoardings
TRY THIS 7 DAY RULE:
Whenever you want to buy something WAIT. Give yourself 7 days to decide before you make a purchase. Most often, you won’t feel you need it anymore. This way you will save a lot of money going waste.
Which tip you’re going to try right away do tell in the comment section below.
Thanks for reading..:)