[ad_1]
On the religious occasion of Dhanteras 2022, we have compiled a few practical saving tips and saving habits that you can implement in your daily lives:
Analyse Your Expenses Extensively
The first step to saving money more effectively is to analyse your spending habits. For starters, deeply analyse your spending habits for a whole month. Categorise your spending into sections such as rent, groceries, bills, miscellaneous, leisure, etc. Once you’ve analysed your monthly spending carefully, you will be able to see patterns regarding where the most of your money is being spent. It will also help you identify whether you are overspending in any specific sectors or making any wasteful purchases every month. Analysing and understanding your spending habits is the key to making better saving habits.
Save Before You Spend
As soon as you receive money or your salary is credited to your account, you should aim to put a portion of the money into savings. After you’ve put away money into savings, then you can start by budgeting your remaining money into your monthly expenses. This will ensure that you develop a habit of regular savings every month. If you spend all of your monthly income currently, you can start by saving up 10%-20% of your income each month and then as you learn to manage your finances better and your income grows, you can also increase the percentage of monthly savings.
Review Your Monthly Subscriptions
Monthly subscription services can quickly drain your bank account, especially if you have subscripted to multiple monthly services such as Netflix, Amazon Prime, Disney + Hotstar, Spotify, and other subscriptions. While the cost of these subscriptions may not seem that much individually, their cost combined can quickly go up, especially as these expenses are charged monthly. So take a careful look at all the active subscriptions on your credit card, debit card, etc, and unsubscribe from any services that you do not use regularly.
Avoid Buying Items On Credit Or EMI
While buying expensive gadgets or products through credit or through EMI loans may seem attractive, the interest rates that you have to pay on the loans end up increasing the cost of your purchase. Moreover, you have to keep repaying loans for many months or years, which can leave you with less money for your monthly expenses. So avoid buying any products or services on credit or EMI loans unless absolutely necessary.
Add Any Bonus Money To Savings
If you receive a nice cash bonus at work, or you get a large cash gift from a close friend or family member, you should add that extra money to your savings. This will help you significantly boost your savings rate. Although you may be tempted to buy something with this extra cash, add the funds to your savings unless you have any immediate or urgent expenses.
Plan To Invest Your Savings
Just saving money is not enough to grow your wealth. If you wish to beat inflation and raise the value of your savings, the best option is to start investing money in different avenues. There are multiple different investment avenues that you can consider such as stocks, mutual funds, real estate, debt funds, gold, bonds, liquid funds, etc. Over a long period, your savings and investments will help you grow wealth immensely and provide your financial security.
[ad_2]
Image and article originally from www.bqprime.com. Read the original article here.