No matter where you are on your financial journey, sometimes all it takes is that first step in the right direction to get things moving in your favour. But, sometimes that very first step is the hardest part to choose. Also whether you recently drained your savings accounts during a financial crisis or you are just getting started with savings, Banksdirect.in has a few tips up its sleeves to help you build or rebuild your saving.
- Avoid impulsive shopping: Make a list before going for shopping, and stick to it. Avoid making any irrational decisions while making any purchases. Don’t get lured by the deals and end up buying things that are not a necessity.
- Start small, save big: Don’t postpone making investments till a substantial amount is accumulated. Start making investments even in smaller amounts. Pick a SIP based on your risk profile and make payments towards them even if one has a monthly surplus of Rs. 500. The sooner one starts, the greater the benefits of the power of compounding.
- Postpone spending unnecessarily: The best way to make sure that we don’t spend in excess is to transfer our money to savings during first few days of the month. This ensures that we know the exact amount we are left with to maintain our monthly expenses. Stick to the monthly saving routine.
- Continuously monitor and assess your savings: Monitor your budgets and make sure that savings are always at the optimal levels. Whenever there is a change in the financial situation, revise the budget. Savings should take the top priority before designing a new budget. This helps in maintaining a healthy fund to counter unnecessary debts during emergencies as well.
- Find good benefits: When you look for a new job, give preference to employers who offer good benefits, such as health insurance, life insurance, matching retirement savings plans, and transportation reimbursement. The less you have to pay for these, the more money you have to save for your rainy-day fund.