Sometimes the hardest thing about saving money is to just get started. No matter where you are on your financial journey, you need to know that it’s possible for anyone to turn their financial life around. The first step towards saving money is to figure out how much you spend. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals.
Banksdirect.in has created few ways to stay committed to your savings plan:
These plans will be life-changing, but they can make quite a difference over time if you’re able to implement them one by one. Take a look at how to stay focused on your money goals;
- Save Before You Spend: If you prioritize spending, you will save poorly for your future- the easiest way to do this is to choose automated savings and investment options. You should also automate your payments towards rent, utilities, Credit Cards, insurance premiums etc. so that they’re paid in a time fashion without your intervention.
- Set Yourself Some Money Goals: In order to be motivated to save, you need to set yourself some goals. While long-term goals such as saving for retirement could mean investing in PPF and Mutual Funds, short-term goals such as buying a car could mean investing in Debt Mutual Funds or Recurring Deposits.
- Make A Monthly Budget: Once your goals are in place, work towards laying out a budget. Then, calculate what you can save and invest each month in line with your financial goals. Don’t forget to cut back on unnecessary expenditure is the single best way to build wealth.
- Think Of Opportunity Costs: Every time you buy, consider how you could have used the money alternatively to save up. This doesn’t mean that you deprive yourself of luxuries altogether but weigh your benefits against the cost every time you make a transaction.
- Be Careful About Your Debts: Try to avoid unnecessary expenditure and stick to your budget- this will help you stay out of debt. Do not take loans to pay back previous loans, as it could land you in a debt spiral. Always aim to clear your Credit Card dues and EMIs dues in full and on time.