Well! It is harder to earn money and as simple to spend it in a pinch. Saving money is a little harder as the income sources are less and expenses & inflammation can’t be beaten. Indeed, saving is like a dream these days and everyone is struggling to meet the expectations of their own and family members. But as we know, nothing is impossible if we learn to maintain a perfect balance between our expenses and savings.
But how to save money is a big question as expectations and expenses are beyond our control. This is our attempt to give a new shape to your savings with these simple and realistic strategies so that you can meet your all small and long-term savings goals.
1) Track Your Expenses
Before starting saving money, figuring out your expenses is one of the essential ways to save money. From the very first day of the month, record your all expenses – right start from your smoking to household essentials, travel expenses, etc. At the end of the month, when you have data of your all expenses, match it with your income.
We can fall into the trap of thinking spending on big things or sometimes we spend more than the income that gets us into trouble when you find your spending amount more than your income.
That’s why it is important to keep track of your day-to-day expenses so that you won’t go beyond your limit.
2) Set Saving Goals
When it comes to saving money, set a goal of how much money you can save every month. Get some certain amount of money from your income immediately when your salary gets credited to your account and transfer it in your savings account. It will help you to figure out how much you have in your hand to spend for the entire month and it will also help to restrict your extra expenses like your unnecessary shopping, outing, chilling with friends at Cafe Coffee Day, and hang out at bars.
If you have a dream of buying a house in the next two years, the best motivation to save money, you will be ready with this strategy.
3) Decide Your Priorities
When you start your month with listing a budget, keep your priorities on the top. Your income & expenses are likely to have the biggest impact on your savings. Be sure to make a budget and a list on the first day of the month and remember to keep the things on the priority that you can’t compromise with such as your Health Insurance installment, Home loan EMI or even small things like your kid’s new school bag.
Also cut out the items from the list that you think can be purchased next month but remember do not overspend. This is how you can plan your budget easily.
4) Avoid Unnecessary Shopping
Credit cards, ATMs, online shopping make shopping easier than ever before. Especially people often love to do the things that give them happiness & shopping is one of them and it is also one of the major reasons for your unnecessary expenses. Control your habit to shop the things that you don’t need and if you can’t, reduce the limitation of your credit cards and ATMs.
5) Cut Nonessentials Spendings
If you feel your expenses are so high and you’re not able to save money as much as you’d like, it’s the time to cut the nonessential expenses. Identify nonessential things that you can spend less on such as smoking, expensive coffee bars, every weekend party, etc. and cut or limit the amount of money you used to spend on these things.
Here are the ways how to limit these expenses:
- Cancel the membership and subscription of the things that you don’t use- especially if they renew automatically.
- Limit your outing and commit to doing once in a month or on some special occasions like Birthday, Anniversaries, or any other celebration.
- Cut your smoking habit and drinking habit if you’re a regular drinker.
- Find a cheap substitute with the same taste, don’t compromise with quality, for your items.
Saving money is a strategy that you need to understand before it’s too late. If you’re struggling to save money but couldn’t because of your over expenses every month, try these simple tips and we can bet these tips and tricks to save money will definitely help you if you follow them strictly.
