Below are the top tips to save money not just for your short-term goals but also the long-term ones:
- Tip #1 – Keep track of your expenses can track your expenses on a mobile app or document your expenses in a notepad. This can help you identify things you can eliminate to boost your savings.
- Tip #2 – Make savings a priority in your budget is important to add savings as a part of your monthly budget. It is also crucial to fix a savings rate and stick to it each month, irrespective of expenditure.
- Tip #3 – Establish your financial priorities instead of mindlessly saving or spending, fix specific short-term, mid-term, and long-term financial goals. This can offer you a roadmap and help you achieve your goals in a structured manner.
- Tip #4 – Allocate a budget The most important thing when saving money is to exercise strong willpower to not touch the money earmarked for savings. You may give up your resolve to save and utilize the funds for some unwarranted expenditure. Be wary of this. Stick to the budget and do not exceed it. Instead, make all efforts to try and save even from a tight budget.
- Tip #5 – Evaluate your spending habits constantly evaluate your shopping and spending habits to take advantage of any extra savings possible. You can consider looking at your bank account statements or credit card history for the last few months to get an idea of what, where, and how you spend. Based on your findings you can try to avoid some expenses. Make a conscious decision to set aside the amount saved. This will help to enlarge your savings kitty.
- Tip #6 – Involve your family good strategy is to involve your family members in your savings habit. You can also create a competition among your family members to see who would save the most every month.
- Tip #7 – Find ways to reduce spending to spot the things you can do to lower your expenses, such as unwanted subscriptions, not tracking your weekly and monthly expenses, and more. Being conscious of your spending habits can help you curb the need to spend.
- Tip #8 – Set savings goals Setting goals while saving money can help you save systematically. Goals can be either short-term or long-term:
Short-term goals are events that you expect to happen shortly. For example, buying a vehicle or going on a vacation. On the other hand, long-term goals are events that have a longer time horizon. Buying a house or planning for your retirement are usually considered long-term goals Knowing your goals beforehand will help you identify the right plan to invest in. For example, if you are saving for a long-term goal like your child’s wedding, you can consider investing in a plan like ICICI Pru Guaranteed Income for Tomorrow. This plan provides guaranteed* returns that can help you achieve your long-term goals. It also provides a life cover that can protect your loved ones financially in case of an unfortunate event. - Tip #9 – Open a savings account The best way to bring discipline to your savings habit is to open a separate account for your savings, apart from your regular salary or business account. Transfer the amount set aside for savings to this separate account. You can then invest in different savings instruments directly from this account.
- Tip #10 – Invest in savings plans insurance savings plans can help you save to take care of your needs and the needs of your family. They help in developing a regular saving habit and can give good returns. This keeps you financially prepared for any emergency.
- Tip #11 – Automate your savings and investments instead of automating your payments, consider automating the choice of your savings and investment plans to ensure you prioritize your future financial security without fail.
