I agree that saving is not an easy habit to form but once you get used to it, you will definitely enjoy it and start reaping its rewards! I am stating this from my personal experience! You need to start with baby steps that take you a long way on the path of saving money. You can easily enjoy the tremendous benefits of saving money with help of smart saving!
- Future planning:
Future is the biggest reason why you need to save money! No matter how much you deny, you are going to need money for numerous reasons in future. Starting for your own higher studies, abroad trips, holidays, weddings, shopping, medical emergencies, education of your children and many more things! Starting off with saving when you don’t have all these responsibilities really helps.
If you don’t believe in future and prefer living in today (the clichéd motto of life) even then you will need money for emergencies, for they always catch you off-guard. So saving for the rainy day is always important. Emergencies like accidents, illnesses and financial crises are the uninvited guests who prefer barging in without your permission!
Early savings can save you from future debts and other such financial responsibilities that may come with credit card debts, loans or mortgage costs, etc. Saving always comes in handy.
Tips to save money:
- Make budget:
Set specified financial goals and monthly limits on all sorts of expenses. You can easily do this by calculating your average monthly expenditure on essentials like groceries, utility bills and medicines. Keep a check on exceeding expenditure if you feel you are crossing the set limits.
- Create saving account
Create a separate saving account other than your regular or current salary account. Choose from various types of accounts like high yielding accounts, online saving, money market, etc. and transfer the money that you aim to save in that account.
- Smart investments
Invest your money in some of the high yielding investment plans like insurance, ULIPs or mutual funds. A lot of insurance companies provide inexpensive and beneficial money saving policies.