TOP 10 MONEY SAVING TIPS

Every one of us wants to be rich. But to become rich what is the most important point? Most of us think that people can get richer only by doing business. It is not possible to be rich by a salary or normal income. but this is not always true.  If you see  in your locality of society,   there are many people who are very rich but a salaried person. it takes time for everybody to become rich but there must be a financial discipline to be followed rigorously and that is the only key to become rich or save a lot of money.

Practically, most of us do have only one source of income that is salary or a regular income and this is very risky. Therefore, it is very important to save the money from that salary component. and this is only possible by a proper saving  discipline.  It is not always possible for most of us to increase the income everyday or every month but we can manage the salary component in such a way that it will give us a good amount of savings and make us rich in the long-term.

We're going to discuss  top 10 money saving tips.

1. Make a savings plan:

Thought of any savings is to make a saving plan on a budget. A budget is nothing but  an estimate depending on your future goals and adhere to that estimated plan. This will help you to priorities your expenditure and find a balance between spending and saving across a whole year.It is better to make savings plan on a monthly basis and review it weekly.

2. Keep a record of your expenses:

Every one of us must have a record of our expenses.We all know that it is very much to control the expenses and  generally by the end of the month we find that expenses have gone very high with respect to  what we have thought. Therefore keeping a record or tracking your expenses will help you to understand the components where higher expenses have been done. make a simple note on a Notepad or a diary or an excel sheet,  Jot down your expense components like house rent, electricity bills, credit card bills, travelling expenses, medical's, EMI,  grocery and every possible thing. it is very important to make a savings plan first and then spend the money on expenses.If you’re spending more than you earn, ask yourself what you could cut out or cut back.

3. Cut your expenses wherever possible:

This is the most important and critical part  as it is very difficult to control the expenses. Some of the useful points that I am using are mentioned below.

1. control your buying impulse-Try to avoid buying things which are not necessary  and is the control on your buying impulse. do not spend impulsively it will take a lot from your pocket.

2. Stop the habit of non planned expenses-  spending a big amount on any expensive item you should Plan it.  if you do not plan it you may have to use your credit card or borrow some money, which in turn, will take extra money from your pocket.

3. Plan your outings- you must plan your outing as per your budget. Most of the time an unplanned trip to dinner costs more than the planned one  and you can save a lot of money.

4. remove auto-subscription & membership-In this internet era, we all are  very much captured by the subscriptions of  web series, movie downloading sites, online movie sites and different entertainment packages. but if you notice properly these costs a lot. try to go for a free subscription or free downloading platform. believe me it will save a lot of money.

5. Stop comparing with other people’s lifestyle- Everybody has a different Lifestyle and it depends on the choice and taste of that person.  it is a foolish thought to compare your lifestyle with somebody else's as you don't know the other person's earnings, expenditures, priorities, video taste, thought process. Many times to follow others' lifestyles we spent a lot of money which actually means nothing.  therefore it is advisable to maintain a simple living high thinking attitude for a better financially stable future.

6. Use credit cards wisely-Rate of interest on credit card bills is very very high than the others.  and in no time the credit card bill I will take all of your savings if it is not used wisely. Try to use the credit card as little as possible Om.

7. Use low budget phone & WiFi connection-Nowadays there are many options to have low budget with optimized facility on connectivity and Wi-Fi connections. therefore you should check compare and then select the optimized prepaid or postpaid mobile  and Wi-Fi connectivity.  at the end of the year this will help you to generate a lot of savings.

4. Set goals for your savings - Long term & short term:-

Long and short term savings plan will help you to generate a good amount of savings.Short term means good for 1 or 2 years and long term will be considered till 5 to 10 years. you can keep inside your monthly savings for short terms and long terms like your dream home children's education marriage and your retirement planning. 

5. Use auto saving option:

This is one of the best options to create savings. you can instruct your bank For saving options. In this way every month a certain amount of money will be saved and after a long time you can see that a good amount of money has been collected.

6. Negotiate & bargain during buying:

Whenever you're buying anything it is better to negotiate and bargain. at least you can save some amount of money on every purchase.

7. Try to repair things by yourself first:

For any household repair work it is our tendency to ask for the service people and obviously they will ask some charges against the service they provide. But at least we should  give it a try. In major cases very small amounts of repairs service people charge very high which can be done by ourselves.  It is always recommended to keep some small repair tools like a drill machine, screw driver, hammer, nails etc at home. These cost less but are very useful and can save a lot of money.

8.  Use household energy efficiently:

It is always recommended for household energy like electricity, gas, water etc efficiently to avoid extra expenses. We do not realize how much money can be saved in proper utilization of these  resources.

9. Make financial plan from the beginning of your career:

Most of us do not even think to save or manage our money from the starting of her career. but there are many financial platforms which offer a compounding rate of interest and that will generate a big amount of money over a long span of time. moreover create a habit in you to save money and financial planning. Experts say that if you plan & invest early, you can be rich and financially independent at a very young age.

10. Change your budget as per your income (50-30-20) & (40-20-40):

The project of financial planning must be revised depending on the income and situation.  At the beginning of your career you can use the 50-30-20 principle of financial planning. it is very simple and explained below:

50-30-20 rule says, 

50% of his or her income can be spent on the needs like food, Transportation, clothes,  house rents,  Bills of electricity, water, gas, phone, internet etc.

30%  can be spent on wants  vacation, expensive clothes & consumer electronics etc.

20%  must be saved & invested

Later when income increases this 50-30-20 rule can be converted to 40-20-40

Financial Planning

Now  you have an ample amount of ideas and tips on how to save money and how to become rich. Remember, discipline is very much important and patience is a second thing.  you need to give a good amount of time to your money to grow.

It really doesn’t matter how much money you make—what matters is how you spend and save the money you make