Money has been a matter of subject in all of our lives. We focus more and more on earning money. But, the bitter truth remains that making money is no longer enough! It is of utmost importance to look for ways to save money.
Money cannot buy happiness, but it can provide security and safety for you and your family. Human beings require money to pay for the necessities of life, such as shelter, food, medical bills, and a good education.
Because money is required to obtain the goods and services you need to survive, understanding personal finance is critical. You must be responsible with your money and save enough for the future. Better spending habits and a money-saving plan reduce the amount of money you spend while increasing your chances of savings each month.
Did you know?
A single person’s estimated monthly costs are around ₹25000 in India.
The Best Ways to Save Money in Your Everyday Life
Knowing the best ways to save money in your day-to-day life will help you in the longrun. Read on to understand more about the same.
Choose a Good Savings Account
Before making a decision, you must evaluate the account-related services provided by the bank. Choosing a bank with a broad geographical presence ensures that one will have access to their account and services regardless of the location. Banks that offer services like internet banking, apps to save money, at-par cheques, electronic fund transfer services, and low balance maintenance requirements should be preferred. These are necessary to carry out the investment activity. The three critical factors for choosing a saving account are mentioned as follows:
Also Read: 10 Tips for Successful Money Management for A Profitable Business
Rate of Interest
Take a close look at high-yielding savings accounts at various banks when it comes to savings accounts. These savings accounts are the same as traditional current accounts, except for one crucial difference: they allow your money to grow at an interest rate.
Criteria for Minimum Balance
Before opening a Savings Account, check to see if the account is a zero-balance account or if there is a minimum amount of money that must be maintained. If the amount deposited in an account falls below the minimum requirement, the bank will usually charge a fine.
Service Fees or Transaction Fees
Before you open the account, carefully read the terms and conditions to see if there are any fees or charges associated with it. An administrative fee is the most common fee charged by banks when your account balance falls below a certain amount. If you're confident that you won't be able to keep the minimum balance, choose a bank that won't charge you for it.
Eliminate Intermediaries
Have you ever wondered why you find almost all online items at lesser rates than the usual rate? It is due to disintermediation. E-Commerce sites like Amazon, Flipkart, etc., offer low prices, free or low-cost delivery, and a simple return process. This reduced pricing model is a result of the removal of intermediaries. Hence, to save money, one must directly deal with the goods and services rather than the intermediary.
Save Electricity
Electricity savings not only result in environmental consciousness but also add less weight to your pocket! Adopt simple habits like turning off unnecessary lights and fans when not in use, using natural lighting, turning off the ac at adequate intervals, etc. While you help the planet in energy savings, the earth pays you back in the form of money savings!
Save Money on Vacation Expenses
When you're on vacation, the last thing you want to think about is your budget and whether or not you're blowing it. However, if you don't plan ahead of time, you could easily overspend when you could have put that money to better use. It is thus advised to refer to various sites while booking tickets to grab the best deal and allocate a budget to be used while on a trip. Another effective way of saving money while on a trip could be using public transport while travelling and prebooking the whole tour well to avoid last-minute touring expenses.
Make Monthly Budget
“How to start saving money” is the question that confuses us all. A budget is required if you want to control your spending and work toward your financial goals. A personal or household budget is a summary that compares and tracks your income and expenses over a set period, usually one month. While the term "budget" is frequently associated with limited spending, a budget does not have to be restrictive to be effective. Regular tracking will help you track and manage your budget.
How to Make a Budget?
- Determine your monthly income, choose a budgeting method, and track your progress.
- As a simple budgeting framework, use the 50/30/20 rule.
- Allow up to 50% of your income for necessities.
- Leave 30% of your income for wants.
- Set aside 20% of your income for savings and debt repayment.
Switch to Prepaid Mobile Phones
If you want to avoid unexpectedly high bills, now is the time to start using prepaid plans. Postpaid customers generally overpay the company because it is difficult to track usage until the bill arrives, and you can go over the limit. Prepaid plans allow you to stay within your upper limit while being less expensive than postpaid plans. Being a prepaid customer will enable you to save significantly on roaming costs. You may also be charged for activating an unwanted paid service that you did not request. Hence, you should switch to prepaid plans offered by various mobile networks.
Shop Online
Online shopping provides you with a variety of unique and exciting shopping experiences. It can benefit all shoppers in a variety of ways. You have more purchasing options. Today, all of the top and leading brands have their website because many people prefer to shop online. When you shop online, you don't have to worry about the delivery of large items because all online stores offer to ship, and some even do not charge for shipping.
It has been proven that online shopping is less expensive because more options, deals, and the best coupons are available. Online coupon sites have simplified finding the best value, and online shopping is often the best option for purchasing electronics or furniture. There are numerous ways to save money, including cashback offers, free shipping, newsletter discounts, sale discounts, flash sales, etc.
Easy ways to save money while shopping online are:
- Take advantage of online resources such as cash-back websites and coupon and promo code aggregators.
- Leave it in the cart and enjoy the game of waiting. The E-Commerce operator shall offer you a discount on your cart value!
- Plan your purchases around the seasons or holidays such as Black Fridays
- Sign up for emails, newsletters, and select memberships — you never know what kind of exclusive deals you'll get.
Never Get Lured to Deals
Do not ever get lured by deals offered online or offline when it does not add value to your life. Avoid overspending or unnecessary shopping while dealing with such discounts or offers. Remember that such deals are launched to grab consumer attention and boost sales. Make wise decisions and only buy items that are of importance to you. One simple trick to determine the need for an item is to imagine the item at full price and then decide whether you would still buy it or not.
Also Read: What is Request Money Fraud & How to Prevent it?
Diversify Your Investments
Limiting yourself to one source of investment is short-lived. Invest in various schemes, including Fixed Deposits, PO schemes, LICs, Mutual Funds, and so on. Choosing multiple investment options rather than just one will help you save money and contribute to your savings in the long run.
Buy Health Policies
With the ever-increasing costs of healthcare in our country and the ever-increasing prevalence of diseases, health insurance is now a requirement. Health insurance provides people with a much-needed financial cushion in the event of a medical emergency. Health risks and uncertainties are an unavoidable part of life. One cannot plan to become ill, but one can certainly plan for the financial aspect. Purchasing health insurance is one way to prepare financially for unforeseeable health risks.
Conclusion
Because money is something you will always require, you must plan ahead of time always to have enough. Sometimes a large sum of money is necessary to achieve significant goals, such as purchasing a home or paying for college. Set clear financial goals and work towards achieving them to ensure you have enough money to do these things. The sooner you begin saving money, the more likely you will never face a financial crisis. If you save and invest wisely enough, you could become financially free — that is, have enough money to live on for the rest of your life.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
