Best money saving tips are mentioned here. Most of you must be aware of the traditional economic equation which goes as follows: Consumption = Income-Savings. But only few homosapiens do realize the pivotal role played by savings to enable us have a sound and secure future. For accomplishing this purpose, you must keep your extravagant expenses in check. We often tend to ignore the little steps and initiatives that will be vital in fulfilling our dreams and aspirations tomorrow. Hence, it is of utmost importance that we take well informed decisions related to financial issues.
Managing our finances prudently should be the priority of each and every individual. Even if the term ‘Finance’ scares you, don’t worry. Widespread digitization has made our lives far less complicated today. There are numerous websites that will enable you grasp the toughest of concepts in a lucid and straightforward manner. For example, websites like The Economist, Financial Times and Bloomberg provide a powerful insight into happenings related to politics, business, finance, science and technology all across the globe.
Related Article: Best Websites For Reading Finance Related Articles
Another interactive website is Coursera, that allows you to enroll in online Certificate Courses related to finance management and even makes you put your theoretical knowledge to practical use. You can even give a read to financial magazines and journals so as to remain updated with new and productive investment avenues that will come in handy in case you are interested in making wise saving decisions.
Since the future is quite unpredictable, it makes having an emergency cushion all the more important. You never know when a health issue or some natural calamity strikes you. You need to be prepared for all this. Most of you may even have post retirement plans or may even want to save enough for the marriage and higher education of their children. Savings reduce your burden today and put you at ease. You can enjoy peace of mind. Therefore it’s essential to atleast start from somewhere.
Even if it’s a small amount, do not get panic-stricken. Afterall, every individual does not enjoy the luxury of starting their saving journey with a hefty amount. Step by Step it becomes easier for you to accumulate additional savings.
10 Best Money Saving Tips
So in this article, we will be talking about 10 best money savings tips that you can heartily adopt in your daily lives. Why waste time? Let’s begin our ‘All about Savings Expedition’.
1. Plan your budget
In order to plan your expenses in an intelligent manner, you need to prepare a monthly budget at the beginning of the new month. There is a well known accounting principle which says you must anticipate the losses but not your gains. If you live by this funda, you will be a pro at managing your money well in no time.
Atleast you will spend in your limits and not try to drift away. This will assist you in avoiding the temptation of taking away anything off the shelves in a supermarket. Let’s pledge to adopt this healthy habit right from today.
2. Take advantage of discounts and coupons
Markets are flooded today with huge banners that read ‘Upto 80% off’, ‘Flat 50% discount’, ‘0% interest’, ‘Buy 1 get 1 free’ to lure their customers. For instance, one can even find food coupons being allowed in hotels and restaurants that may allow you to enjoy free meals or other stuff at heavily discounted rates.
Make sure you grab the opportunity and take full advantage of these kinds of schemes, discounts and coupons. They are an excellent way to reduce your living expenses.
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3. Make the most of your Windfall Gains
Instead of going on a shopping spree after winning a lottery/gaining from a boom in stock markets/making profits after selling your property. Put a brake on your urges and desires. Trust me, saving today will be worth the pain. It is completely alright if you wish to buy a new dress or go out on a dinner. But at the same time, it is equally important not to go overboard with all this.
4. Use a piggy bank
Try to collect your pocket money, earnings from part time jobs, loose change in a piggy bank and then make a monthly deposit in your bank. You can open a savings account to earn a decent rate of interest.
There are certain bank schemes (you can inquire in your nearby branches) that will convert your account into a fixed deposit once a certain amount gets accumulated. This will fetch you a higher interest rate in addition to the advantage of bank security.
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5. Research well while shopping Online
Whenever you wish making online purchases, it is important to compare the price of same commodity at different websites and try to grab the best deals. This will save you a fortune. In addition to this, you will not have to suffer from the guilt of making majority purchases at extremely high rates.
6. Go for tax free investment options
It is very essential to ensure that the investment option you choose offers you enough tax benefits. Otherwise, the scope of making money over the long run becomes very limited. Taxes are bound to eat away most of your earnings. For example, investment schemes like Public Providend Fund (PPF) initiated by the Ministry of Finance in 1968, offers returns to individuals that are completely exempt from tax.
Another such scheme is the National Pension Scheme under which all you need to do is to invest a certain portion in this scheme at regular intervals over the course of your employment. After retirement, you will be receiving monthly pension which enjoys tax benefits.
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7. Save water, electricity and try to carpool
By saving water and electricity, not only are you lending a helping hand to save the planet but also shielding yourselves from huge electricity and water bills. You can also save on petrol costs by sharing a car with your friend or taking a public transport 2-3 days a week.
8. Avoid taking multiple loans
It is advisable to take a new loan only after repaying the previous one. Carrying a huge debt burden comes with interest costs. You can get away with these additional costs only by completely eliminating your debt. This will save you from getting caught in the vicious circle of a debt trap.
9. Paying off all your bills on time
In case you are in a habit of regularly forgetting about making timely payments, you can make use of ‘Reminder’ feature of your mobile phones. Set reminders to help you avoid delays. In this manner, you can save penalty money bit by bit and create an emergency fund out of it. This will work as a cushion against unforeseen events.
10. Follow a healthy lifestyle
Exercising daily and follow a healthy diet plan. Avoid consuming fried stuff and sugary drinks. This way, you can save on your medical expenses in addition to leading a fit and happy life.
So these were top 10 money saving tips for students, families, kids and young adults. Adopting the above mentioned habits not just help you save money but have numerous other positive spillovers effects.
Hope you will appreciate this article and find the best money saving tips beneficial.
Author: Manasvi Nagpal