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5 Easy Ways to Save Money in 2019

IndianMoney.com Research Team | Posted On Thursday, January 03,2019, 06:41 PM

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5 Easy Ways to Save Money in 2019

 

 

We save money because we can’t predict the future. Saving helps us stay financially prepped for any emergency that might arise in our daily life. There could be a number of things for which you must set money aside.  

Saving money doesn’t come naturally and is a habit that must be cultivated over the years. This will provide a financial cushion and you can finance the different necessities like buying a vehicle, a down payment for the purchase of a new apartment, a vacation or emergency medical expenses for your family. It’s important to save money to avoid falling into debt while paying for basic necessities.

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SEE ALSO: What Is A Good Credit Score?

How to save money in India?

Plan your budget by taking into account, needs and not wants. Think of a realistic budget and categorize your money carefully. Your budget must include every rupee earned and spent. You can save effectively by setting aside 20% of your salary.

You must follow the thumb rule: You can save money from your salary each month by following the 50 – 30 – 20 rule. Firstly divide your monthly income into three parts. The first 50% of your salary must go towards necessities like home rent, home loan EMIs, and groceries and so on. The next 30% of your income must go towards your wants. Devote a budget for the things that you need to buy.

The remaining salary i.e. 20% must go towards your savings. Have an emergency fund and put savings in this account.

It is very important to diversify savings. Creating an emergency fund will help you stay prepared for financial emergencies. It is important to buy a life insurance plan like a term life insurance plan. You can also save tax.

Investing in riskier assets like equity mutual funds or stocks raises money in very little time and helps gain profits.  Do note that these are risky investments and you can lose money as well.

SEE ALSO: How To Invest In Stock Market?

General Savings Tips:

Budgeting allows you to create a spending plan for your money and ensures you always have enough money for the things you need and the things that are important. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt. Given below are some general saving tips:

  • Set short term and long term financial goals
  • Set your monthly budget
  • Negotiate prices when shopping
  • Cut unnecessary expenses
  • Pay your premiums and dues on time
  • Make a list before going for shopping and stick to it
  • Avoid splurging on fast foods
  • Install CFL or LED lights to save electricity
  • Install solar panels
  • Buy good appliances that save electricity
  • Use credit cards only in emergencies
  • Cancel unnecessary memberships

It is important to develop a budget using your net income. Without money put away in savings or investments, any emergency or funding becomes impossible. It might also lead to borrowing from lenders at high rates and this leads you to the debt trap. Below discussed are some of the expenses that you can curb to save money:

  • Banking, Credit, and Debt Savings Tips: Avail a cashback credit card instead of using normal credit card. Today, many banks offer credit cards that give 10% cashback on transactions. Make payments through the online wallets to get cashback on transactions. Make sure to pay credit card dues and EMIs on time to avoid paying late fees or additional interest.
  • Entertainment Savings Tips: Instead of going to multiplexes each weekend, you can take subscription of online channels like Hotstar or Amazon Prime to enjoy the latest movie.
  • Food Savings Tips: Make a list of the grocery items you really need. Avoid fine dining. If you are a working professional, carrying lunch boxes will help you save money on a daily basis.
  • Transportation Savings Tips: if you travel to work daily and use your own vehicle then think twice. You can either carpool or share your vehicle with others, to save on costs. People who do not have their own vehicle use the existing public transport system instead of renting cars or looking for carpool. This not only helps save money, but also reduces the traffic. You can also opt to use a bicycle if the distance from your home to office is close.

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