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Your finances need a dose of savings. By infusing savings into your habits, you can save your money all too well. To know more, check out this article.
Are you a regular saver? Do you save, keeping in mind different needs, or just put all the money in one place? If you save, do you stock money or do you actually focus on growing it? Have you developed daily savings habit?
These questions must be asked to get a crystal clear view of how you are managing your finances. Savings are essential- for present and future alike. However, the myth of savings being equal to stocking money in your locker is a dangerous one.
Savings doesn't mean you have to cut short your necessities, put money tightly in your account and never look back at it. Rather, it is a flowy concept. Instead of being all stingy and compromising, you are required to analyse your budget and spending habits.
You have to set a specific spending target for basic needs, put some amount aside for leisure and emergency situations, and finally look for an account or financial instrument that can multiply your money over time.
Plus, this is to be maintained as a regular thing- a habit. Irregular phases where you suddenly save too much or not save at all are meant to be avoided. Simple consistency is all it takes to completely transform your financial health.
Savings, no doubt, are tough to maintain. Especially when we see the world around us- surging prices, an unstable economic environment and gradual loss of secured employment- we are stuck amidst trying to save and fulfill our basic needs.
But there’s nothing that can’t be done. If you are finding savings hard going, we are here to help you! You can do a bunch of things to infuse daily savings into your habits. This little lifestyle change is essential for your financially secure future.
Infuse daily saving habit in your lifestyle with these tips:
1. Segregate the essentials from non-essential expenditures
The first step is to clear the air for your new habit to settle in. For a month, analyse how much you spend. When your salary arrives, look at how much you spend on the daily essentials and how frequent your window shopping turns into a full-fledged shopping spree.
At the end of this experimental month- you will clearly know if you are cautious or a reckless spender. In the case of the former, bringing in savings habits will be easier, while the latter will require a little more effort.
Now once you know where your money actually goes, directing that flow in another direction should be the next step.
Cut down on the unnecessary expenditure and start a small savings plan. The next month when your salary arrives, put aside at least 10% of it in your savings account.
2. Set a target savings plan
The next step in your savings journey is to feed your mind with savings-positivity. That is, keep yourself motivated about cutting down on unnecessary expenditure and taking the right charge of your money.
In order to do so, you can begin by setting small financial goals that can be achieved in a short span of time. Say that there is a particular gadget that you need, like a laptop.
Now, instead of depending on someone else to buy it for you, you can instead start saving for it. The thought of earning it on your own will itself drive your zest and your savings will be more efficient.
Next time, you can switch to a bigger goal and raise your savings.
Tip: In order to actually check what’s in your budget and what’s not (this is for transactions involving large purchases), you can check the price of that item. If you can, at that point of time, buy that item at least twice, then yes, it is affordable. But if the price is beyond that, then you know that it can shake your financial stability at least for that month or year. So avoid spending on it.
3. Automate your savings plan
While a majority of us are able to figure out a decent savings plan, not all of us are able to actually put it to work. Sometimes we are too reluctant to do so or sometimes we may just find it a waste of time. These situations must be eliminated.
Therefore, whenever the inspiration to save strikes, take the help of automated savings tools. Through them, even when you do not feel the need to save, your savings will rise automatically. So, save while you sleep through automation of your savings plan.
You can even look for tools that not only save you money but also invest it directly in financial instruments that give you stable returns. Like the digital gold investment feature of the Jar app, you can grow your money with just a tap!
4. Look for cheaper alternatives
Well cutting down on your expenses is itself a major task. You may be thinking of compromising on various things that you actually love to do. But you don’t have to do that.
Instead of messing up your choices, just switch to some cheaper alternatives. Instead of that premium salon, you can sometimes try out DIY recipes. Instead of using your own car daily, you can sometimes switch to public transport or carpool with your friends on alternative days.
Also, instead of attending gym, you can switch to yoga and pilates which require minimum equipment but work even better. Next, reduce those frequent eating-outs, instead, cook your own food- better for your health as well as wealth.
Just these minor changes can do a lot for you in the long run. Gradually, you will find it much easier to save since by then, saving will become a habit of yours.
5. Put a tight leash on impulse purchases
So, how many times has your window shopping turned into reckless spending? If the answer is ‘almost every time’, you know that things are going wrong for your financial health.
To put a control over this kind of spending, the step is to manage your conscience and avoid stepping inside a store that you know will leave you broke. Also, before making a huge purchase, wait for some time. Wait at least for a week and then think about it.
If after that week, you still need it, then buy it. But if you don’t find that thing as helpful as before, then, voila! You saved your thousands.
The habit of savings was easier to swear by when we were little and had little piggy banks to store coins. As we grow and the responsibilities and external pressures set in, this once-cherished task becomes a hard-to-swallow pill.
But no worries, you can still maintain your control on your finances. With little lifestyle changes, you can boost your finances with a dose of good savings.
Download the Jar app and start your savings and investment journey with just Rs. 10. Save your chillars and invest them into digital gold. With Jar, you can work out your small savings plan and bring big changes in your financial health.