Want to save money? Want to make more of it? JAR is here to help you with 5 Sure-Shot Ways to Save Money.
It's hard to argue with the value of saving money, right? Saving money is one of the most common (and frequently repeated) financial tips. Although conserving money is critical, many of us aren't doing it. It's not enough to know that you should save money if you don't do it.
Likewise, it makes sense in this context. Doing anything regularly without knowing why you're doing it in the first instance is difficult. Saving money takes self-control and a willingness to make sacrifices. Let's be honest - you've always wanted to have a good bank balance, so why not start doing it now?
While we all know how money-saving is essential, most of us frequently neglect to do so and instead focus on just living here and now.
So, why is saving money hard for most of us?
Most of us relate our happiness to buying things with a higher value than we can afford. This can lead to a situation where we're constantly buying things or falling into debt to create and maintain a lifestyle we cannot afford.
Social media is one of the most significant contributors to this psychological factor wherein you're constantly comparing yourself with other people. When you're always creating a bias in your mind, you spend more and save less. Real earnings haven't grown in many years, and many Indians still live paycheck to paycheck. It is tough to plan for the future when you frequently spend more than you bring in.
If you genuinely want to save your money or stop spending on useless things, ask yourself this: Can I buy it twice over without burning a hole? If you can, then do it. However, be mindful of what you're purchasing and always keep a cap on monthly expenses on luxuries or things you may not need.
Also, if you really want to get started with saving your money, here's how you can do it:
5 great ways to save money
Get rid of your debts
Before you attempt to save money by sticking to a budget, clear the dues that are drowning you in debt. Don't believe us? Add in your monthly dues to check how much you spend/month on the credit card or EMIs. It's easy to save money if you no longer have to pay interest on the debt.
Set savings objectives
Saving money is easier if you have a goal in mind for what you're saving. A goal with a timeline acts as a determination to save when you know what you can achieve with that amount. Want to accumulate a deposit for your home in 2 years? Start saving towards this plan from today by chalking out the money you need to keep aside per month. Once you have the right calculations, putting that cash away each month only brings you closer to that milestone.
Spend money to save money
Since utility bills rarely decrease over time, the time to take action to weatherize your home is now. Request an energy audit from your utility provider, or hire a licensed contractor to assess your whole house's energy efficiency.
This might be as simple as caulking around windows and doors or as complex as installing new insulation, siding, or energy-star rated appliances and electronics. Over time, you may save tens of thousands of rupees on your utility bills and save more in the long run.
Open a savings account that pays interest
Keeping your savings separated from your bank account helps most of us limit the desire to borrow from our savings on occasion. A market account can help you save even more money if you have long-term ambitions.
Regulate your spending
With a budget in place, you can feel more in charge of your finances. With this tool, you'll be able to manage your spending, prioritise it, and know when you need to make adjustments. With a budget, you can lay out a clear course of action that you can easily follow and anticipate and plan for the future.
One of the biggest enemies of saving your money is impulsive purchases. You won't know it is happening, but once you identify it, everything will make sense.
Why Do We Keep Making Impulsive Purchases?
Do you ever wonder what will happen to you when you succumb to the temptation of impulsive shopping? The most common causes for consumers to make impulsive purchases are as follows:
- Our past experiences
- Deals we think are good
We shop because we enjoy it, and we buy on the spur of the moment when we're in the mood.
Emotions significantly impact what we buy. Managing our personal money is precisely what it sounds like: personal. As a result, it's not surprising that our financial behaviour changes when something personal happens.
If you're having a bad day, do you think a trip to the mall would help? It's possible that nothing of the kind has occurred. A new shirt or pair of earrings may be all that is needed. Getting something lovely to cheer oneself up isn't such a huge issue; you end up reasoning.
Making decisions based only on one's feelings is a sure way to succumb to the temptations of impulsive shopping. This is also known to sly marketers. When you see an ad, they'll play on your emotions, hoping that it will resonate with you and prompt you to make a purchase.
Take a few days to cool down after a purchase that has you giddy. Think about whether or not you'll actually utilise the item and whether or not you have the funds on hand to purchase it. A straightforward approach to evaluating a purchase is to look at it objectively.
Keep an eye out for bargains that expire in 24 hours. Don't be swayed by a deadline to make a purchase! If you can't afford it now, keep the offer in mind, put some money aside, and be prepared for it next time when a sale returns. If you’re someone in the grip of impulse buying and looking for a way to detox, then we have 14 tips to let go of impulse buying that can come in handy.
Savings come with a purpose. If you truly know why you're saving, you'll find it easier to put away some money every month.
What are the biggest advantages of savings?
Here's what you'll enjoy and benefit from saving money for the short- and long-term:
The ability to draw on an emergency fund comes in handy when faced with a difficult scenario. The ability to draw on an emergency fund in times of need is one of the primary purposes of having one. It can save you from taking high-interest loans or using your credit cards. A financial emergency might serve as a beneficial reminder of the need to save money when things go wrong.
Education costs are rising. It's becoming increasingly hard to afford college without getting into debt as student fees continue to grow. Try and open a small savings account that caters to the need for your child's education in the years to come. If you're willing to put in the time and effort, you may assure that your kids graduate from college with no student loan debt.
Saving money from a young age may go a long way toward reducing the cost of a wedding. Planning for a lavish wedding in 3 years? Then the time to save for the extravagant cost starts as soon as you start earning.
Suppose you don't want to invest in a volatile market at the moment. In that case, it is possible to save money and earn income simultaneously by opening a savings account with a high-interest rate.
We must periodically remind ourselves of the necessity of saving money. Regardless of the savings account you have, the following are some excellent reasons to keep one on hand.
In order to preserve money instead of spending it, you may not have given much thought to the importance of expensive purchases. However, there are several reasons why you would want to save money before making a large purchase.
An automobile or domestic appliances, such as an appliance washer and dryer, may be included in these purchases. However, huge purchases can be pricey. Even though we may not think about them very often, conserving money is essential when it comes to significant expenditures.
Increasing your net worth
You have to save money if you want to create riches. Develop good financial habits and improve your cash reserves by doing so. It also aids with investing, which is essential if you want to accumulate real money over the long run.
If your objective is to build wealth, you can choose from various savings accounts. Saving cash in an interest-bearing checking account is a good place to start. You may earn interest on your money this way.
Before we go
Now that you know the importance of saving money, start doing it! Take charge of your accounts, understand where you're spending a lot, and soon, you'll realize that saving money is one of the most important things to set you for life! You'll be surprised to know the independence that comes with financial freedom.