Playstore Icon
Download Jar App

Top 10 Tips From Financial Experts To Help You Save Money

Team Jar
January 18, 2023
Top 10 Tips From Financial Experts To Help You Save Money

Good savings, when combined with smart investments, can upgrade the course of your money flow. To know how to save effectively, check out this article.

Financial stability- who doesn’t wish for it! A decent paying job, enough savings, an active investment portfolio and a handsome amount of cash to create your own lifestyle is a dream for many of us. 

Beyond this, financial security can also refer to your wish to retire early with enough accumulated wealth. Perhaps you might want to try out something out of your niche without having to worry about earning money. Whatever the reason, you will need money for all of this.

To put it another way, what you save is what determines how less worrisome your financial life will be. 

But saving money might not be easy for everyone. For some, it is the most difficult task that makes them compromise on things that they actually love. Well, the latter may be  true in some instances, but for a savings plan to succeed, all you need is consistency.

Saving should be an essential habit in your lifestyle rather than being an inconvenience for your dreams. 

So, how to be saving-savvy? 

Here are top 10 tips from financial advisors to rejuvenate your savings habits and get your finances on the right track! 

Financial Advice For a Better Saving Habit: 

1. Now is The Right Time to Start! 

No matter what advice or plan you follow, one thing remains consistent- the sooner, the better!

Starting early in your savings plan gives you better control of your money. You get to earn a higher rate of return, have more time to diversify your portfolio, and have a better chance of switching to a different plan in case the current one fails. 

Therefore, instead of procrastinating, get your savings plan on the go now!

2. Prioritize Your Expenditures too- Way to Sustainable Savings

If you think saving is all about suffering in the present to make your future bloom, your belief is definitely not right. Savings are anything but a stagnation of your current growth. Instead, they are the stepping stones for a better financial future. 

Talking about what to do for your current essential expenditures, the only thing to do is to prioritize them! Distinguish your necessary spending, like groceries, electricity bills, loan payments, etc., from the unnecessary ones. 

If you are going overboard with your budget, you will bear consequences in the future. Rather than squeezing your lifestyle, all you have to do is control your unnecessary expenses. For better, you can set a  maximum amount for each month that you would want to spend on the extras while making sure to set aside at least 10% of  your income for savings. 

3. You May Need- 50/15/5 Rule of Thumb For Savings

Finding it tough to set a  balance between necessary expenditure, unnecessary expenditure, and savings? Well, the 50/15/5 rule may come to the rescue! 

As per this rule of thumb for an effective savings plan, 50% or, if possible, less, part of your income must be devoted to essential spendings.  If you spend less on them, that's good. But 50% should be a nice ceiling for your necessary expenditures. 

The next 15% must be for special investments like an insurance plan, emergency funds, or an early retirement plan. Next 5% must be reserved for your short-term financial goals so you don’t have to worry about big numbers while  fulfilling your small blissful dreams! 

Thinking of the rest 30%? Investments. They are for your full-fledged active investment plans targeting your long term goals of wealth creation and money expansion.

4. Hunt Down Compounding Options!

Compound interest-the game changer in your financial strategies! 

To put things simply for you, compound interest is the fastest way to multiply your money. How? As you may know, compound interest is interest on interest- aka, the "double interest strategy." When you invest in a  plan or put your money in an account that offers compound interest, your money is able to grow faster. In a way, it earns you interest twice. 

Therefore, to tackle inflation effects and attain financial stability, you must look for plans that can fetch you the benefits of compounding!  

5. Clearly Layout Your Goal

The phrase “half the job is done once you write it down crystal clearly”? In the case of financial planning, this definitely fits the best. To be enlightened about what you are exactly doing with your money, it is important to keep track of it. 

What all rates of returns you are getting, what investment will fetch you what profits, where are you excessively spending, if you are saving enough, etc., all the doubts and questions can get cleared at once through budgeting. 

Therefore, don’t hesitate, pick up your pen (or download an app, if you are tech savvy) and maintain your budget. Once you are clear about the money that you actually have, your journey towards your financial goals would be much smoother. 

6. Automate Your Savings! 

Can’t stop yourself from spending all your money? Budgeting not helping? Goals are fading away? Well, you genuinely need a helper. 

In case your physical efforts are turning out to be of no use, switch to automatic financial tools. There are a number of online apps available where you can shift your both small as well as big investment plans. In addition, your bank can be given the charge to maintain your savings automatically. 

So, what's stopping you from attaining financial peace? 

7. Be Consistent- That's The Only Safe Zone

In case you firmly believe that investing all your money at once and then not investing or saving anything at all will help you gain financial freedom, we would like to burst the myth. 

Savings require consistency. It definitely doesn’t ask for much- a firm sense of regularity and the right place for your money to sit are all that it desires. Neither you should starve your savings account nor should you cross the brim- both ways, it's you who lose. 

The best way to accumulate a large sum of savings and financial backup is to save consistently, either in a savings account that gives a good amount of interest or in some other venture like the Jar app. 

8. Plan Out For Emergencies Differently

In case you aren’t paying attention to emergency funds and thinking that your simple savings would get you through them, stop that. 

Your savings should be bifurcated further in a way that you save for the future, invest actively and also keep aside something exclusively for emergency funds. The simplest thing to do is look for a good insurance plan. Especially health, life, and vehicle insurance should be prioritised. 

This balance is what will get you through the ups and downs of life without hampering your financial health. 

9. Actively Investing Your Money- a MUST To Do

As you may know, inflation is pretty dangerous for your money. It can decrease its value and restrict what commodities you can buy with a set amount of money. Savings in inflation is tough. So, why not tackle this hazard when you already know what needs to be done? 

To protect your money and ensure that your savings actually take you somewhere, you  have to invest it. Remember, wealth creation is necessary in today’s world. If you are a risk lover, invest in shares, equities, mutual funds, etc. In case you don’t like risk, turn to gold investments, provident funds, NPS, etc. 

But, do invest your money. Investments are the only practical way your money will stick with you and even multiply to give you a strong financial backup

10. Educate Yourself, at least, About Basic Finance

Finally, if you’ve been wondering about terms like savings, investments, digital gold, mutual funds, equities, budgeting, etc. from the above article, you must do something. 

Educate yourself about basic financial literacy. From basic terms to how you actually carry out investments and savings plans, everything determines how effective an investor you are. If you don't know basic terms, you will lose opportunities to expand your money. 

Therefore, even when the school may not have a proper financial curriculum in place, many online apps like Jar, famous books by financially successful people like Rich Dad, Poor Dad and YouTube tutorials can do your job. 

Get, set, go with your financial journey with these 10 prominent financial tips. Yes, managing money is no easy task. But with a little patience to save efficiently, letting it grow and investing at the right place can save you from big financial havoc. So, do follow  these tips and generate a saving habit- it definitely is worth it! 

Download the Jar app and accelerate your financial growth with digital gold investments. Start investing with your spare change of 10 rupees and add variety to your financial portfolio.