How frustrated and helpless we feel when we really need money but we don’t have any of it. It doesn’t matter how much or how little money you earn, but spending that money wisely is a good way to save a lot of money. Moreover, if you want to invest money, then money should be saved first to invest. Many of us are not able to invest because we are unable to save money. There are two ways to save money. You can either increase your income or reduce your expenses. Increasing income may not be in your hands. But the expenses can be reduced. Let’s see how you can save money with these simple tips. And maybe even invest.
- Set aside investment before spending
Most people do the opposite. The money that is left after all the expenses, they invest that money. If you are having trouble saving money, then you invest the money as soon as the salary comes and spend what is left. Many times when there is less money in the bank, the expenses automatically come down. In the very beginning, you should invest money through recurring deposits or mutual fund SIP. In this way, Money will be invested automatically. You can spend the remaining money by investing comfortably.
- Separate your Bank accounts accordingly
As soon as your salary comes, you transfer some of that money to another bank account, which you use only for investment. Pay the expenses only from your bank account with normal expenses.
- Set your goals
If you are making any investment then mark that investment for any specific purpose like for a child’s education or as small as buying a phone. Marking your investment with any specific goal will set a restrain on you. That’s why link each of your investments with a goal.
- Do not resort to the credit facility
Although there are some benefits of using a credit card, if you are not able to control your expenses, then it is not advisable to use a credit card. If you use a credit card, there should be a lot of restraint. Otherwise, you may end up spending a lot.
- Start budgeting
Make your budget every month in advance and then follow it. Also, note down your expenses and later compare them with your budget. From the budget, you will also know which expenses can be reduced and which cannot. You will get an idea of where you are spending the most. Gradually you can reduce those extra expenses.
- Do not spend on white elephant items
If you have taken membership of the gym or any club where you do not visit or if you have subscribed to any magazine that you do not read, then immediately stop spending on such items that are not useful. It is neither good for your financial health nor your mental health. Don’t get into any competition. Spend as much as you can afford.
- Pre-plan your leisure and shopping
If you are going on an excursion, then book your plane, train or hotel in advance to save some money. Moreover, from time to time, the sale continues in the mall or on the online shopping website. You can add items in your cart and then later buy that item during a sale. In this way, you will save a lot of money.
- Do not ignore petty amounts
Many times we overlook some little expenses thinking what difference it will make. Like if used wisely, then the electricity bill can be reduced. If you have a post-paid mobile connection and your bill is very high, then you can shift to a prepaid connection.