EARN MONEY
SAVE MONEY
DON’T TELL THE SECRET TO ANYBODY
These lines mean a lot to my family,
as many of the elder members of the family say these lines, remembering my
great-grandfather.
They fondly remember his words and
understanding of the financial requirements of the family. The definite need
for savings and leading a debt-free life are the two principles he followed
among other things in leading a disciplined life.
So we all are made to be a little
aware from our childhood days about terms like money, savings, interest,
passbooks, entries, kiddy banks, accounts, FDs, etc.
Saving means not spending a
portion of your income, in other words putting some money aside. Your money is
therefore safe and available for use at any time.
Saving money is a cornerstone of
financial well-being, providing stability, security, and opportunities for
long-term growth. Whether saving for emergencies, future expenses, or
retirement, cultivating a habit of saving is essential for achieving financial
independence and realizing your goals.
Here are the tips to help you learn
to save money through budgeting, and investing for a better financial future.
Budgeting is putting together a
budget, which is an estimate of your revenue and expected expenses for a given period.
Savings refers to the money left over after your expenses are subtracted
from your revenue, also within a specific period.
Yes, you all know this very well.
First and foremost –prepare a budget
– for an individual or for a family. Know the exact monthly income and prepare
a budget.
Know your needs clearly. Try to
keep always the expenses under the income.
Sort out or categorize expenses
with necessary, emergency, and extra or luxurious.
Keep some in the emergency fund
Invest at least in a recurring
deposit monthly if not any other big investment in stocks or mutual funds.
Maintain a diary or an Excel sheet
of the expenses every month and tally it on the last day of the month with the
income.
Think before you spend
Minimise using cabs, laundry, ironing,
phone bills, and too much entertainment.
Prioritise EMI or any other debts
over investments. Interest in EMI is greater than the returns on investments many a time. Calculate before taking a step.
Small purchases choose to pay the full amount rather than in EMI because the total EMI in a month will increase, adding pressure to meet the monthly expenses.
Buy certain things online during
shopping festivals at the best rates. You save money.
Always remember though, that you cannot earn more money- saving is earning.
Here is a gist of what financial experts say regarding budgeting:
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