INDIAN TOP BLOG DIRECTORY 2024

top Indian blogs

Sunday 13 October 2024

HOW TO MAKE SAVINGS AN ESSENTIAL PART OF YOUR LIFE

 

 


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:



 On a lighter note, here are two books I recommend for you to go through to gain a strong knowledge in handling your money :

1. FOOPS! 30 COMMON FINANCIAL MISTAKES by Manoj Arora.

2. Tightwads and Spendthrifts by Scott Rick

2 comments:

  1. Thanks for this article and for the two book recommendations at the end.

    ReplyDelete

AVERSION TOWARDS CERTAIN GENRE OF BOOKS

       Romance, classic, and poetry books are at the top of the list in popularity among readers worldwide. You are far more likely to find ...