Save enough for your better future
Save for your better future
Our elders used to say that we should save more than fifty percent of our income for our future. That is not practical today due to cost of living and increasing inflation however saving up to 20-25% is wise especially while you are in private sector. The best way to do this is to make a plan and budget your expenses well within your earning and priorities. There are some time-tested ways those will keep your expenses down and savings according to your future needs.
I am sure you are not one of them who go broke by twentieth of every month due to your costly and unnecessary purchasing habits. This is not that big a problem to manage savings despite all the temptations. You can save enough money out of your income if you only try to spend with a planned budget and intelligently although it needs lot of commitment and determination. Look at your expenses, life style and way you spend, take some strict steps to cut down on some unnecessary expenditure.
Planned or unplanned
You have a fixed monthly income to meet your requirements and save out of it. Therefore, you have to make a perfect budget that will not only keep you expenses under control but unable you to save a fixed amount as well. You should understand that every one spends money according to his different needs, some of them are fixed and some keep on changing according to need. Likewise habits of spending also depend from person to person some of us are who spend with caution while some of us spend on temptations and money available in pocket or credit card. You cannot cut down on essential expenses but you certainly curve down the other type with a little bit of self-control. savee up to 40%
There are some small but sure ways; those may come in handy if you are seriously planning to keep your budget under control. You cannot stop paying your electricity bills but you can sure reduce it. Try to replace your bigger energy consuming old-fashioned bulbs with CFL and switching off unnecessary fans and lights making your habit and see the result at the time of your next electric bill. This may look good and satisfy your ego by going to your office in a car but you can save a lot of money if you can avail the services of carpool or public transport system that would make a big difference. In addition, to add to benefits, this would be lot more eco-friendly as well. Just give it a thought before making any purchase- Do you really need it.
Sale will fail you
I am sure every one goes through some very catchy posters and display boards while passing through markets or advertisements in newspapers which read- 60%+30% discount on purchase of so and so amount, Discount for three days only, Get one free with purchase of two etc. However, have you ever thought about the logic behind such offers of sales? I know that is sales strategy planned very carefully being marketing professional, I know all about these. And to make things more funny you may find a different display with –buy 2 get 2 in place of buy 2 get 1 free after three days when the sale was to end. Never get tempted by such offers, as they are not the real offers. Always keep a list ready of your essential items and buy strictly by that.
Have you tried a piggy bank?
Sounds funny? In fact, this is a good way for saving good amount at the end of a month. You only have to keep your loose coins and smaller bank notes into the piggybank while going out of you home in the morning. That makes a big amount in the end and comes in handy while you have an emergency. I once counted those coins way back and was amused to see that they counted almost three thousands plus in shape of coins worth 1, 2 and 5 rupees. Avoid having cash in hand more than your requirement.
Are you ashamed of haggling?
You are loosing a lot if you are not used to haggling as some of the shopkeepers are in habit of keeping their prices up by up to 300% in some cases. Yes we conducted a survey a few years back that disclosed that lots of markets especially in smaller towns and crowded markets have the tendency of keeping prices up by up to 300% thinking that their customers would ask for lower rates even if they kept their rates right. This is truer in case of female customers as they never buy any thing without a good bargain. And trust me this is not applicable for small shops only but bigger stores, malls, broking houses and even at banks where they allow certain discounts if you have good relations.
Dinner and lunch - skip some of them
Do you go out for dinner frequently?
Most of us do, but that has become part of our life style these days and we cannot avoid it. I am not sure about it this could be fine for once in a while but too often is not a done thing. This is one of those habits responsible for sending our budget out of control. This is not a bad habit for going out for dinner or lunch for smaller reasons is not good for your savings. You can see the difference on cutting some of them at the end of the month. Homemade food is not only good for your pocket but your health as well.
Maybe your partner is a little too expensive
Yes, that is possible because generally one of us is more expensive and loves to go out for shopping too often. Have you ever tried to take him or her in confidence and talked about it? Chances are that your partner is not aware of importance of savings for the time being. Still no result- go for a separate saving account, recurring deposit or FD without letting your partner know about it with your savings and once you have enough to show, let your partner know about it. I am sure this would be a big inspiration for your partner. While on the subject closed-ended mutual funds also are good option for saving purpose as you cannot withdraw before maturity therefore chances of savings are better.
Few more options to help you save
Avoid keeping cash more than you need it is one good way of spending lesser. Avoid going to ATM without serious need of cash and convert your saving account into fixed deposit account when your cash deposit goes up beyond a certain limit with special instruction to your bank. With many schemes, which make it automatically- you only have to instruct your bank about it. You can withdraw as well when you are in serious need of cash from such accounts without any problem through ATM also despite your balance showing not enough amounts available. You only have to insert your card again to make sure your need is real.
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