Do you want to study MBA? Are you looking to make your wedding grand? Does a foreign holiday trip entice you? Whatever you do in life, you require money. You need it for high-quality higher education, an exotic holiday trip, pleasurable pursuits, purchasing luxurious things, meeting medical expenses and at last but not the least to secure your future. Therefore, it is imperative to save money right from the word go. At the same time, it is true that you cannot do service throughout your whole life, therefore going short on funds and cashless is natural.
Here are some beneficial tips that will help you save and manage your money in a better way. So read the article and have fun.
Start smartly and in a planned way
Everything in life should be done in a planned way and savings is no exception. Every dollar counts. To kick start your savings and investment, you need to budget, prioritize, manage and bring a change in your lifestyle if you are extravagant. It’s all about habits.
- Budget – Keep a track of your monthly expenses as this will help you to save more money and avoid wastage. Keep an account of each every tea, newspaper, fuel, groceries and every snack you buy on a monthly basis. For tracking your expenditures, it is best to use one payment process.
- Prioritize- It is important to consider savings and investment your first priority in life. Set savings and investment goals like saving money for an exotic vacation or a car. You can get more money saving tips on the internet.
- Manage – Wealth management is all about paying out debts and investing in the right schemes having high rate of interest.
- Lifestyle – Stop becoming extravagant and reduce irrelevant expenditures to have a secured future. Think rationally and be positive.
Creating a savings account is a very good option
To get a financial protection and a smooth retirement life, opening a savings account can help you to have a happy and peaceful life. Saving gurus suggest that during your service tenure, you should save minimum of 10% of your annual income in order to retire hassle free. It will also assist your money to grow through compound interest. It can also act as a major source of asset for buying a new house. Long-term savings goals are extremely beneficial as it can be utilized after retirement or for sponsoring child’s higher education both in India and abroad.
- For long-term savings, investing in FDIC-insured IRAs and mutual funds are good options to consider. You can go for securities like stocks with the help of a broker. FDIC-insured IRAs are good for retirement savings.
- For short-term savings, regular savings account, CD, and bank money market savings account are lucrative options for employed persons. Bank money market savings account comes with variable rate of interest and will help your wealth to grow.
Invest on a small house
If you really want to make your future secured then buy a smaller house for living. Very often you will find that many people are fond of living in larger houses even if they have a small family, and/or more expensive than they can really afford. In addition, many people decide to take advantage on the growing assets or stake in their home by selling and shifting to something large.
For a smaller house you need a smaller mortgage loan, therefore you can pay it sooner and bring down your property taxes and utility bills.
Don’t pay interest on credit cards
We all love credit cards, I am sure you love it too. It helps us to go on a shopping spree, or eat in a fine restaurant. But it is is obvious that if you become a defaulter or fail to pay in full, you have to pay a high interest to repay the loan. This can leave your monthly budget to go haywire. You can also ask for a decrease in the interest rate on your credit cards from the companies when it comes to home equity loans. However, it is best to get rid of your credit card if you tend to spend more.
Pay off your life insurance on a yearly basis
Insurance companies ask for more charges if you pay the premium on a monthly, quarterly or semi-annual basis. Only paying the premium annually will help you to get exemption from the additional charges asked by the insurance companies. Also pay your premium on time as there are hefty penalties demanded by the company if you pay the premium late. Purchasing term life insurance can also help you to save money.
Pay auto insurance premium semi-annually
Auto insurance premium needs to be paid in a quarterly and semi-annual payment basis or twice a year. If you pay it quarterly then it will cost you more.
Purchase online when it comes to saving money
Whether it is buying electronics, cosmetics, garments, consumer durables, go online. Visit Amazon, Flipkart, Snapdeal and other well-known e-commerce sites. You can also get seasonal discounts and freebies from different sites while buying online. Many sites also offer cash back facility on buying products. You can also avoid push selling from salesmen which happens in brick-and-mortar stores. Most often due to which, you end up buying a product that you do not wanted to buy initially. Get more money saving tips online by reading financial blogs and articles. It will help you to cushion your future and have a great one to enjoy with your toddlers.
If you prefer to buy offline, then negotiating and haggling can also work in your favor. According to a research conducted by by Consumer Reports,“90% of people who tried to get deals on furniture, electronics and appliances succeeded in saving their money to a large extent through discounts.
Conclusion
Savings is important both for employed people and business persons to have a secured future. So everyone should make it a habit. In times of necessity, the saved money can come to their rescue and give them some consolation. Saved money can be utilized in a variety of purposes like child’s education, buying a home or a nice car.
Have you started your savings yet? If yes, which of the above-mentioned tips you liked the most? Lets us know through your comments.