Around 90% of people across the globe get ready to save their money before retirement but, very few think about how to save money from their first salary.
Of course, we all are humans one day we will need money for some emergency situations & at that time asking money from friends or getting a loan will be easy but returning will make a huge burden in it.
So, before it fall like a burden on your head, let us save money from today with these 6- legitimate ways whether you are a student, teacher, parents, retired or from any other profession.
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| How to save MoneyRecord your Monthly Budget
Creating a budget list from your day-to-day life can save you from spending tones of cash on the go. Lets see how-
Start calculating your expenses such as the cup of coffee/tea that you take on the office-break or your child’s pocket money. Every single rupee should be included in your diary.
Reason: Once the month completed you will be getting your monthly expenditure report which shows how much money you spent on the month.
There are many applications for calculating your monthly expenses & also you can entry your record on the same app that are available on the app-stores just for free.
Find the best Alternative
In many cases we find ourselves to be in hurry to buy products which are branded but, we don’t even want to know whether there is any alternative in the market.
For an easy explanation let us have a look on the top rice brands :
Suppose, every month you & your best friend get the same salary of Rs.15,000. One day you both went to buy basmati rice & you picked Shrilalmahal Basmati Rich of 10Kg which cost you around Rs.3000 on the other side your friend picked India Gate Basmati Rich which cost him approximately Rs. 1690 of 10Kg but, remember both are basmati rice of different brands but both are Indian.
Now by calculating :
- Rice Cost:
- Saved :
- Rice Cost:
From the above calculation, we found how much can we save from just switching a product brand.
Cut Unnecessary Expenses
Finding products of low cost always helps you to save money but how? Well, we maximum number of people want to own a car/motorcycle so that we can travel more easily & enjoy our limitless freedom. Wait! How will it cost to travel 70Km both in a transport vehicle & in your personal vehicle?
- Mileage : 12Km/L
- Your travel distance: 45 Km
- Fuel Estimate: 4L
- Fuel Cost: Rs.85/L
Your 45Km Distance travel cost you:
On the Other hand,
- Mileage : 3Km/L
- Destination: 45Km
- Estimate Fuel: 15L
- Fuel Cost: Rs.85/L
The bus contractor picks 40 passengers of the same destination. So, he divides the Total Travel costs by 40.
Total Travel Cost:. So, per passenger, it cost around
By travelling on your Personal Vehicle it cost you around Rs.340 & on the other hand on Public Vehicle it charges you Rs.30. Here, if you travel in the public vehicle you will save Rs.310
Also, by travelling on those public vehicle you will be following & supporting the anti-pollution act in India.
By not only travelling, you can also cut your expenses if you take restaurant food every other week, taking fast-food every week or such any other activities.
Purchase a Piggy Bank
We know keeping few coins will not be making Lakhs of Rupees in it. But, we should buy a piggy bank because we all buy products with money. Sometimes the shopkeeper return us few coins, also someday coins just fall from our pockets/wallets. So, instead of throwing those coins we can put it into our piggy banks which one day will make us happy in emergency case.
Select your best Tool
If you’re saving for short-term goals, think about using these FDIC-insured deposit accounts:
- Savings account
- Certificate of deposit (CD), which locks in your money for a hard and fast period of your time at a rate that’s typically above savings accounts
- For long-term goals consider:
FDIC-insured individual retirement accounts (IRAs), which are tax-efficient savings accounts
Securities, like stocks or mutual funds. These investment products are available through investment accounts with a broker-dealer. Remember that securities aren’t insured by the FDIC, aren’t deposits or other obligations of a bank, and aren’t guaranteed by a bank. they’re subject to investment risks, including the possible loss of your principal.
Select your Future Saving Goals
One of the simplest ways to save lots of money is to line a goal. Start by thinking of what you would possibly want to save lots of for—perhaps you’re getting married, planning a vacation or saving for retirement. Then find out what proportion money you’ll need and the way long it’d take you to save lots of it.
Here are some samples of short- and long-term goals:
- Emergency fund (3–9 months of living expenses, just in case)
- Down payment, if any
Long-term (4+ years)
- Down payment on a home or a
- remodeling project
- Your child’s education
If you’re saving for retirement or your child’s education, consider putting that cash into an investment account like an IRA or 529 plan. While investments accompany risks and may lose money, they also create the chance for growth when the market grows, and will be appropriate if you propose for an occasion far beforehand . See step No. 6 for more details.
Think about your priorities
After your expenses and income, your goals are likely to possess the most important impact on how you allocate your savings. make certain to recollect long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs.
Make your savings work Automatically
Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much, and where to transfer money or even split your direct deposit so a portion of every paycheck goes directly into your savings account.
Lastly, here are all the #8-tips of saving your money from getting ruined. All this #8-tips is personally used by myself, so I think it will help you to save yours.