• Finance

Financial Tips For Saving Money

MAKE A MONTHLY BUDGET : Start With Your Net Monthly Income, Which Is Your Salary . If Your Income Is Not Fixed, Such As Most Self-Employed People Have, Start With An Average Of The Last Three To Six Months Income.First Step. Note Down Your Monthly Spending As Per Your Required Expenses. The Main Motto Is To Know How Much You Spend In A Month.After You Have Created Budget For 2-3 Months, You Will Come To Know That Your Expenses Can Be Divided Into Three Categories: Important, Discretionary And Entertainment. Noting Down Your Budget Is Important Not Only To Identify Important And Discretionary Spends, But Also Ensure That You Don’t Overspend,Once You’ve Noted Down Your Expenses, Save 10-15% Of Your Salary Every Month Before You Start Spending. You Can Start With Your Bank Account. This Will Help Inculcate A Saving Habit In You.

REDUCING MONTHLY BILLS :

  • Reduce Your Electricity , Mobile Bills.
  • Spend Less On Entertainment.
  • Spend Less On Online Shopping.
  • Buy A Car With Good Fuel Mileage.
  • Save Money On Food.

WRITE DOWN YOUR GOALS : Divide Your Goals Into Three Categories: Short, Medium And Long-Term Goals. List All Your Goals, Along With The Number Of Years To Achieve Them, And The Amount You Will Need To Fulfill It. Once You Have Written Your Goals, You Will Be Able To Determine How Much And For How Long You Will Need To Invest. Accordingly You Have To Take Actions On It.

INVEST INTO INVESTMENTS : Once You Have Set Your Goals, Then Think About Converting Your Savings To Investments,” Says Maalde For Short-Term Goals, You Can Opt For Recurring Deposit, Bank Accounts, Fixed Deposit Or Short-Term Debt Funds. For The Medium-Term, You Could Select Mutual Funds ,Equity Or Moneyback Policies For Medium Term. For Long Term, Equity Mutual Funds, NPS, PPF And EPF.

OPT FOR THE RIGHT INSURANCE :

  • Life Insurance Policy
There Are Plans, Which Include Endowment And Money Back Policies. These Offer Small Covers For A High Premium, And Low Rates Of Return.
  • Get A Health Insurance Policy
It’s Better To Spend ₹20,000 Per Year On A Premium Of A Health Insurance Scheme, Rather Than Paying Lakhs Of Amount On Treatment Of Hospitalization.Diseases And Accidents Can Come Anytime. You May Save A Few Money On Hospital Expenses In Case Of Emergency. Select Proper Health Insurance Policy.

MAKE MORE MONEY/SECOND INCOME : Don’t Depend Upon Only One Income. You Can Always Go For Making More Money. There Are Many Ways To Earn Extra Money.

Sneha Patil
February 21,2019
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