If you are a fresher and have just started earning, probably you would want to save some minor part of your savings and invest it into things that give better results. But for some reason, you are not able to. This is because, finally, you have got the financial freedom to spend money freely. You end up spending so much that probably by the end of the month, you are broke and wait for your next month’s pay check. If you are staying on rent, then it really becomes difficult for you to save money because half of the chunk goes in rent and other half includes your grocery, bills, traveling expense etc. So here are a few money saving tips for the beginners:
- Keep aside 10% of the salary: In the initial stage when you have just started earning, it is really difficult to even save 10% from your salary. But by keeping it aside a small amount in lock period of 6 months, you will earn interest on the minimal amount from your salary. Isn’t this just amazing? Now by saving just a minor chunk from your salary, you can earn profit on that. This habit will slowly help you to keep aside 20% of the salary because it is extremely motivating when you earn extra.
- Something to save for: Best way to save money is to start thinking – for what you want to save ? When you ask the question to yourself, you might get a couple of answers:
- Emergency funds
- Buying a new house
- Child’s education
According to your need for money in different categories, you should start saving accordingly.
3. Cut down on unnecessary expenses: Now i know that you don’t have money to spend unnecessarily but you are still wasting alot of money in your day to day habits which you can cut down on. For example: you only travel in ola/uber by road or your vehicle. If suppose your vehicle is not available, you use ola and uber. Now assume you have to travel a very short distance and yet you choose to go by cab rather than bus/autorickshaw, you end up spending Rs.30 more, which makes it Rs.210 at the end of one week and Rs.900 per month. Here you can save Rs.900 by switching to public transport.
4. Decide your priorities: You need to be very clear on your priorities. Because when you think about saving you need to take into consideration, long term goals rather than short term. Prioritize your goals and start investing accordingly.
5. Make a budget: I know it is difficult to stick to the monthly budget, but in order to save, one must always stick to the budget. By doing this, you will come to know about your expenses, income and how much are you exactly saving. Once you start making the budget, initially you will find out that your expenses are more than your income. This will be the hitting point which will give a clear vision of how and why you should start saving.
To sum it up, take the smart steps and start saving rather than spending recklessly and unnecessarily. This little savings will help you in the future.
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