Don’t make your finances challenging to handle! There are multiple ways to save money without even thinking about it. It sounds too good to be true, but it’s simple. Have you thought about it? Is all the money you’re spending on necessities? If not, you need to save money. Spending on what you like is never wrong, but there should always be a planned approach to avoid overspending and being left with no savings by month-end.
There are several ways to control your spending to have more money for the things you need. By making a few simple changes to your everyday routine, you can save yourself loads of money in the long run. You don’t even need fancy portfolios or money consultants to manage your money; just be smart.
1. Make a Budget and Stick to it!
Once you have your budget ready, you’ll have a clear picture of where all your money is going. Keeping track of your expenses and the percentage of your income that you want to allocate to them can help you manage your expenses better without overshooting your budget and being left with nothing by the month-end.
2. Fight the urge to splurge
There is a difference between a need and a want. You must first have a clear understanding of a need and a want in your case. The line between needing and wanting something can be a blur sometimes, with us ending up spending on things we could avoid exhausting our savings on. Next time you feel the urge to buy something, ask yourself if you need it. Most of the time, the answer will be NO. And that’s how you’ll master the key to fighting the urge to splurge.
3. Save some for a rainy day
Always keep a portion of your money aside as savings. It does not have to be much; even 5% or 10 % each month will add up to a good figure by the end of the year. This percentage may vary depending on what your expenses look like, but each individual should always put money aside that they can come back to when they need it for anything urgent or essential in the near future.
4. Invest and earn more
In times like these, where never-ending bills and limited savings haunt all of us, investing is the best way to save money for the future. Everything is so accessible and convenient that investing is a few easy clicks away in these digital times. Rather than going for a fixed deposit or a mutual fund account which has illiquid funds and fetches low returns, one good option these days is peer-to-peer lending. You get up to 10-12% p.a returns on the invested amount. Also, it is safe since it is RBI (The Reserve Bank Of India) regulated. You can have your funds invested across multiple verified borrowers for minimised risk through diversification. Rather than keeping it in a bank account and getting no or low returns, why not enjoy the benefits and earn in double digits, creating an alternate income from these very savings? Check out LenDenClub.