Not many women might agree that finance is a crucial issue that they deal with in day to day life. Even though every woman faces it, none of them talk or discuss it with each other. They find it really hard to admit it to others that they face issues financially. Half of the stress in the daily life comes from money matters.
The hardest thing about saving money is getting started. Our spending list is never ending and our wants are unlimited. Getting started is the main thing. You have to make up your mind and stay determined to continue saving the money. Another thing you need to learn in today’s world is automation.
Here are few tips that can inspire you to save more and help you in planning all your expense and might also help in making your savings grow:
Safe First! Spend Later! (SFSL) Method Is Must
The first thing you should do is to learn how to invest your money into different categories in such a way so that it can yield better in future. Meet an expert and learn methods suitable for your individual situation. And the most important thing is to realize that saving is not an option but a necessity.
Learn To Save 25% Of What You Earn Every Month
Many people follow this strategy when it comes to money. There are various ways that people use to save money but they should try to ensure that they save at least 25% of the total money they earn. It might be very helpful for them in future and a very good guideline that ensures that the future is stress-free.
Treat Saving As An Essential Expense
Pay yourself first. Yes, you have to treat saving as an essential expense and a necessity. Every time you receive your monthly paycheck you need to collect or deposit a particular amount as a saving, just like you consider paying your bills. For this, you have to practice discipline and deposit the money into your bank account. And then forget about it until the time you actually need it.
Ask Your HR To Split Up Your Paycheck
Set up two different accounts in bank or online so that your pay is automatically split before it even reaches you. It is not easy but it’ll take a few minutes for you to make your HR understand. It is tedious in the beginning but it is the most efficient way to save money.
Have High Interest Yielding Savings Account
Having a savings account and transferring the amount into it isn’t enough. You have to be smart about it. You’ve to analyze which bank you are investing in, what are its interest rates, what are its policies etc. It may not seem so important now but this interest amount itself might conjure up to a huge amount in few years of time.
Have A Fixed Budget
Every business starts with a plan and budget. In the same way, you also must and should have a budget. Many people often neglect this step. You should know the amount of money you spend on your basics, luxury and when you overspend. When you discover where you are overspending or spending on something that you really can’t afford it might be a warning signal for you.
Use Budgeting Apps And Savings Calculator
If you are not a big fan of accounts and if budget is not really your thing then don’t fret about it. You still have budgeting apps like Mint to help you prepare a budget. You can easily link your account to the app and the app will do its own calculations. Even after having the budgeting apps you could also use savings calculator. Savings calculators available online can help you in determining the money you need to save, spend and also adjust money to reach your financial goals. As I said, you need to learn the technology and automation and you’ll be good on your own. Easy Peasy!
Build An Emergency Savings Account
Another utmost necessary thing you need to do is to build up an emergency savings account. Amongst all the things it might seem impossible but think of it as a necessity. You do not need to save up a lot of amount in it just a bit by bit. Make sure you have cash that can last you for at least six month’s worth living expense that can come handy rather than having to depend on credit.
Take Control Over Your Credit Card Spending
Just because you own a credit card doesn’t mean you should abuse it. Many women tend to spend money on luxury using their credit cards. Sure bank gives you credit amount but it also has its own cons. If by chance you are unable to pay the amount then the interest rates are charged so high that you might as well forget your next month’s savings. Spend responsibly and stop depending on credit cards because they are addictive.
Follow 50-30-20 Rule
If you find it hard to decide how much to spend and how much to save, then go with this 50-30-20 rule. Spend 50% of your earnings on your basics like food, rent and others, 30% for your spending or fun and remaining 20% for your savings. That way you will know exactly how much you have to spend.
Try A Credit Card Detox
When you have a credit card in your hand, impulsive buying becomes a habit. Impulsive buying is a really bad addiction and so is credit card spending. So you should go on a credit card detox for a month and consider your financial priorities again. In this detox, you’ll actually understand the difference between wants and needs and the temptation of buying things will no longer trouble you.
Buy In Bulk
If you’ve ever done bulk buying before then you’ll know that bulk buying is a money saver. So ditch buying your necessities in small quantity and indulge in smart shopping by buying bulk quantities especially from supermarkets where you can also avail several offers.
Analyze Your Purchases
Bulk buying is not the only thing you need to do but you also need to be a smart shopper. Well, we women tend to get carried away when it comes to shopping and often forget to keep tabs of our budget. Try to analyze your purchases and invest smartly.
Don’t Pay Unwanted And Extraneous Fees
Keep an eye on your bank statements and analyze them. There might also be a chance that you might be paying extra unwanted fees and maybe this the time you get rid of them and instead save the money. Yes, these fees might just be petty amounts that might not matter but you need to keep in mind that these fees are cut from your account every month. You need to get rid of these fees.
Don’t Go Out Of Your Means For Anything
There may be times when people may go out of their ways and gift something unusual and expensive to you and even you, might be tempted to do so. But is it feasible for you? Ask yourself. Do not go out your way for anyone because you might regret it later on when you have payments to be done.
DIYs are pretty interesting if you really take an interest in them and they are money savers. There are endless ideas all over the internet ranging from DIY clothing to DIY room decors. If you find ways to save a bit and cut up on your costs then you’ll be surprised to see how much money you have saved in turn.
I m sure among all these tips at least half of them will help you in saving money. Alongside you might also invest in mutual funds, policies, insurance or gold, whichever floats your boat. But remember to save more and spend less!
Anisha is an aspiring writer. She's a graduate in BBM. An ambivert by
nature, she is very fond of reading sappy romantic novels, passionate
about singing, cooking and dancing, holds a keen interest in learning
new things and wanderlust.