5 Quick Money Saving Tips That You Must Know

BUDGETING

The #1 way to save money better: BUDGETING

Ya, we know that this is one of the most-used terms (and most-boring too, maybe?). But think about it.

As a child, we may have taken 'pocket money' from our parents. Even at that young age, we unconsciously planned to spend the money in a certain way. This, right here, is a form of budgeting.

As an adult, you have more money, and a longer time period to spend. For example, a salaried individual has 30 days to spend that one month's salary. You spend some. You save some.

So, while budgeting may seem like a complex strategy, it's really quite simple. It's also something you know about intuitively already. It's just about ensuring that you avoid any one-off mistakes.

This brings us to the 50-30-20 thumb rule. It can make budgeting a breeze.

According to this rule, here's what you need to do.

1. Spend 50% of your income on your needs
2. Set aside 30% for your wants
3. And make sure 20% of it goes to your savings

This is one small step in your monthly schedule, but one giant leap for your savings.

Here are some other actionable ways to save money:

Once you get your budgeting game on point, there are numerous other small things you can do to save money. Here are some practical ideas.

1. First things first—the moment you get your income, schedule and plan your savings first. That way, you wouldn't end up over-spending. And that way, you can spend on whatever you want without any guilt or worry.
2. Pay off your high-interest debt on priority. This way, you can save a lot of money for yourself. For example, your car loan could attract a higher interest of say 11%. The home loan, on the other hand, could attract an interest of just 8.5%. Plus, it helps you get tax benefits too. So whenever you have any extra income, even if it's a small amount, use it to pay off your higher interest loans like credit card debt and personal loans. Once they're settled, you'll free up a huge portion of your income. You can then smartly redirect it to your savings.
3. Cut down your discretionary costs. Well, not all of them. But the expenses that you don't really need - like unused subscriptions or indulgent purchases - those can potentially be traded in, right? Whenever you have a hard time making that heart-breaking decision to say no, ask yourself—is this what you really want or really need. If it's a need, go for it. But it's a want, simply tell yourself, you will buy it the next week or next month. Trick your mind into believing it. For all you know, you may simply forget about it!
4. Plan your meals. Plan your travels. Plan your regular expenses too. See if you can get ready-to-eat items from the grocery store that you can carry. It can help you save the extra cost from eating or buying from outside. This way, you reduce the chances of overspending by a huge margin. The end result? More money to save!

Schedule and Plan your Savings

First things first—the moment you get your income, schedule and plan your savings first. That way, you wouldn't end up over-spending. And that way, you can spend on whatever you want without any guilt or worry.

Pay off your high-interest debt

Pay off your high-interest debt on priority. This way, you can save a lot of money for yourself. For example, your car loan could attract a higher interest of say 11%. The home loan, on the other hand, could attract an interest of just 8.5%. Plus, it helps you get tax benefits too. So whenever you have any extra income, even if it's a small amount, use it to pay off your higher interest loans like credit card debt and personal loans. Once they're settled, you'll free up a huge portion of your income. You can then smartly redirect it to your savings.

Cut down your discretionary costs

Cut down your discretionary costs. Well, not all of them. But the expenses that you don't really need - like unused subscriptions or indulgent purchases - those can potentially be traded in, right? Whenever you have a hard time making that heart-breaking decision to say no, ask yourself—is this what you really want or really need. If it's a need, go for it. But it's a want, simply tell yourself, you will buy it the next week or next month. Trick your mind into believing it. For all you know, you may simply forget about it!

Reduce overspending chances

Plan your meals. Plan your travels. Plan your regular expenses too. See if you can get ready-to-eat items from the grocery store that you can carry. It can help you save the extra cost from eating or buying from outside. This way, you reduce the chances of overspending by a huge margin. The end result? More money to save!