Saving money is one of the most important habits to inculcate in life. Saving money enables you to become more disciplined and plan long-term goals that are important to you and your family. Whether it be learning to spend less on frivolous things or walking short distances instead of using your car, saving money goes a long way in helping you stay disciplined and financially stable. Here are 7 best money saving ideas that you need to follow to give you big returns both in the short as well as long run:
1. Plan your monthly budget:
One of 7 best money saving ideas you can easily implement is to start making a clear budget at the beginning of every month. How will planning a monthly budget help? Not only will you be able to keep track of your expenses, but also realise where your hard earned money is being spent. It is human tendency to give into impulsive buying and engage in purchases that give us instant gratification. Planning a monthly budget helps you re-evaluate your spending patterns and helps you actively eliminate purchases that fall outside this budget. It helps you become more financially responsible. One way to do this is by splitting your budget into essential and non essential expenditure. Essentials would include household items, groceries, bills etc. Non-essentials include shopping for clothes too often, eating outside more frequently and so on. The key to good planning is figuring out where most of your money is going and finding money saving methods to minimise those expenses. Planning is a good start on how to save money every month.
2. Sign up for a long term investment plan:
If you’re wondering how to save money every month, starting an investment is one of the 7 best money saving ideas you can follow. You can consider a recurring deposit scheme in your bank, a long term insurance policy such as an LIC policy or a similar policy, a national pension scheme or even an SIP. There are several good options to choose from for a long term investment plan. Investing in a policy makes sure that you allocate a certain amount of your budget without fail every month. No matter what you do, this amount will be deducted from your account regularly. It's an excellent money saving method in the long run. Check out some good investment plans and save up for the future!
3. Cut down on impulsive shopping:
Do you find yourself buying absolutely unnecessary items that provide no added value to your home? If so, you suffer from a habit of impulsive shopping, wherein you make decisions in the spur of the moment without thinking and invariably end up spending a lot of money. Impulsive buying happens to all of us. We’ve all been guilty of picking out a random dress or hoarding food. That’s normal. But there’s a limit to which we should do this and being aware of that limit becomes extremely important while trying to inculcate a saving habit. When you consciously start cutting down on stuff you don’t need, you’ll be surprised to see how much you end up saving! In fact, you can save up for that dreamy vacation or your coveted smartphone.
4. Keep track of your credit card expenses:
Credit cards are both good and bad. Good because you can spend without worrying too much, as long as you stay within your limit. However, credit cards become dangerous when you start crossing your limit regularly. And you eventually fall into a debt trap and are left with huge credit card bills at the end of the month. You need to actively write down your credit card expenses every month. If possible, try using a debit card or alternate options. You can also find other ways to utilise credit without going through the hassle of a credit card. For example, Rupeek gold loans are a great money saving method that allows you to pledge gold in exchange for credit that you can use and then pay back through flexible EMIs.
5. Split your salary into two separate accounts:
If sticking to a budget seems difficult, how about using two different accounts to manage your salary. You can redirect a fixed amount of money into another account to be kept aside as savings and then use the remaining amount for your monthly expenses. You should be disciplined about not touching the other account unless absolutely necessary such as a financial emergency or an important family function. Find out with your company if it can redirect your salary into two accounts as well. It is indeed one of the best money saving ideas that you need to follow.
6. Diversify your investments:
Don’t make the mistake of putting all your eggs in one basket. For example, if you invest most of your money in mutual funds and the market crashes, you lose a lot of money and there’s no telling when you’ll recover your losses. A financially prudent person will always diversify his/her investments across different avenues to ensure that even if one investment fails, the others don’t. You can invest in fixed deposits, mutual funds, LIC policies, PPFs etc. This will help manage risk and enable you to save money in the long run.
7. Make simple lifestyle changes:
If you’re wondering how to save money, take a moment to evaluate your lifestyle. Do you eat out too often? Or are you a shopaholic? See how you can cut down on these expenses. For example, cooking at home, using public transportation, taking up more household chores instead of hiring a maid, cutting down on expensive branded clothing are some of the ways through which you can significantly reduce your spending and certainly increase your savings. Writing down your progress in a journal will help you stay motivated throughout the process.
These are some of the best money saving methods that you need to follow to become financially responsible for the wellbeing of your future. But sometimes, no matter how much you manage to save, there are times when you find yourself stuck in an inadvertent financial situation such as a family emergency, medical emergency or any other unforeseen scenario. Here’s where loans end up becoming your saving grace. There are several loan options to choose from, the most common being personal loans . However, some personal loans come with a high interest rate, which becomes an additional financial burden when you start paying back your loans. Instead, you can opt for a gold loan, which has a relatively low interest rate since it is a secured loan.
Why gold loan?
Since gold is a must-have ornament in Indian households, using them to gain credit for emergency purposes is extremely common. It is one the safest loans as gold is the collateral pledged, resulting in low interest rates. This is a huge advantage compared to personal loans that are unsecured and have a higher interest rate. They also have faster processing periods and minimal documentation requirements as the lenders have gold as the collateral, which will be auctioned off in case the loan cannot be paid back by the borrower.
Rupeek is one such gold loan provider that instantly gives you a gold loan when you most need it. You just need to place a request on the Rupeek app after finding out the value of your gold through Rupeek’s gold loan calculator. Rupeek’s highly trained gold loan personnel will come to your house and do the gold appraisal and personal loan transfer right in front of you. Once your KYC documents are verified, the loan amount will be directly transferred to your account and your gold will be safely protected in trusted partner bank vaults. You can pay back comfortably through low-interest EMI options.
With Rupeek gold loans, you can save money, while still being financially secure!