Let us be honest, most of us feel stressed over savings. We all wish to save as much as we can, but more often than not, we fail. You have come to the right place if you can resonate with this and are looking for effective ways to save money. We list down a few innovative ways to save money in this write-up.
Invest in a savings plan
Over the years, the definition of savings has changed drastically. Today, savings is not just about putting your surplus income aside and letting it sit idle, but it’s more about finding ways to grow your savings. This is where savings plan plays a vital role.
Today, there are several savings plans in the market; you can invest a small amount in any of these plans and let your money grow in the long run. The savings plans require you to invest a small amount periodically and get valuable returns in return.
The key to growing your savings is to choose the right savings plan that aligns perfectly with your goals and budget. Some of the popular savings plans that you can choose are NSC (National Savings Certificate), SCSS (Senior Citizen Savings Scheme), PPF (Public Provident Fund), SSY (Sukanya Samriddhi Yojana).
Find an alternative income source
If you are the only earning member in the family and have a single income source, you may struggle to save enough for your future, or you may not be able to save as much as you would like. It is advisable to look for a secondary income in such a situation.
This could mean starting a part-time job or doing a side business to generate additional income for your family. You can leverage your skills to your advantage and earn income from them. For example, if you are good at baking, you may start baking classes in your locality or even take online courses.
This could help you get an additional income to divert towards savings.
Skip the credit card
Another effective way to increase your monthly is to use your credit card sparingly. When you have a credit card, you may be tempted to buy stuff that you don’t need right now or when you don’t have cash on you. Although you may get momentary pleasure from the impulsive purchase, you may regret it later as your credit card bills amount.
Avoid using credit cards as much as possible, especially while focusing on increasing your monthly savings. This will help you avoid making unnecessary purchases, and you can divert the money towards savings.
Use a budget-tracking app and set monthly targets for expenses
Set a monthly goal for your expenses. Focus on meeting the necessary and unavoidable expenses like paying off the bills and EMIs. Once that is done, chart a realistic plan for expenses and savings by making a budget. More importantly, try to stick to the plan and the budget allocated for each household expense.
Another smart thing to ensure savings every month is setting aside a specific percentage of the income towards savings and managing the expenses with the remaining amount.
Saving money is not all that challenging as it may seem. It only needs proper financial planning and discipline. Try the above tips, and you will surely see your savings grow significantly.