Each month save a portion of your salary for longer benefits. This guide will tell you how to save money from your salary.
Modern people believe in living in the present moment, which of course is not bad. However, you should also be mindful of your future. Even if you do not want to be thinking about the future, invest a little bit of time in planning for your future, because lack of it can throw you into bankruptcy.
Let us understand with the example of a cricket match. A captain has 5 bowlers in his team, 2 of which are great bowlers. If he uses both the great bowlers at the start of the inning, he might be able to pick more wickets than usual, but the defeat of his team will almost be certain, as there will not be any good bowler to restrict the next coming batsmen. If the same captain mixes the spell of two of his best bowlers with average bowlers, then the chances of their win are more.
You 👆the younger or the modern generation, I am talking to you. I hope you have understood that while enjoying the present moment is good, you need to be mindful of your future too.
Now that we are on the same page, let’s learn to save money from our salary.
Step 1: Prepare a monthly budget
Preparing a monthly budget helps you be aware of your expenses.
We have stressed enough in our other blogs too about the importance of preparing a monthly budget. That will show you, how important it is to prepare a monthly budget. Prepare a monthly budget where you mention the incoming and outgoing of money, i.e. income and expenditure. Have a very detailed budget plan which shows all the details of your income and expenditure.
Step 2: Analyse your expenses
Analyzing your expenses gives you insights into the careless spending of your valuable money!
Once done with budget preparation, carefully analyze your expenses. See which expenses are necessary, which expenses will be repeated each month, and the useless expenses.
Step 3: Curb the useless expenses
Analyze the useless expenses and curb them!
Analyze your budget and all your monthly expenses. See where you can curb by analyzing each aspect of your expenses. First, keep aside the necessary expenses and then see the ones that are to be repeated each month. Now that you have excluded the necessary expenses, curb the other expenses. Yes, you can curb them, as they are not necessary and you can lead your life without them. If they were so important to you, then you would have included them in the necessary expenses.
Okay, now we know the procedure to save our salary, but there are a hell lot of temptations, which makes it impossible to save.
We got you and so we have certain tips as well to help you resist the temptations and save money.
Tips to save money from your salary
1. Automate your savings- Because we can’t trust our temptations. When you automate your savings, a percentage of your salary is automatically deposited in your savings account or as an investment.
2. Pay your bills on time- The EMIs or credit card bills if not paid on time, can result in a penalty, which makes you pay more than the amount you were supposed to pay. Also, it impacts your CIBIL score which prevents you from taking loans in the future.
3. Avoid loans or credit cards- A loan usually charges double the amount that you have taken from them. Also, avoid credit cards as there are many charges associated with them. Also, when you are using a credit card, you do not have the realization of losing money and so you might spend more than what you need.
4. Avoid unnecessary subscriptions- Do not fall prey to attractive Netflix ads or some other movie or show ads as they entice you into buying costly subscriptions which offer no real value.
5. Prefer cheaper entertainment- Why buy Netflix or any other subscriptions if all you want is entertainment? You can avail of entertainment from other apps which offer it for free. Apps like Youtube offer great content for no price at all.
6. Buy your stuff at once- When managing monthly expenses it’s always a great idea to visit the supermarket once in a while and buy all the stuff needed for the whole month. When you buy in bulk the cost is less and also you save time by not visiting stores now and then.
7. Do not buy fancy stuff- Why buy fancy stuff from branded showrooms, when you get similar products in a flea market or other shops? Also, prefer not to buy costly gadgets which are not necessary.
It is always a great idea to make room for a better tomorrow, which is by saving enough. Save today and you will be certain of your future. By saving, we are not saying to just stop spending on yourself. Just balance out between enjoying the present moment and saving for the future. Also, an important part of multiplying money is by investing it, so do not forget to invest.
Stay tuned to our blog for more quality pieces of advice in the future!
