Turning 30 is not just age, it is a milestone. And may we say a rather huge one, financially. Chances are you know your goals and are working towards them. By 30, you are also likely to know the importance of savings and how it can be helpful in later stages of life. The earlier you start saving, the better it is for you.
Hee, we got 5 easy and smart ways to save money before you turn 30. Read on and join us on the saving journey.
Keep a tab on your expenses
Repeat after us- “I will keep a tab on my expenses every month”. Now repeat that again!
We can not pay enough emphasis on how important it is to maintain a record of your expenses. It is only after you know where your money is going and where can you can cut corners to limit your expenses. The money you end up not spending is eventually what you will save.
Try to do more digital transactions so you have a record of your spending. You can also use money tracking apps to keep a tab on your expenses. Doing digital transactions can also have benefits such as additional saving and cashback. Different credit and debit cards can help you save up to 20% on your transaction. Digital wallets such as Freecharge can also get you Cashbacks.
Split your Income
This age-old trick is still super relevant, we promise.
Just divide your income into three. 50% of it for your necessary expenses like food, bills, travel, rent, etc. 30% of your income towards leisure, wants, and luxuries like vacations, interior upgrade, wardrobe revamp, etc. Dedicate at least 20% towards savings.
Saving that you make in your 20s can take you a long way to afford a comfortable living in the later stages of your life. It is in these years, that you have fewer liabilities and higher disposable income. Which means your ability to save will be greater now than ever.
Get your investments kicking
If you don’t make money on your money, you are doing it wrong!
In 2021, just saving money is not enough. You also need to invest it- the best way to make money on money. Get your fundamentals of investments clear and decide an investment path for yourself. Determine your risk tolerance while you invest to ensure you don’t mess up.
It is also a good idea to diversify your investments. This increases liquidity and reduces risk. Some investments you can consider investing in Fixed Deposit schemes, Gold (physical and digital), Recurring deposits schemes, Equity, Mutual Funds, Bonds, Insurance, etc.
Stop that impulsive buy
This is your sign to not make that impulsive buy, seriously!
Impulsive buys can give you that momentarily adrenaline rush but they cause a major burn in your bank account. It is best that you avoid impulsive buys and save your money for more important things you may have.
Try self-imposing a 24-hour rule. This means give yourself 24 hours to think if you actually need to buy what you are eyeing. Chances are after 24 hours, your answer will be a no. Now you can pat your back for not being impulsive and not splurging in indulgence.
So, that next iPhone or that PS 5 can wait for a little longer.
Invest in Tax Saving Schemes
No, income tax is not the hardest thing to understand.
Now, you have got to understand that if you earn over 2,50,001 per annum, you are liable to pay taxes to the government. Different Income slabs are taxed differently, so understand the slab you fall in.
Mutual funds, NPS (National Pension Scheme), ELLS Funds, ULIP, Provident Fund (PF) are some good schemes to invest in to save income tax.
Additional ideas to save money
Little things can go a long way when they add up. Here are some easy-to-follow ideas to save additional money.
Try limiting your take-outs, food deliveries, and restaurant visits to save on food expenses. Pick up cooking as a skill or hobby- not only will this keep you healthy, but also help you taper down your expenses on food.
You do not need a 4-screen Netflix if you are the only one watching or that unlimited calling pack on your phone if you don’t have a lot of on-call hours. Go through your subscriptions again and re-evaluate them. Unsubscribe services you don’t use or intend to use any time soon. You can always re-subscribe to them when you want.
Get better plans on subscriptions you actually use and pay only for that. This simple way can help you save quite a few bucks
Always be on the lookout for deals, vouchers, coupons, and cashback. They can help you significant money when used right.
Start now with these smart ways to save money!