Do you remember learning algebra, trigonometry, calculus in school?😵💫All that maths and yet most millennials and Gen Z can hardly do simple budgeting or financial planning to save their salary every month.
So how do we become better at saving money and planning our finances? Here is a quick class –
Overspending is a silent budget killer
The first and foremost thing to start with is to curb overspending. A simple, proven way for this is to create a monthly budget plan by allotting how much you wish to spend on different categories. For example, if you earn ₹xxx a month, you may split this as follows:
- Up to 20% for electricity, water, and grocery
- 10% for shopping
- 10% for other essentials
- Up to 30% for insurance payments/EMIs (if any)
- 30% SAVINGS
By strictly dedicating a particular portion to a specific category, you will be able to keep a check on overspending and save monthly.
Saving every day goes a long way
Rising prices of electricity, petrol, and daily essentials eats up most of your income. Minimizing its impact through smart management is what you need to keep your saving goals on track. Here are some tips for you to save daily.
- Become energy-efficient to kickstart savings
- Use public transport to curb petrol expenses
- Adopt an active lifestyle and avoid using vehicles for short distances
- Look for online stores offers on Freecharge to earn cashback
- Compare offline and online rates while shopping
Get more from your savings
As important as it is to save, investing your savings is equally essential. The ideal way to start is to invest parts of your savings across multiple platforms in different forms. Here are some of the options you should try to create a diverse portfolio.
- Earn interest by putting your money in a savings account (compare different types of accounts and choose the one that best suits you)
- Open a recurring/fixed deposit account and start parking your savings for a good return upon maturity
- Research and look for low-risk, high-return mutual funds to invest safely and efficiently
- Plan on allocating a part of your savings to health/life insurance cover for a protected future
- Gold investment is considered to be the safest and fruitful option. So, putting your savings in gold is indeed a win-win deal
- Investing in stocks is another popular option to earn greater returns but requires thorough research and analysis as it brings along a significant risk
Keep your finance game on-point
As the title says, saving money is not rocket science but smart art. We know financial planning is tricky but strictly cutting down on overspending, efficiently saving on a daily basis, and capitalizing smartly on investment options is all you need to keep your money game strong and future secure.