“Don’t save what is left after spending, spend what is left after saving”. This is perhaps one of the best savings advice offered by the iconic Warren Buffet. However, life always gets in the way, and saving money gets a lot more challenging.
Fortunately, it isn’t impossible. With better spending habits, automating your savings, or opening a savings bank account, saving more money can come naturally to you!
Here are five ways to help you save more this year.
Five ways to save more
Here are five ways to save more that you can make use of from this year onwards:
1. Evaluate your Expenses
The first step to saving more begins with identifying your expenses. For a month, keep a digital track of all your expenses – groceries, utility bills, personal expenses, transportation, and more. With a clear picture of your monthly spending, you can figure out the following-
- the portion of your income spent on necessities
- the expenses you can cut down
- the estimated amount of income you can save
2. Set a Goal
Once you have a clear picture of your monthly expenses, you can set a fixed budget and your savings goals accordingly. This way, you will know how much you want to save and how you can achieve that goal. Without any specific target in mind, tracking your progress gets tricky, and you might end up saving less than you intend to.
3. Find Ways to Reduce Expenses
If you’re unable to save as much as you want, it might be time to cut back on unnecessary expenses. Identify the non-essentials such as dining out every weekend, regular trips to your favourite coffee shop, or the automatic subscriptions you no longer need. Further, find ways to save on your fixed expenses such as car fuel or mobile phone plans.
By distinguishing your needs from your wants, you’ll be able to develop a better savings habit and save more in a year.
4. Pay Off Your Debt
Whether it is loan EMIs or your monthly credit card bills, they often form a significant part of your regular expenses. Hence, to gain control of your savings, try tackling your debt quickly with the snowball method. Start with the smallest debt and move on to the largest.
This way, you will save on total interest payout and get free of the debt much sooner. Then, you can start diverting these funds towards your savings goal.
5. Open a Savings Bank Account
This is perhaps one of the most reliable ways to prioritise savings and save more over time. A savings bank account is easy to open, keeps your funds secure, and offers attractive interest earnings to grow your funds over time. Consider setting up automatic payments to your savings account every month to save hassle-free.
Besides, a savings bank account lets you build a nest egg for your future while still offering you high liquidity of funds. The best part? With certain banks like IndusInd Bank, you can apply for a savings account online and start saving instantly!
Be ready to save more this year with these essential saving tips. While the others might take you some time to get into, opening a savings bank account can happen right now! IndusInd Bank offers a range of savings accounts tailored to meet your unique financial needs. So research and compare the best savings accounts and start