Andrew Lo has very rightly stated that “Great investors need to have the right combination of intuition, business sense and investment talent.”

Besides these 3 important factors, you also need to invest in a proper channel such as SIP or any other option, in order to reap the benefits of investment. The right investment channel allows you to generate wealth by offering good returns over the time. However to make investments, you’ll need sufficient money.

Given that, if you have been working for a long time and still don’t see any savings in your account, the below mentioned 7 points will help you start saving:

1. Invest in SIP

SIP or Systematic Investment Plan is the easiest and the safest approach to invest your money. SIP allows you to invest your money in the stock market at lesser risks. Under a SIP plan, a pre-determined amount is auto-debited from your savings account and is invested in the mutual funds.

This allocates mutual funds units where you can purchase these units at different available rates depending on the current market price. By staying for a longer period, you can easily earn a handsome return. It also enables you to beat the market volatility. However, it is important that you choose the right plan. In this regard, SIP calculator comes in handy, which helps you find the value of your invested money. With an SIP calculator, you’ll get to know the actual fund value at the expected interest rate.

2. Transfer Your Home Loan to a Lower Interest Rate

Buying a home on EMIs is easy but repaying the amount can be tough. You might have to bear a higher interest rate during this repayment period. And, you may end up paying a higher amount than the actual loan amount.

That’s why you should consider a financial provider that offers loan at a lower interest to save money. Usually, government institutes offer loans at lower rate of interest. Make sure you research thoroughly before opting for one.

3. Pay Utility Bills On Time and Save More

Try paying your utility bills such as water, electricity, mobile bills on time, even before the due date. A late payment on your mobile bill of Rs. 500 might cost you double if paid after the due date. You can set a reminder to remember the exact date to avoid late fee addition to your bills. By avoiding those late fines, you can save on your pocket.

4. Compare Insurance Policies Before Buying And Save More

You already know this. Insurance companies make most of their income from the loyal customers who have been with them for years. This way you can also get a suitable discount.

For instance, if you buy your home insurance from the same insurer from whom you’d bought your car insurance a year back, you can negotiate with insurance provider for prices. Moreover, most of the insurers offer discounts if you buy the plans online. Online buying method also helps you compare various insurance policies and purchase as per your budget.

5. Try Paying More than the Minimum Due Amount

When it comes to paying credit card bills, try paying the maximum amount. As the interest rate on credit cards is comparatively higher, it is better to pay as much as possible and clear the debt. Or else, you can borrow the required money from family or friends and return it according to your comfort.

6. Make a List of Things before Shopping and Stick to It

While shopping, we tend to spend more than the expected budget and it is the case with almost everyone of us. One of the best ways to stick to your budget and spend less is to shop with a pre-prepared list. Without a list, you may end up making impulsive purchases, sometimes unnecessary ones. With a list, you will at least stick to your budget and don’t spend on unnecessary items.

Also, you can take the advantage of cash back offers with various apps, which is quite common these days. You can use these cash back offers and reward points to save money.

7. Opt For A Family Floater Plan

In the age of inflation, health insurance is not a choice, but a necessity. It keeps your savings protected by mitigating the hospitalisation expenses during a medical emergency. However, rather than going for an individual plan for each family member, consider buying a family floater plan. You can cover each of your family members under a single premium which is said to be a cost-effective approach.

8. Keep a Track of Your Monthly Expenses

It is important to figure out your monthly expenses. Try to get a rough estimate of your monthly expenses before your salary hits the account. Keep a track of all the expenditures including EMIs, conveyance, household, utility bills etc. Organise the list of fixed expenses and pay them accordingly. This way you can keep an eye on your expenses and try to spend less wherever is possible.

 

Wrapping it Up!

The hardest part of saving money is getting started. Initially, it can be difficult to limit your expenses or figure out ways to save money. However, once you’ll develop the habit, it is difficult to break it. In line with this, you can consider the above-mentioned tips to practice the art of MANAGING your EXPENSES!