Everyone wants to earn more and get rich as quickly as possible. However, to do this, it is important to have a head start on saving money. Read this to understand.
World Savings Day, a day dedicated to the promotion of savings, is celebrated on October 30 around the world. The day highlights the need to save for the future. Saving is imperative because it helps us to meet our financial commitments at a later date, for example to buy a house or a car.
In simple terms, savings represent an individual’s unspent earnings. It is the amount left over after meeting personal expenses over a period of time. The funds saved or set aside allow us to deal with the unexpected.
But, how can we do this?
Here are the key tips to follow:
To start, you need to set a goal before you start saving. It could be the aspiration to buy a new gadget, a new house, or to save money for future contingencies.
Once you are clear on the WHY part, it will be easier to be disciplined about the practice.
Keep checking your unnecessary overhead and spending where needed rather than spending money on payday when it can be saved for better purposes.
Mayank Goyal, Founder and CEO of moneyHOP also suggests individuals make sure they don’t spend more than they earn.
“It helps to develop a habit of budgeting from an early age. The first thing to consider is to look through what they have spent over the past few months and become aware of major expenses. This exercise in itself- even can be quite telling and can point one in the direction where they can save more.A healthy savings rate is around 30-35%.Savings should not be what is left in the bank account at the end of the month, but rather something one can do as soon as they get the paycheck,” Goyal said.
No matter how hard people try, they cannot completely reduce expenses to zero. But one can spend smarter by using online payment apps and using vouchers and cash back which in a way helps to save while spending.
The earlier you start, the longer you can accumulate money. According to financial experts, new investors should spend a lot of time learning about an investment before jumping in.
(Edited by : Priyanka Deshpande)