5 tips to help you save money this year
It’s difficult to set aside a portion of your income every month as savings. Funding expenses like electricity bills, maintenance charges, and rent can blow a huge chunk in your finances. And by the end of the month, you don’t know how you’ve burnt through your money so quickly.
If you’re in a dire situation where you’re unable to save a part of your income every month, you need to make a plan to set aside a certain sum. These tips can help you with that.
- Set a budget
You don’t need a detailed account of every single transaction you’re making, but always have a rough estimate of how much you’ll be spending in a month.
Set aside a certain portion of funds and make a promise to yourself that you’ll only spend it on food. Similarly, allocate a sum of money to every necessary expense in the month. That way you can keep that portion of money aside, and you’ll know the amount of disposable income you’re left with.
- Think before making a purchase
Once you’ve got an estimate of how much your disposable income will be, decide what you need to buy with it. Is that new dress absolutely necessary? Do you really need those new leather shoes?
As much as possible, cut down on unnecessary expenditure. It’s the easiest way to save a ton of money.
- Open a savings account
What you could do instead of blowing up your money, is transfer it to a savings account.
So once you’re done budgeting your necessary expenses, set aside the remaining funds in a savings account. Don’t even think about touching it, unless of course, your circumstances are dire.
- Avoid Buying on Credit
If you’re used to purchasing things with your credit card, cut down on this activity as much as possible. If you’re in a financial fix, it will be difficult to repay the credit card loan to your bank. And delayed payments will lead to a higher rate of interest, exponentially increasing the amount of money you need to repay.
- Switch Lenders
Did you know that you could switch your existing home loan to a different lender?
That’s right. If you feel like the interest rates on your loan are too high, you can find a lender who provides a lower interest rate and transfer the loan to them, for a small fee.
This will make it a lot easier for you to pay the monthly instalments, and you’ll end up spending a lot less.
These are a few ways in which you can save a large amount of your income. Make a conscious effort to do so, and your life will be free from financial burdens of all sorts.