10 Ways to Save the Money For Bright Future
The simple and Easy way to save the money is accurate plan. The following steps can help you to save money
1. Create a Budget
It is difficult to save the money if you don't know where it is to be spend. Creating a budget is not hard in fact you have two options it makes the budgeting easy first one is using of Budgeting calculators or worksheet and we can use the mobile apps too these are the most powerful options to creating the budgeting.
To save the money creating a budget is an important aspect to save the future you can see it from my previous blog Budgeting and Money Management.
2. Set the goals for Saving
To set the goals for saving, firstly you categories the goals like short-term goals, long-term goals and mid-term goals. Next, create a plan by using you income and spending money you can use the budgeting techniques like 50/30/20 you can refer article Budgeting and Money Management to determine the amout to save the money regularly.
- for setting the goals for saving you can use the following methods:
i. use the SMART method:
it is a method used for setting the goals that makes them more likely to be achieved. It makes your goals to be specific, measurable and achievable based on your income.
ii. Categorize your goals:
For categorize the goals you can Seperate your goals such as Short-term (for ex: vacation), Mid-term( Car loan, Education) and the Long-term (retirement, home purchase)
iii. Create a Plan to achieve your goals:
- Analyze the income and spending of your income: you can access your income and set how much you really save the money.
- Creating a rule for Budgeting: Try to use 50/30/20 rule for budgeting which allocates your income
- 50% for needs: rent, groceries, transportation, utilities.
- 30% for wants: entertainment, hobbies, shopping.
- 20% for savings and debt payments: emergency funds, investments, retirement accounts.
iv. Choose the right savings account:
you need to check the saving account and select that account to achieve your goals more accurately and as a result you can grow your money quickly.
v. You can Automate your savings:
Set up automatic transfers from your main account to a seperate savings account. this approach of automating the things will help you consistently save your money.
3. Eliminating the Debt
For eliminating our debt the first step is taken into the consideration that you need to prepare a detailed info about your income and expenses.
- Firstly you list all the debts: Firsly you need to write down your all loans and credit cards, including the creditor and the total balance.
- Track of your expenses: This can be done by analyzing where your money is going to identify the area where you can put it back.
- Compare your expenses: you can check the monthly expenses by subtracting from total expenses, including debt and from your income.
4. Invest in a Guarrented Return Plan
While keeping your money in your bank account, invest it using a guarrented return plan like fixed deposits and insurance backup plans. These plans can help you risk free environment over a fixed period of time. They can help you to grow savings and you can spend it in your expenses like education, retirement, buying home.
5. Build an emergency fund
Emergency occurs any time in our life, your expenses do not stop you there is need to build emergency fund learn more link for Budgeting and Money Management.
6. Use credit cards judiciously
This is an important point while using the credit cards you need to pay your bill in full and on time every month not paying the credit card dues can led to to multiple issues. This can be the most important point to and it it mindful for spending your habits, using the card for emergency time and avoid the late payment of the dues.
7. Lower your light bills
You can Turn off the electronic devices such as Television (TV), Fans when there is no need and there is an alternative you can switch to solar devices. It can help to depend nature light as you can use it.
8. Lower you cellphone and telephone bills
By following this step you can check what all the service providers in the market and choose the most affordable plans to pick from it. You can use the family plan or couple plans to lower your bills.
9. Look for discounts, coupon codes and cashbacks
You can reduce your expenses by finding and checking the discounts, coupon codes and cashbacks. Many brands can offer the rewards and discounts time to time.
10. Build Habits of Saving
You can Make saving habits by setting automatic transfers and by checking your account daily each month. By setting the financial goals you can track your expenses and reduce the spending.
Conclusion
Saving money is the most important step towards a bright and secure future. Follow these simple steps, manage your budget wisely, and you can achieve financial independence with consistent savings habits.