10 Money-saving tips to keep your finances on track

- May 17, 2022

The main problem of today's youth is that they spend everything. If someone is earning 10 rupees, they look for a way to spend that 10 rupees. I have seen this tendency in most people like my mates, friends and even in the family. Even as a child, when relatives used to give us 500 rupees, we spend it on luxury pens, spiral-bound notebooks, and much other useless stuff. The problem with our generation is that we tend to live a lifestyle where expenses are exactly equal to income. Always love below your income. If you are earning 10 rupees, try to live a lifestyle as if you were earning 7 rupees. This not only cuts downs your unnecessary expenses but you can save a lot and invest for your future. Trust me, investing is not only necessary to secure your future but it actually helps a lot in generating wealth, thanks to the power of compounding. And the savings you keep aside will help you through tough times in case of emergency. Therefore, the ten most important saving tips are as follows:-

1. Save regularly.

Pay yourself first. you must do this, it's a sure way towards financial freedom. You must save consistently maybe it's weekly or monthly. but it must be regular. Whether you are an earning member of your family or you are getting pocket money from your parents, you must save some part of it.

2. Avoid interest on your credit card debt

If you've got card debt, put a strategy in place for getting rid of it. Don't panic if you haven't got a handy lump sum amount, you can achieve the same end result by transferring the debt to a 0% balance credit card to avoid paying interest for a fixed time (up to 30 months) and paying off a set amount every month.

3. Weather the storm

If the covid crisis has taught us anything, it's the importance of a rainy day fund. If yours has taken a battering recently ( or you never really had one ). The rule thumb is to have three months' income saved for emergencies, ideally six if you have a mortgage.

4. Beware of BOGOFs!

Many times do you walk in a supermarket and fall victim to a BOGOF(Bye One Get One Free) deal? says Robert Gardener, Director of Investments at St James's place. We've all done it.

5. Track spending

Keep track of your monthly cash flow - your income minus your expenditures. This step will also make it easier to mark progress toward your savings goal. There are many apps that can track your spending.

6. Cancel unnecessary subscriptions

Uncheck the auto-renew options on any subscriptions you aren't using regularly, You might even be paying for subscriptions you no longer use or need. Reviewing your credit card or bank statement carefully can help you flag any recurring expenses you can eliminate. And avoid signing up for free trials that require payment information, or at least make a note or set a calendar reminder to cancel before the free period ends.

7. Reduce your electricity bills

Big and small changes in your energy usage and expenses can help you save hundreds annually on your bills. Turn off appliances and lights when they are not needed. Purchase energy-efficient appliances only.

8. Reduce your gas usage

You can't control prices at the pump, but you can do several things to cut your gas use and save money. Try using a gas app to pinch pennies when you do fill up.

9. Minimise restaurant spending

One of the easiest expenses to cut when you want to save more is restaurant meals, since eating out tends to be pricer than cooking at home. If you do still want to eat at restaurants, try to reduce the frequency and take advantage of the credit cards that reward restaurant spending.

10. Separate wants from needs

Distinguishing "wants" from "needs" will truly help you realize how much power and control you have over your budget. If you're choosing to spend money on wants, you easily can choose those items and re-direct your money elsewhere. After all, Saving is not always about numbers. It's the art of aligning your spending with your values.