Best Ways To Save Your Money

There are many reasons as to why you might want to save money. Some people would like to buy a house. Others would like to buy a car. While most people would like to save for retirement. Whatever the reason, you must save money in the right way. Here we will see how to save money with the best methods.

Saving money can be hard sometimes because due to the EMI, rent, and other expenses. You should be able to find out what is eating most of your salary. I had a friend who would go to Starbucks every other day. He used to spend 13 dollars each day on coffee. Without him knowing it, he is spending a big chunk of his money on coffee in the long term. If you add all that up, that would become a huge amount. After a few days, he started making coffee at home and saved a lot more. These small kind of changes in your life would have a big impact.

Here are a few tips to save money

Keep a goal for Savings

Whenever you get your salary each month, think of a number or percentage that would go towards your savings. You should not touch that money for any purpose except emergencies. The normal standard is for people to save 30% of their salary in banks, mutual funds, or any other businesses. By doing this, it will become a habit for you to save that amount each month, and by the end of the year, you will have good savings for other Investments.

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Stop eating out a lot

A lot of people don’t know it but by going out and eating very often, you are spending a ton of money on it. With only a small portion of it, you will be able to eat a lot more at home. It’s essential to learn cooking. Because you won’t be able to eat out every single day. And nowadays delivery is more expensive with Door Dash and other services. And tipping is a huge issue in the USA right now. People are tipping nearly 15 to 20% of their original amount.

Clear all debts

If you have any loans such as student loans, medical loans, or home loans. Try to clear it as soon as possible. You will feel a huge relief when that amount is all cleared up. Spending your savings each month towards those loans will bring a positive outcome towards your financial capabilities. Don’t let those loans become a burden for you.

Get generic stuff

You might like the feel of a soap which is expensive. Or you might want that specific toothpaste that feels nice in your mouth. But it’s better to get the generic stuff in your household. Even though it’s not to your preference. You will be able to save a lot more through this. And the generic staff is also getting a lot better each day.

Check your insurance and subscriptions

Without you knowing it, you might be paying a lot more for your gym membership or insurance which you don’t use much. Try to remove whatever is unnecessary and keep only what is needed. By doing this, the number of bills that are cut from your salary slowly comes down. You would be able to use that money for a better cause.

Bring down your electricity bill

Sometimes you would just leave the lights on or the fan spinning while you go to work. But this is not the only cause. The burn is not only to the environment but also to your pocket. Try to switch off the lights whenever you leave the room and don’t use the tap water for too long.

Invest in the right place

Most people just put their earnings in the bank. But due to inflation the value of that money slowly depreciates each year. So it’s better to invest that money in a low-risk place such as mutual funds. You can try it in the stock market and cryptocurrency. But that is high risk and requires a lot of understanding.

Buy the right property

Investment in real estate is just as important as any other investment. But you should always make sure you buy the right place. Or else you would be losing a lot of money. Ask your friends and family and also console a professional. If you buy an apartment, you can rent it out and earn some extra cash. This is what many people do as a living. But you would need a lot of initial capital to do that

Check your insurance

You need to have health insurance. Because even if you have a small issue it can eat up all your savings. But the kind of insurance that you have is dependent on you. Get the right kind of insurance for your health or car insurance.

Stop impulse buying 

There might always be some fantasy of yours. For some people it’s Disneyland, for others it’s that luxury store. Always remember the rule. By what you need, not what you want. This one rule can save you a lot of money.

Make a chart 

Each month after spending all your money, make a pie chart. This chart will be able to show you where you are spending most of it. And you will be able to understand where to decrease the amount. You will be able to understand what is needed and what is unnecessary.

Stop using your credit card

Remember that a credit card is always the bank’s money, not yours. So spend it wisely. Each time that you spend money from the credit card, try to save double the amount from your salary. This way you will be able to save a lot more than usual.

Friends and family 

Try to stop taking money from your family or friends. That will just put them in a bad position and you would have to pay them back. And in the same way, don’t lend much money to them. Because it might cause an issue with your relationship.

All of this only starts when you get yourself out of the bad position. It all starts with a single dollar. So don’t start next month or next week or tomorrow. Start saving now. Because you never know when you might need it. There have been many people who earned a lot of money by saving just a small amount. It’s all based on your hard work and luck.

Never try to put pressure on yourself by keeping higher expectations. It’s always better to slowly build up the money, rather than stopping all the spending altogether. That will affect your personal and professional life a lot.

These are some of the few ways where you will be able to save money. And one more tip is to never save too much. Because it’s also important to live your life. Make sure your work life and personal life are balanced perfectly. If you save too much, after a few years there are many things that you won’t be able to do. You have to do the right things at the right time.

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