World has suffered a lot due to COVID and lockdown measures. Economies have seen devastating effects and personal income has also declined drastically. So, you assuredly need some extra income sources that can help you to cope up the current situation. Savings are that bridge which will help you cover the sudden gap of unemployment and severe decline in incomes due to the pandemic. Earnings to meet your planned retirement goals can be another reason for having to build some extra savings through a strategy that can surely appeal to you too, despite of the fact how much currently you are earning from your primary job. It is just an indirect way of earning more money to be financially secured.
So, coming to the real idea, this article aims at various ways to save money. Saving is not at all your way, the most unavoidable one are the various distractions that we have to face. Major distractions include unnecessary shopping, irrelevant expenses, and many more. But anyway, you need to make your way through all these distractions and hurdles and direct your aim at your savings goal. We are here to help you out with the chaos. This article aims at acquainting you well with the various methods that you can follow in order to channelize your income into savings, instead of spending them on irrelevant things that may not be even on your shopping list. So, what are we waiting for? Let’s begin and take these techniques ahead together.
Let’s start with food. We all spend unbelievable amount on food every day. But that is something that cannot be avoided as well as cut on.
And of course, I do not aim to make you do so. But, believe me, there are some ways that will ensure the both ways, that is you need not compromise on your food stuff and eating habits and also you can save pretty well from your food expenditure as compared to previous expenses. So, here are those tips that I was talking about which directs us on how to save money each month on food.
In order to save money from your food expenditure, the most important thing that can help you save a lot is to cook at your home yourself. We cannot even imagine how much in total we must have saved till now if we were to save that money that we spend on outdoor food and instead we were to cook at home. Not only the savings benefit we avail from cooking at home, but also we will be getting other benefits that include proper hygiene, the best quality and of course, enlarged quantity than the quantity we would get if we were to buy it from outside in the same price.
Meal plan like a boss.
Coming home after a long day in your working place can be exhausting, but when you come home and realize there is no food to eat and you need to cook first, this can be heart breaking. To get rid of this devastating you can pre plan your meals. Knowing what you are going to eat can help in generating enthusiasm and energy to cook early. Because you know, the earlier you will cook and the earlier you will get to eat that you are craving for! And on the other point of view, meal planning helps you stick to your grocery budget. Buying grocery for the whole week together in whole sale will help you save more money and time as well.
Shop Around If You Really Want to Save Money Each Month
You need to explore all your options to seek out the best deal that not only provides you with the lowest comparable price but also the best comparable quality. I cannot even actually mention the number of things we need to shop around in order to save money. It includes everything, but some names are electrical appliances, groceries, smart appliances, technical stuff, clothes, furniture and the list goes on till infinity. You could save hundreds of dollars or more every year.
Budget for savings
Once you are aware of what your goals are and for exactly what purpose you want to save and your savings amount goal, you can start with channelizing your budget you’re your estimated goals and you can make a corresponding and apt cut in your expenses accordingly.
Your budget should help you in estimating how your expenses are going to match your income, this will enable you to plan your expenditure to curate savings and limit overspending.
Find ways you can cut your spending
There are innumerous ways to cut your spending and expenditure, but here I am mentioning some of them that will provide you with an idea and will direct you to the vision that will change your perspective towards things.
Save Money With a Little DIY Home Maintenance
Do your own yards work
Make simple repairs around the house.
Do your own cleaning
Cook your own food.
Prefer walking instead of using any conveyance.
Spend less on clothes
Cancel extra ordinary outings
Avoid dining outside
Do your laundry yourself
Get your extra ordinary channels that are not in use, cut out of your cable.
So, you will notice, this list is assuredly never going to end!
Decide on your priorities
After all, all your expenses and income are going to be the two most important aspects that will determine your amount of savings; you must know how to handle them. In order to increase your income, you can for passive income options and the best rewarding investments with least associated risks. And on the other hand, you must know which expense is not necessary now and can be cut off to increase savings. This is what we call prioritizing and sorting out what matters and what not and how much! Be sure to remember long term goals as well as short term goals of savings.
Pick the right tools
Every investment option comes with many pros and cons. So, while deciding where you want to invest, all you have to do is sort out your preferences, compare various options and the risk associated and then opt for the right one. Here, I am mentioning some of the best investments that provide best rewards as compared to others. Just sort out your preferences and risk bearing ability first!
Renting out property seems simple enough. Plus, it doesn’t even require any special skills or knowledge
Debt mutual funds
Debt mutual fund schemes are the perfect choice for investors who are more into steady returns than expecting a higher return possibility.
Equity mutual funds are schemes that predominantly on your behalf invest in equity stocks.
Real estate investment trusts (REITs)
REITs are a collection of properties operated by a company (aka a trust) that uses money from investors to buy and develop real estate.
National Pension System (NPS)
National Pension System (NPS) is an investment that is focused on retirement plans and savings.
Certificates of Deposit (CDs)
A certificate of deposit or CD is a financial investment with the least associated risk factors and is offered by banks.
Public Provident Fund (PPF)
The Public Provident Fund is the most acceptable investment. The PPF has a long tenure of 15 years and the interest is tax-free and huge, especially in the later years.
Equity has been able to deliver higher than inflation-adjusted returns compared to all other asset classes.
Summing up, as it has been perfectly said that every coin has two sides. Relating this with the current situation, we can correctly say that each saving source comes with associated research. Every investment option comes with many pros and cons. So, while deciding where you want to invest, all you have to do is sort out your preferences, compare various options and the risk associated and then opt for the right one. It can be difficult to avoid your distractions, especially those which are your favorite and you did not want to compromise for, but just keep in mind for which purpose you are saving and you may end up with the exact potential amount of saving that you were aiming and expecting to reach that goal.
So, this article aimed at acquainting you well with the various methods that you can follow in order to channelize your income into savings, instead of spending them on irrelevant things that may not be even on your shopping list. I hope this made justice to your queries and confusion and you are sorted with your chaos. If you are still left with some questions, we are always here to help you. And we are open for all the suggestions every time. Always remember it is never too late or too early to start something new and learn new things in your life.