Be good at Saving, Saving can save YOU.
Save before you spend.
Rich save and invest their money before they spend. By saving money you can accumulate money for investing. By investing you can build wealth.
In this article, you will see how you can save money each month.
Saving money can also help you in a financial emergency or medical bills. You can save and invest in very safe assets like fixed deposits for your child’s education.
You can save money in advance for your extravagant purchases.
Save Money each month
1. Make you Mind
You first make up your mind that you want to save money. If you are not ready to save money then you can not save money at all.
The first step always begins with yourself. Be ready to save.
2. Set a goal
How much do you want to save? What are you saving for? Do you have anything to buy? Or do you have to make an investment?
Decide why you want to save first. Then only plan your savings.
There can be many different sets of goals one can have. Define your purpose of saving. If you have a definite goal to save money then only you will save consistently.
Saving money each month: One line answer
Make it Automatic
3. Open a recurring account with a bank
Money is best saved when it is automatic.
Make your saving process automatic. Let your bank do it for you.
Open Recurring deposit or simply RD account with your bank. Opening an RD account is very simple. You can open a recurring account with your existing bank account. Chose your period for depositing money.
I think every salaried person should have RD open with their bank. It helps you save much more money. After this, you won’t feel like saving money.
4. Open a Fix Deposit account
If you have a lump sum amount saved. You can prevent it from spending. You can open a Fix deposit account with your bank. Your bank will fix this money in your account and only give it after the completion of its maturity period.
You will also get some interest on your savings in FIx deposit. In India, you usually get 6-8 percent in Fix deposit accounts.
5. Hide some money in your home
You can hide money under your mattress. In earlier days people were good at hiding money.
Wifes save money by hiding from their husbands. Mother saves money from father.
Children also save money in their piggy bank.
You can use these tricks now. Buy a piggy bank and start putting extra money into it.
6. Create a budget and stick to your budget
Start recording your income and expenses. Keep a record of your every month’s expenses.
Every time you go to market. Keep bills with you. Note down your purchases in a separate notebook.
At the end of each month evaluate your expenses. If it is more than what you planned to spend. Then you can reduce expenses next month.
Is saving necessary for everyone?
Yes, saving is important for everyone. Saving helps you to create an initial investment for any of your big purchases. It can also be your initial capital for your investment.
The money you save and invest will work for you. Your little money keeps on compounding. And your small sums of money will grow over time.
Saving and investing can make you financially free. Once you become financially free you will be able to do what you want to do in life. Here you can learn about investing.
While you set aside money for saving. Put a small portion of that savings into an investment account. You can make safe investments in bonds, mutual funds. You can also choose the safest option: Fix Deposit.
Make your own decision, after all, it’s your money. No one will manage your money better than you.
Start saving money each month. You can easily save money each month by putting it on automatic mode. You can automate your saving. And it is the easiest and disciplined method to save money each month.
Happy saving. Save More to Grow More.