How Saving Money Can Transform You Financially
Saving money needs a simple yet planned approached. If you are having cash shortages often, then it is high time that you need to start saving and plan your finances. Managing your personal finance is the first step you take towards a financially secured future.
As a woman of this generation who is financially independent and wants to live your life on your own terms, you need to take every financial decision with proper planning.
Here are seven tips for you with which you can initiate your savings and take a step towards a secure future.
Start with a Piggy Bank
It is a myth that you need a lot of money to start saving. For starting saving, you can start with a little amount as well. If saving daily is a problem for you and maintaining a bank account, for now, is becoming a headache, start saving with a piggy bank.
It might sound childish, but if you daily save in your piggy bank, you can accumulate a good amount of money which you can save in the bank later. Your small daily savings can build a significant corpus which can be used in the financial crisis as well.
For women, various banks are now providing different savings account specially designed to cater to the needs of the women. There are different interest schemes which you can opt for. Opening a savings account can be the first big steps towards managing your personal finances.You can save daily in the piggy bank and at the month end you can transfer all the savings in the savings bank account.
If you are in a salaried job, keep aside a portion of your salary and put it in the savings account. It will be better if your savings account does not have a debit card, it can cut down unnecessary expenses.
Cut Down Expenses Which Are Not Necessary
The best way to cut down expenses is to prepare a proper budget for a month and also a small/short budget for a week or so.
This way if you are making any unnecessary expenses, you can instantly check with your budget and decide whether it is important or not. In preparation of the budget, you need to prioritize your expenses.
In your budget, keep the savings account on top, first deposit the amount you want to save in a month and then in the remaining amount, you have to plan your expenses. If you plan expenses first, you would not be able to save much.
Clear All Your Bills on Time
There must be various bills that you need to pay. If you are staying alone, there must be rent, electricity bills, water, food and many other expenses like an insurance premium, college or education fees of yours or your child’s that you need to take care of. If you clear all the bills on time, then you do not have to pay interest or penalty charges on any delay of bills.
Always Use a Debit Card and Avoid Credit Card
Credit card is really beneficial, but if you are planning to save, then it is better to avoid the usage of a credit card for some time. It is because, when you pay with your credit card, you do not see how much amount it has it in and you unintentionally often incur expenses that you do not need to.
A debit card, on the other hand, can be a good choice as it has a limited amount in it and you have to keep your expenses within that limit. Moreover, credit card usage attracts interest charges which are an extra expense on your expense. To curtain expenses, this is why it is better to use a debit card instead of credit card.
Go For Do it Yourself Strategy
There are a lot of things in regular life that you can do for yourself, but you do not. For example, if you are staying alone, and have a cozy apartment, you can clean it by yourself daily or in the weekends.
There is no need to keep a maid for cleaning or washing clothes. If you are planning to order food online, think twice, and try to prepare by yourself for a few days, then it will become a habit, and you won’t feel uncomfortable as well. These small things can help in your saving a lot.
Use Coupons and Compare Prices
You must have done this, haven’t you? There are a lot of sites which offers coupons for different kinds of stuff ranging from dining at a restaurant to having a haircut. Use those coupons and help yourself save a significant amount of money. These coupons come at a discounted price, and you can also compare different sites and coupons for use.
Saving is a habit which you have to practice, and it starts with a simple step that is planning and then execution. You do not need to be a financial planner to plan your personal finances, just simple planning and a little bit of dedication that’s all you need.