A recent report from HSBC titled ‘Future of Retirement: Bridging the Gap’ revealed that only 33% of respondents worldwide are barely keeping any chunk aside for their post-retirement life. In order to have a sound financial status, you have to be disciplined. For starters, you should first get into the mindset of saving money and work towards the same. One the most difficult parts of saving money is taking the first step towards it. As you start earning, saving and managing money becomes overwhelming, however, with right approach and perseverance, you can save money.
Let’s take a look at some of the simple ways in which you can start saving money for a relaxed future.
1. Create A Budget & Stick To It
First things first, it is important to create a budget as it helps you get a clear understanding of your monthly expenses. Budgeting will not only limit your funds for unnecessary expenditures but also enable you to consider other options such as boosting your retirement savings or emergency funds. Once you have created a monthly budget, make a list and track your expenses as per priority. You should also decide on the type of budget you want to make as it may vary from person to person.
2. Understand Your Financial Goals
With a constant increase in the cost of living in almost all sectors ranging from medical to transportation, it is only necessary to start having a decent idea of your financial goals. You should start with short-term goals following which you can gradually move on to long-term goals. Achieving short-term goals will motivate you and give you the boost to save even further. Make sure you take measures to avoid hampering your long-term savings.
3. Use Apps To Track Expenses
In today’s digital age, don’t shy away from using technology such as finance mobile apps. They not only make it easier for you to keep a tab on your expenses but also help you towards reaching your financial goals. There are several finance management apps out there and one such app is the BankBazaar app. The app boasts of a number of features such as finance 101, daily gold and silver rates, among others. One of the best features of the app is its personal finance feature that helps you manage your money in a seamless way. The BankBazaar App allows you to →
- Conduct bank balance check on multiple bank accounts in one place.
- Keep a track of all your transactions (income as well as expenses), no manual actions needed.
- View a graphical representation of your monthly spends and helps you tweak your spending habits.
- Check your credit card limit and total outstanding amount
- Keep a track of your credit card transactions
- Get reminders regarding your payment due date and EMIs.
4. Get Credit Cards As Per Your Needs
There are hundreds of credit cards available in the market today and each of them offers different benefits. Instead of going for a generic credit card, make sure to find a credit card that is suitable for your needs. For example, if you travel frequently, opt for credit cards that offers miles and lounge access. Moreover, if you are a movie lover, you can look out for credit cards that offer discounts and rewards for movies. In the end, it is important that you don’t end up paying hefty fees for a credit card that is not suitable for you. Make sure you keep a tab on your credit card usage and monitor it from time-to-time.
5. Control Impulses To Shop
Only creating a budget is not enough, as you have to stick to it in order to reach your financial goals. Certain discipline must be followed in order to adhere to a budget. You need to build a habit of consistent saving and try and keep a definite amount aside for your savings. Make an effort to not spend your money on things that are not important. You need to get out of your comfort zone if you want to save more money. Avoid making impulsive decisions regarding buying things as it may burn a hole in your pocket and also disrupt your monthly financial planning. It is extremely important to get your priorities straight before deciding to shop for something expensive. Always make conscious efforts to weigh your spending decisions and try to get overwhelmed by the urge to spend. It is equally important to learn from your mistakes and modify them as you move closer to your budget.
6. Pay Bills/EMIs On Time & Avoid Late Fees
Most of the people end up paying a huge chunk over late payment of monthly utility bills like telephone and electricity as well as EMIs. The payment of penalties for multiple bills can mess with your monthly budget. One of the easy ways to avoid paying late fees is to give standing instructions to your savings account. This will save you from the additional pressure of remembering and organising your payments.
7. Go Beyond Saving & Start Investing
You must understand that saving is just the first step toward a safe and secure post-retirement life. Once you have mastered the act of saving, you have to go ahead and invest the money in order for it to multiply over the time. One of the easiest ways to invest your money is to put aside a dedicated chunk of money into a savings account every month and use that money to create a fixed deposit. A fixed deposit is the easiest and safest form of investment that offers guaranteed returns. You can even try to invest in mutual funds and stock markets going forward.
It must be noted that wealth creation is a gradual process and it can’t be done overnight. You have to be patient in order to see a hefty bank balance.