How to Save Money from Your Salary
Saving seems difficult, but it’s not impossible. We bring you some practical ideas to save money from your salary. Try them before you start procrastinating again!
Money is the most significant driving force in our lives. We slog every day to earn some bucks so that our lives are comfortable and happy. Most of us go overboard with our expenditure as soon as the salary gets credited to our bank account. By the end of the month, our wallets are empty as we wait for the next month’s paycheck to be credited to our bank accounts.
Here are some effective steps to transform yourself from being an extravagant squanderer to a wise money manager.
Chalking out your monthly budgets: No matter how much or less your salary be, you could list all the necessary expenses like EMI’s, house-rent, bills, groceries etc. It would help you understand your actual expenses and monthly spending. Accordingly, you could determine the amount to be saved each month.
Set up two bank accounts: To avoid any temptation to overspend, try to transfer your monthly saving directly to a separate savings account as soon as you receive your salary. Since you have done the math, you have a fair idea about your monthly budget, which could be used to run your household.
Keep an eye on your spending: Blind expenses like impulsive shopping at the supermarket, or outings with friends, movie dates etc., are some of the major culprits in your salary deficit. If you want to socialize, do it by all means. But it would help if you stuck to a money plan. Either cut out on your outings or shop less or try a less expensive place to splurge your money. Just be careful with your spending.
Invest: You could invest your money like fixed deposits, mutual funds, SIPs, EPF, pension plans etc. Just be a little smart and do your homework before investing your precious savings. Don’t believe in the random investment ideas of everyone.
Insurance Policy: We recommend you buy a life insurance policy as a long term investment plan. Depending upon your premium, you could get a lump sum after the tenure of your policy. It is also advised to buy a good health insurance plan if your organization is not covering you in their employee benefit plans. It saves a lot of money at the time of health emergencies which could be very expensive.
Whether it is the EMIs for your car loan or house loan, expenses on fuel, meals, etc., it is not easy to save from your meagre salary. However, prudence lies in managing your money smartly and taking steps to keep it safe.