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As a salaried individual, do you often face cash crunch at the end of every month? You may have a high-paying job, but if you are unable to save every month, then it may definitely hamper your financial health very soon.
Savings is the first step towards wealth creation. It helps you build a corpus for investments, realise your financial goals, and financially secure your family in the case of any unfortunate event. Above all, savings help you get peace of mind.
If you know how to save money, you can easily take small steps to ensure saving regularly. On this note, let’s take a look at 6 crucial tips to save money.
Read More: - Organize Your Finances to Save for Future
One of the best ways to save money is to keep track of your income and expenditure right from receiving your first salary. First, classify all your expenses into two categories - fixed and variable. You can further classify your variable expenses into important and avoidable costs.
For example, house rent, basic groceries, etc., can be classified under fixed and essential expenses. On the other hand, electricity bills, water bills, fuel costs for commuting between your home and office, etc., can be classified as variable but essential expenses. Lastly, eating out, weekend travels, etc., can come under variable but avoidable costs.
Make a monthly budget based on your income expenditure. Next, consider trimming your avoidable expenses to make room for more savings, and try to stick to this monthly budget. This can help you get a clear picture of your spending habits and deter you from spending money on unnecessary items.
Moreover, you'll become more efficient in saving money each month by adjusting your budget according to your spending habits.
Segregating your funds into different Savings Accounts can be the best way to save money from your salary. You can use different Savings Accounts to create funds for various short-term goals like buying a car, vacation, etc. You can also create one account only to incur all the monthly expenses and another just to save and invest.
Once you learn how to save money from your salary, investing is the next step. Start building your investment portfolio by regularly investing in different investment avenues like Stocks, Mutual Funds, Government and Non-Government Schemes, etc.
Remember, your goal should be to create a well-balanced and diversified investment portfolio that aligns with your goals and risk appetite.
Opening a Fixed Deposit Account is the best way to save money. It is the safest way to earn assured returns at attractive interest rates. For instance, if you open an AU Regular Fixed Deposit account with us, you can earn high rate of annualized interest depending on the amount deposited in the account and the FD tenure.
In order to save, you need to significantly reduce your online shopping expenses. Always compare prices offered by different shopping websites before making a purchase. Try to avail various offers provided by your bank to get extra discounts during online shopping. For instance, AU Small Finance Bank offers exclusive joining benefits when you open AU Savings Account.
*For Resident Indian Senior Citizens on Fixed Deposits tenure of 24 Months 1 Day to 45 Months, basis 8% interest rate per annum. Terms and Conditions apply. Rates are subject to change at the sole discretion of AU Small Finance Bank.
