1. We have to Understand our financial situation.

Before we start saving it is important that we need to see what's our financial situation is. We have to follow the smart saving tips for ourselves accordingly and make a saving draft.

  • Analysis of Income And Expenditure - Calculation of income how much we earn and accordingly allocate the income for expenditure.
  • Establish Financial Goals - Over the time we should set some goals that are based on our needs such as saving for vacation, buying a new car, buying a new house, for medical emergency or saving for retirement, or any other future need.

2.  CREATE A BUDGET

 Preparing a budget is the cornerstone of any saving plan which helps us in future.

  • Basics Of Budgeting - The basics of budgeting means start by listing your essential day to day expenses then listing your monthly requirements for daily life for example : monthly grocery, electricity, monthly medicines, monthly EMI if any, credit card bill etc.
  • Types of Budgets – Here we talk about three types of budgets.
  • Zero based Budgets – Amount is not assigned for anything. Leaving  unallocated income amount at the end of month.
  • 50:30:20 – Monthly income is allocated in ratio of 50:30:20. 50% of income goes to fulfilment of monthly needs, 30% of income used for wants and rest of 20% income is saving for future or as an emergency fund.
  • Envelope System – Cash is divided into envelopes like particular part of cash is only used for particular expenses. From this system fund is previously decided for which expenses is incurred. Such expense category providing over spending.

 

3. AVOIDING UNNECESSARY EXPENSES

  • Identifying Redundant Spendings – We need find out what are unnecessary expenses which are not necessary for us and whose absence will not make any significant difference in our life.
  • Practical Tips For Reducing Monthly Expenses – Applying useful tips to reduce your monthly expenses such as availing discounts coupons and offers at multiple shopping.

 

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4. Saving through Smart tricks and Discount Offer

To save money, we should buy goods from the merchant who gives the highest discount on our purchase. To get maximum discounts, we should use the offers available during festivals like new year sale offers, Amazon Sale. Some vendors offer discounts on multiple purchases of groceries and other items.

  • Weekly Meal Planning & Bulk Buying – Buying all the vegetables, fruits and dairy products needed for the week together will help us save money. Buying milk packets in bulk for a week.
  • Availing Discount Offer – Some discounts are offered by the merchant on our grocery purchases that can reduces our bills.

 5. Making An Emergency Fund

Emergency savings come in handy when we face expenses for which we had not thought about beforehand. Those expenses can be anything like for higher education, accident, illness these are few examples of emergency which can happen any time in life.

  • Start investing as soon as possible, no matter how small the investment is.
  • Continuously start investing.