Saving is the foundation of strong finances, but many people struggle to get started. With inflation rising at unprecedented rates, saving and investing today have become more important than ever. Learning how to start saving and integrating a disciplined habit today can help you in the long run. Over time, small savings add up to create a sizable amount, which can be invested to create a long-term corpus.
Why should you save money
Saving money is your safety net for unexpected expenses like repairs, medical bills, or even a sudden job loss. Imagine having enough savings to cover these costs without stress. You wouldn't need to rush into a new job just for the pay check or worry about how to pay emergency bills. Your savings give you the freedom to make smart choices, even when things get tough.
Also Read: How to Invest your EPF Savings
How to save money fast
If you wish to build your savings nest quickly but do not know where to begin, consider these tips on how to start saving money:
- Create a budget
Drafting a budget is the first step to start saving money. Start by tallying your income and expenses. Use your bank and credit card statements to assess your expenses across categories. Then, draft a budget to set a guideline for your monthly spending and savings. - Cut spending
Review your expenses carefully to identify areas you can cut back. While fixed expenses like rent and groceries cannot be reduced, you can target non-essential spending to save money fast. For instance, you can reduce spending on dining, movies, shopping, and subscriptions to save more. You can then invest these savings in short-term investment plans with high returns, like fixed deposit, to earn above-average returns without an extensive lock-in period. - Earn more
Increasing your income is one of the easiest ways of saving more quickly. Negotiate for a raise during the annual appraisal season and ensure that your new salary matches the current industry standard for the job role. Alternatively, you can even consider a side hustle like freelancing on your off days. Passive sources of income can also help boost your income. For instance, passive income from renting out your vacant property can be used for savings and investing. - Change your lifestyle habits
Reviewing lifestyle habits can be beneficial for those wondering how to start saving more. Cutting back on expensive habits like smoking, drinking, and food deliveries can help you enhance your savings kitty. - Switch to a better savings account
Find out how much interest your current bank pays on your savings account. Search for high-yield savings accounts online to review the list of banks that offer them. Compare interest rates and shift your funds to a high-yield account to earn more on your savings.
If you are looking for a safe investment option, you can consider fixed deposit. They offer guaranteed returns and a fixed interest rate throughout your investment tenure. - Curb impulse buying
If you are prone to impulse buying, understand your triggers. Avoid visiting shopping malls and retail stores where you may be tempted to make an impulse purchase. Instead, you can shop online and create wishlist online instead of actually purchasing the items to manage your impulse buying tendencies.
Also Read: How to Earn Money from FD
Tips to save money fast
Incorporating these lifestyle changes will help you save more faster:
- Drive less
With petrol prices hovering around Rs. 100 mark every few months, driving less can help you save a fortune on gas. Switching to public transport, walking, and cycling are pocket-friendly and greener alternatives to driving. - Minimise housing costs
If you are a renter, switching to a cheaper apartment can help save on the fixed rent overhead every month. If you are a homeowner with mortgage payments, you can look for home loan refinance options to switch to a lender offering lower interest rates. - Cut recurring expenses
Cancel auto-subscriptions to streaming services and the gym. Renew them on a month-by-month basis after evaluating your expenses for the month. Similarly, opting for cheaper internet and phone plans, limiting food deliveries, etc., can keep your recurring expense ledger in check.
Conclusion
Learning how to start saving money is an indispensable lesson, whether you wish to meet a savings goal or simply create an emergency pool for rainy days. While the tips and strategies mentioned above may take some time and effort, implementing them can help you reach your goals in a disciplined way.
Opening an FD can be a great way to save money faster. Parking your surplus funds in a high-paying FD like the Bajaj Finance FD can help you earn up to 8.65% p.a., which is much higher than savings accounts. Additionally, you can choose from flexible tenures and payment frequencies to tailor your investment as per your investment goals and liquidity needs.
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