Save More While Not Spending Less

Everyone talks about reducing expenses to boost savings. While this is true, it’s easier said than done. Besides, you can cut back on spending only up to a certain limit. Beyond that, you have to find other novel avenues to boost your income. In this article, we discuss a few ways to save more while not spending less.

• Create a passive income stream, change jobs, and automate savings to save more.
• Pay off high-interest debt and invest in high-yield savings accounts to earn better returns on your saved corpus.
• Make sustainable choices, take advantage of cashback and exploit sale offers to save a few extra bucks.

If you’re looking for ways to save more while not spending less, here’s a list of strategies you can implement:
 

Develop passive income streams

When you’ve hit the limit of frugality, try to generate passive income to boost your cash flow. You can generate passive income by opting for a side hustle like walking dogs, pet-sitting, or catering at events. If you have a specialised skill set like writing or graphic design, you can try freelancing work to make some extra cash. Alternatively, you can also generate a passive income stream by monetising hobbies like painting and photography.
 

Pay off debt

While it may seem counterintuitive, paying off debt helps you save more while not spending less. High-interest debts impact your savings in the long run and can quickly spiral out of control. The higher the interest on the debt, the higher your income outflow. Paying off your credit card bills in full every month and sticking to your personal loan EMI schedule are prudent ways to tackle high-interest debt at the earliest. While this will increase your spending in the short run, it will preserve your saving potential in the long run.

Leverage cashback offers and rewards programmes

Another great way to save more while not spending less is to leverage cashback offers and rewards. Credit cards offer rewards and cashback on special categories of spends. For instance, many credit cards offer air miles and lounge access privileges. Redeem these rewards when you’re travelling the next time to save more than you would have spent on flight fairs and lounge access. This way, you get value for the money you're already spending.

Invest in high-yield savings accounts and FDs

One of the best ways to save more while not spending less is to make your money work for you. Invest your saved corpus in high-yield savings accounts that offer higher interest rates than regular savings accounts. Fixed deposit accounts provide even better returns. Open a company FD to earn higher returns. 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.

Get a new job

Another way to save more while not spending less is to pursue better-paying opportunities within your existing career. According to experts, job-hopping every 2-3 years is a good way to boost your income because organisations generally have higher budgets for fresh recruitments than salary hikes. Investing in yourself also works well. Enhancing your qualifications with certificate courses helps boost your credentials, which may allow you to negotiate higher pay.

Automate savings

Automating savings helps you save before you spend. By dedicating a reasonable part of your income to savings every month, you can maintain a disciplined approach. Remember to set auto-debit mandates right around the time your salary gets credited. This way, you can avoid the temptation of unnecessary spending. Implementing this simple strategy can effectively help you save more while not spending less. You can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 7.30% p.a.

Make sustainable choices

Sustainable lifestyle choices can benefit you in a number of ways, including boosting your savings. For instance, replacing regular CFL bulbs with LED ones helps conserve power, reduce utility expenses, and avoid frequent replacement costs. Similarly, opting for carpooling reduces your carbon footprint while saving you petrol costs. Such small, sustainable choices go a long way in helping both the environment and your wallet.

Shop smart

Smart shopping can help you save a ton of money. For instance, if you need to purchase big-ticket items like a laptop, television, or refrigerator, try buying them during the sale season. Set alerts for sale announcements and discount offers to avoid missing out on the best deals. While these savings may seem small, they tend to add up over time.

Declutter and sell things you don’t need

Decluttering is an effective way to save more while not spending less. Check everything - your home, closet, and budget - for things you don’t need any more. You can find a number of online platforms that help sell off pre-loved items like furniture, clothing, and jewellery. Stash the extra cash from such sales into your savings kitty. Similarly, you can check your budget for automated subscriptions that you don’t require. Stop the auto-pay mandates on the same to save a few extra bucks every month.