How much money do you make every month? I know that is not the question I should be asking anyone but I can help you on how to save money that you already make and become super-rich in the near future. Here I am with 10 tips on how to save money and become super-rich.
Yes, it’s possible, you can become super-rich in a very short span of time if you are ready to take a few steps now. I simply believe that Money Saved is Money Earned but people feel its quite difficult to save money. Well, it’s not. First things first, can you answer this question? Are you ready to save money now and become a millionaire in the future? Comment down with Yes or No and I will reply to you with an exact plan for you.
You know how important savings are for your future! It’s like you stuck in a serious problem and nobody is ready to lend you even a single penny. What would you do now? You can take the help of your savings here but you need to make some savings first, right?
But if you are looking to make money online then here are 50 Powerful Ways to Make Money Online in 2019.
So, here is how to save money with 10 simple tips and are prepared for the future.
How to Save Money – 10 Simple Tips
I am not trying to be a philosopher here but let me make you understand with one simple example. Let’s suppose you start saving just Rs 50 a day. Can you do that? I am sure you can save Rs 50 a day and if you do that it would multiply to Rs 1500 a month. It feels a bit hypothetical but trust me if you do that you will be ultra-rich one day. All you have to do is invest this money into some mutual funds.
But, let me actually help you with how to save money with these 10 simple tips.
1. Use a Credit Card
This is a very debatable topic now but you already know the benefits of the credit card. Well, I have already posted a blog on 8 Benefits of a Credit Card use and you should check it out. To be honest you should not use a credit card until and unless you need it but you can save a lot of money with a credit card.
Tell me one source which gives you an interest-free loan? Yes, it’s a credit card where you can get an interest free loan for at least a month. So, why not utilize this and save a lot of money. Suppose you are in urgent need of money what would you do? An average person would go for a personal loan. But there you will have to pay interest. So, instead, you can go for a credit card.
If you use a credit card with proper discipline you can save the interest amount. But, you will have to be careful as if you default any payment you may incur extra charges and penalties too along with the high rate of interest. This way you are saving a lot of money enjoying the benefits of credit card too.
2. Do Tax Planning
I have already posted an article on how to save income tax in India without making any investment but here I am again talking about tax planning. It is like planning to pay minimum taxes by showing your whole income. Yes, if you study the Income Tax Law totally you will understand the exemptions and deductions that Government itself allows you to save taxes.
I am not asking you to do tax evasion but all you have to do is do some planning. There are multiple investments and expenditures in Section 80C that give you deductions up to Rs 150,000. You can completely reduce this amount from your total income by showing some Insurance policies etc.
You can take advantage of House Rent Allowance or Home Loan, Education loan, etc. and easily save a lot of money instead of paying taxes in excess.
3. Invest half of your Earnings
I have this habit of saving half of my earnings. Yes, I am lying here because sometimes I save more than that and sometimes even I fail to do it. But, it’s okay! The whole point is that you should always follow this principle of saving. Whenever you receive a payment make sure that you are saving a portion of it.
And, when you keep an amount aside you should invest it right away. You can go for an RD Account in any bank but the best way that I would recommend is to go with Mutual Fund. There are plenty of apps to invest in Mutual Funds which you can use. I personally use this app called Groww to invest in Mutual Funds. Earlier I used to do it with my bank but now it’s quite easy with this app so I shifted to it.
But, the point is that if you start saving a portion of your earnings you will make a lot of money in a few years. And, why not do it? My Economics professor used to say that every person must save 25% of his salary every month. So, make it a habit and you will thank me for this wonderful idea.
4. Don’t use a Credit Card
I know I am contradicting my own point but let’s face it that using a credit card is not a good decision. However, if you are a disciplined person who follows all the rules then point number one is the thing you should do. But, the major problem with credit cards is the high rate of interest.
And, above all that the biggest problem is of temptation. What happens is when you have money in the form of a credit card you tend to buy unnecessary things. If you keep on buying things that you are not at all in need of you are just wasting your money. My father never uses a Debit card just because of this simple reason of temptation.
It’s true that humans like to do shopping and when they have a lot of money they just do some unwanted shopping. Let’s accept that you and I are not an exception. So, instead of getting those 8 benefits that I mentioned in my earlier article, if you don’t use it you will see a lot of money. This is how to save money by not using the credit card.
5. Wait for the right time
Patience is one of the things that not too many people have. But, trust me if you keep some patience you will love the fruit of it. And, I am talking about the wait for the right time to do shopping. Yes, I wait for some festive sales to come on Amazon and Flipkart.
You may not believe this but almost every month these e-commerce sites run some sort of sales. If you wait for this you will not only save a lot of money but get some exciting deals. Every time a festival comes around, these sites start advertising such deals. So, next time you want to buy a new phone please wait for a festive sale and then buy it.
You will obviously have to keep some patience but you will some money by just waiting for the right time. This rule also applies to your offline clothing shopping which should do in the rainy season. Because after rain gets over in India, there comes a fresh stock for upcoming festivals and every shopkeeper wants to clear their previous stock at this time.
6. Start Cooking your Food
If you are already cooking your own food, Congrats! you are already saving a lot of money. But there are a lot of people who are spending a lot of money on outside food and then asking how to save money?
This is how to save money by cooking your own food and saving money. Yes, you will not only eat healthy food but save some money too. If you are continuously eating outside you are risking your life by inviting deadly diseases. And, it’s not coming for free. Most of the people love to eat fast food from Dominos, Mcdonalds, etc. But, do you know that these restaurants use heavy pesticides to keep their food f4sh. And, you are eating it.
However, I am not asking you to completely stop eating outside but you can minimize it and you will the difference in terms of money and your health.
7. Create FD Accounts to Save Money
An FD or Fixed deposit is one way to invest your money but hey I am not asking you to invest which you should. It’s one of the safest ways where you have the least of the risk or zero risks of losing your money.
But, the whole point that I want to say is to save your money. Whenever you receive any big payment and that accumulates in your bank account. It feels good to have a huge bank balance but you also have a temptation to spend. You feel like you are not going to lose your whole money by spending a few bucks. And, you end up making unwanted expenditure.
If you keep ana mount aside and make an FD Account you will forget about that money. And, after some time it will give you some return too. So, why not make an investment and save your extra money side by side.
8. Make Monthly Budget
Most of the people do not make budgets and end up spending their money more than they expect it. But if you make your budget well in advance, you will know what are you going to buy and have a proper idea of your expenditure in advance. This way you will not only save money but also keep track of your spendings.
Failing to Plan is nothing but planning to fail. If you are not making plans for your future this means only one thing that you are going to fail. It is not like plans are always going to work. But, if you already for the case something at least you have one way to look out it.
You can use some free tools like Google Sheets and Google Docs to document your budgets. Always make a budget at the beginning of the month and then eliminate the expenses that you feel are just unnecessary and avoid them.
9. Buy in Bulk & Save Money
You may take it otherwise but its hundred percent true that people buy things in retail quantity. But, imagine if you start buying in bulk won’t you be able to convince for a discount. But, things like Groceries are always required in our house and instead of buying it every week you can buy it once a month. And, if you do that you will save a lot of money.
Most of my neighbors buy their groceries ins mall quantities and almost every week. But, my mom purchases groceries only once a month or in two months. And, she always manages to get it at cheaper rates. Yes, it sounds a bit traditional but its a good habit. But, make sure that you are not buying extra groceries and then deteriorate their quality.
You can apply this principle in almost every aspect of your life. And, trust me if you do it once not only you will save on travel and carriage charges but also get extra discounts. And, you should always bargain for every purchase you do.
10. Stop Imitating Others
One p[roblem with the majority of common Indians is that imitate others a lot. If my neighbor has a car I need to have a car whether I need it or not. And, you have to stop this psychological war. You are just wasting your money on unwanted things.
It’s good for those who have a lot of money and want to maintain their social status but not for people like you and me. And, once you have understood this mental issue you will stop wasting your money. I have seen people taking loans just to buy things that the neighbor has bought.
I can assure you that once you stop buying unwanted things you will start saving a lot of money that you won’t even understand.
How to Invest your Money?
now you know how to save money with these simple tips that anyone can follow. But, once you have money you should invest it to maintain the time value of money. You have to understand the concept of inflation here.
If your money is just there in your locker what happens is it will remain as it is for years to come. But, the rate of inflation keeps on rising. So, if you want your money to be as valuable as it is today in future then you should make some arrangements to increase it. And, the only option you have is to invest it. Here are some interesting Investments listed below.
- Fixed Deposit
- Stock Market
- Mutual Funds
- Private Lending
- Real Estate
- Gold etc.
We will discuss these investment options in the future.
Conclusion on How to Save Money
Now, I am sure that you must be clear about how to save money, aren’t you? The obvious thing is that stop making unnecessary expenses. Buy things that you use only and enjoy a fruitful life with a lot of money for your future.
Make it a habit to have at least some amount saved every month or every week. You can also make your daily savings. What if you start saving 50 rupees a day. It seems a bit crazy but remember this small saving makes a large amount. One way is to have a piggy bank and start storing your daily cash there.
There are plenty of ways to save money only you have to follow them. So, start saving today and be a part of this wave to save because Money Saved is Money Earned.
Tell me “how to save money” from your point of view?