7 Easy Tips to Boost Your Savings

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It is not how much you earn, but how much you save that decides your wealth. Sometimes all we need is the courage to take that first step towards investing money.

Here are few simple steps that you can take to start saving better.

Save some of What You Earn

It is always a good idea to save what you earn. As Warren Buffet says, “Don’t save what is left after spending, spend what is left after saving”

One of the good ways to develop this habit is to note down how much you spend for at least a month or two. Now go through this list and ask yourself where you can cut down on your expenses so that you can start saving money.

In short, it is always a great idea to save at least 10% of what you earn.

Let the Money Work for You

Yeah, you read that right. You can let the money work for you. By choosing the right investment option, you can always grow financially.

When this starts happening, you will have freedom to do what you find most interesting. Remember, getting your own time for yourself is the biggest reward of savings and investment.

Evaluate different financial options. Feel free to approach financial advisors, who may help you with this process.

Save some of What You Earn

It is always a good idea to save what you earn. As Warren Buffet says, “Don’t save what is left after spending, spend what is left after saving”

One of the good ways to develop this habit is to note down how much you spend for at least a month or two. Now go through this list and ask yourself where you can cut down on your expenses so that you can start saving money.

In short, it is always a great idea to save at least 10% of what you earn.

Let the Money Work for You

Yeah, you read that right. You can let the money work for you. By choosing the right investment option, you can always grow financially.

When this starts happening, you will have freedom to do what you find most interesting. Remember, getting your own time for yourself is the biggest reward of savings and investment.

Evaluate different financial options. Feel free to approach financial advisors, who may help you with this process.

Say a Big NO to Loans

One of the major differences between the rich and the poor is that the rich earn on interest, the poor pay interest.

Of course, it is natural for us to wish to buy the latest phone or that classy bike or an apartment.

These are definitely possible without loan, when you do this one thing. Here it comes... “PLANNING” Yes! Set your own financial goals and start saving for it.

It is always a good idea to think on paper. Take a piece of paper and note down a list of things that you wish to buy. Among the list of things, circle two things that you like the most.

With these two things written down, plan out exactly in detail, how you are going to save money.

Spend Some time in Self Improvement

You know one of the biggest secrets of successful people is that they invest in themselves. This is what it means. They spend at least an hour reading a book or working on their skills.

Now if you’re thinking how this is going to help you, consider this example. Say your work needs you to develop the skillset of negotiation. Initially, say as a trainee you’re paid a stipend of 5,000 bucks.

If you start reading books and practice the skills of negotiation for about three months, you would have definitely picked up and improved with that skill. This lets you charge more for the service you offer.

In fact, people like Warren Buffett and Bill Gates spend significant amount of time reading different books to expand their knowledge and improve themselves.

Have a Diverse Portfolio

As the old saying goes, “Do not put all the eggs in one basket” This holds good even in financial investments. It is always good to have a diverse portfolio.

It is important that you bifurcate long term versus short term investment. And, decide accordingly where you would wish to invest your money.

It is always good to start with the 3 and a 5-year plan for this and then slowly extend it to a decade or two (long term).

Avoid Ponzi Schemes

One of the most important principles of saving money is that there is no get rich quick method.

If there are any schemes that promise you of doubling your money in a week or make you rich overnight, HELLO; it is a big warning signal to avoid.

In financial terms, these are called Ponzi schemes. Try and avoid them at all costs. Always remember to value your hard-earned money.

Have/Take Health Insurance

Emergencies are something that cannot be predicted or avoided. That’s where insurance comes into play, as a savior.

As we have seen through this pandemic, our emergency fund or insurance – along with good medical treatment – is what has been crucial in helping us cope with this tough time.

Conclusion

Remember a penny saved is a penny earned. Also, each individual may have a different savings and investment strategy. Analyse and understand which strategy works best for you.

Take sufficient time to decide and structure your investment scheme. You could also approach financial advisors to get some insights. Only once you’re convinced, do act upon the plan.

If you need some insights on understanding what works best for you, we’d be more than happy to help you through the process.

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