Nowadays, with never ending expenses and rise in inflation; it has become very difficult to increase your savings. Building up your savings for future doesn’t happen overnight, but creating a plan to start saving can. By starting with consistent, small one step at a time, you can build up your savings fast.
I have complied some of the steps which can increase help to increase savings.
1) Track Your Expenses
If you know where you are spending and how much, it is easier to keep a track of your expenses and make necessary changes.
2) Create And Stick To Your Budget
Once you have tracked your expenses, the next step should be to create a budget and stick to it.
This would include fixed expenses and variable expenses each month.
Fixed expenses would include rent, EMI’S and subscription bills.
Variable expenses can be groceries, vacations, birthdays and anniversaries. You need to keep a track on mostly variable expenses and spend money accordingly.
3) Cut Expenses
One of the most important ways to increase your savings is by cutting expenses.
4) Increase Your Income
If you are already spending bare minimum; then in order to increase your savings; you will need to increase your income.
This would include some side hustle like a part-time job or you may explore your hobbies and interests, things which you are good at. One can go for content writing, graphic designing, data entry work and a lot of freelancing opportunities.
5) Set Saving Goals
These goals may be goals like down payment for a house, car, child’s education or retirement planning and then allocate your funds accordingly.
6) Buy Second-hand Stuff Online
Though some may not agree with this but this really works. Instead of buying everything brand new, you can go for used or hardly used items like TV, mobile, bike, furniture etc.
You can save huge bucks on buying this kind of stuff online.
And with stuff like furniture; you can paint, varnish or change the look with very little expense.
7) Automate Your Savings
In order to increase your savings fast and regularly, automate your savings each month.
8) Buy Quality Product
Sometimes, cheap is more expensive.
In order to save money, we sometimes opt for the cheaper option but it can cost more in the long run due to its maintenance or less shelf life. So you may end up spending more than you would have if you had opted for the more expensive quality product.
9) Contain Money Leaks
Money leaks are little expenses that you may not be taking them too seriously. They are normally so small and taken in such tiny doses that one does not even include them in the budget.
Examples would be that cup of coffee you get most mornings from a cafe or a random day out with your friends.
Money leaks also include bank fees, cable subscriptions, unused gym membership.
These seemingly small expenses slowly eat into your savings account without your knowledge.
How to go about savings?
The way to work around savings is that one sets aside the funds they intend to save the moment you get your hands on your salary. As opposed to waiting until all your expenses are covered so you can save the rest.
Saving is something most of us struggle with but it should be incorporated into our daily lives. It may not seem like it at first, but slowly and gradually they start adding up. In due course, those few coins that you set aside can help you in times of need.
Having a monthly savings plan can significantly improve your financial security. Create a financial cushion, and replace the stress of living paycheck-to-paycheck with the confidence of knowing that you have control of your money.