Are you spending your entire salary? Here are 10 reasons to help you understand the importance of saving money.
There are two ways of doing that:
- Save more money.
- Make more money.
These are the two most obvious answers.
Let’s dig a little deeper.
Saving money is the ultimate solution to personal finance. However, saving money is no piece of cake. It takes a lot of effort on one’s part to voluntarily put aside money.
Do you end up saving very little as compared to the amount you wanted to save?
Well, this could be because your salary/monthly income gets exhausted in financing your living expenses.
Then, what to do to grow money? Learn the importance of saving money.
Enter: Second Answer.
If you find it impossible to save a significant amount of money, you must strive to make more money.
Also, before proceeding further, I want to clarify one thing: Making money just for the sake of making money is a total waste of time.
Then what am I suggesting?
Saving and investing are the only two habits you’ll need throughout your financial life.
It’s like saving and investing a day keeps the debt away!
Also, people usually tend to think that why to bother about saving money at all? Can’t we just simply make more money?
Yes, you can make more money.
But, you must keep in mind that not everybody has the potential of making more money, not everybody wants to make more money.
However, not everyone can save more.
Therefore, instead of fixating on one of these options, try to choose both of them.
Thoda save, thoda make! (Save some, make some!)
Also, for making financial planning easier, try setting a particular amount as your goal.
This way, you will know that you will achieve that goal faster if you start saving more and start making more.
Okay, so now let’s explore saving money’s importance in detail.
Importance of Saving
Saving money is the first rule of personal finance. However, it is easier said than done.
Saving requires a lot of patience and dedication. It often happens that people tend to get tempted to buy high-end things and end up with absolutely no savings. Well, this is the wrong way of proceeding in the financial race. You must consider finance and savings to be like a marathon rather than a sprint.
But the bright side to saving is that once you develop its habit and start seeing its benefits, you’ll start loving it.
I know it’s hard to believe but saving is an addiction: once you start doing it, you cannot stop it!
So, the question is “How to save more money?”
- 1 1. Kill your debt
- 2 2.Location:
- 3 Live where you want your life to revolve.
- 4 3. Walk Everywhere:
- 5 4.Follow a Budget:
- 6 5. Save money through Frugal Tips
- 7 6. Try not to Overpay for Insurance:
- 8 7. Avoid paying for Gym:
- 9 8. Try to curb your Spending on Grocery Items:
- 10 9. Learn how to not pay *extra* taxes
- 11 11. Make your Real Goal Happiness:
1. Kill your debt
This is one of the most important things to do. Until and unless you are free of toxic debt.
Now, what do I mean by toxic debt?
Well, toxic debt is something you take upon yourself to buy something which does not produce money. For instance, the credit card loan you take to buy heaps of clothes during the ‘sale season’ is toxic debt.
Picking the correct location for living is important. More important than you can perhaps imagine.
This is because it can make or break you!
Live where you want your life to revolve.
This automatically implies that you must live where your work and market are walking distances from your place.
Hence, your living location can have a significant impact on your finances.
3. Walk Everywhere:
Not only is this the best habit you can probably inculcate in your daily routine, walking can help you in other ways as well.
Walking has been constantly linked with higher levels of creativity. Your creativity instinct shots up when you start walking.
Studies have demonstrated that walking for even 30 minutes a day is the ideal and perhaps the only medicine your body demands.
So, you save on two fronts: health bills and transport bills!
As soon as your salary gets credited to your account, make it a point to first pay off all your bills and then set aside a designated amount for your savings.
There is an app for pretty much everything, and budgeting is no exemption.
You can get the Bachat app that will help you make automatic savings and what’s more, it will even reward you for your savings.
The Bachat app transfers a fixed proportion of your monthly income to a particular savings account for you.
5. Save money through Frugal Tips
Want to save a loooot of cash without compromising your living standard?
Well, saving cash and cutting your expenses does not necessarily mean compromising or degrading your lifestyle.
You can adopt extremely easy-to-follow approaches and save a hefty amount of sum monthly.
In case you’re living on a low-to-average monthly paycheck or you want to save up for an upcoming event, you must start revering this guide: 8 Best Frugal Living Tips In India
6. Try not to Overpay for Insurance:
Insurance can be an expensive affair. But, make sure that you don’t overpay for it.
7. Avoid paying for Gym:
Losing weight without losing money is possible. You just have to set your mind to it.
Plan your diet in a way which you can honestly follow and you’ll be golden, rather fit, in no time.
Also, avoid undergoing extreme dieting to lose weight faster. Remember, if you lose weight drastically, you stand to gain that weight back even more quickly.
Therefore, go slow and steady.
8. Try to curb your Spending on Grocery Items:
Groceries and other related items can surprisingly prove to be expensive if you do not resort to money-saving tips.
So here I am, with a list of money saving tips that will help you save thousands of rupees monthly:
- Make a Shopping List before Leaving the House
- Grow your Own Vegetables
- Try not to buy only Branded Products
- Avoid going for Grocery shopping when Hungry
- Purchase in Bulk Quantities
- Shop Online
9. Learn how to not pay *extra* taxes
10. Go for Minimalism:
It enhances your brain and way of life and, it saves a lottt of money!
Aim to work towards a happy state of mind. Save till you achieve a happy state of mind.
This is it for today!
I hope you have discovered the significance of saving money.