If I ask you, do you want to save more money without earning more money, the answer would be yes because everyone likes to have more money. Saving money has it benefit, we can use that money whenever it is required or for our future goals. As a Salaried Person, the inflow or income is limited and thus saving money from that inflow is very much required for our future goals. So in today's Video we will go through 5 simple yet effective tricks to increase your savings. To be honest, I have used a lot if technique to save money but these 5 are actually the ones which works. It has worked for me, and I am sure this will work for you too.
Number 1: 30 Day Rule
The 30 Day Rule says that if we are thinking of purchasing any non-essential items then wait for 30 days. This is because it will give us an adequate amount of time to think if we really require that item. This is essential to remove any instant gratification. With so many advertisements, social media and other platforms we tend to buy items through instant gratification and then soon find out that it might be a bad purchase. With the 30-day rule we are actually eliminating the risks of impulse buying and thus we will buy only those items which are truly required. Do note here that we should identify what we consider to be a non-essential purchase. Non Essential purchase is actually our wants and not our needs. For example, whenever the purchase of car crossed my mind, I wait for 30 days to think whether I want the car or not. Mostly the answer is no, because in Bangalore the Ola and Uber works really well and buying is not required as of now. Whenever the purchase of car, passes the 30 day rule, I will buy it until then I am happy with no car. So once we identified what types of products and what types of purchases would fall into non-essential items then we will be clear on when exactly you need to be utilizing this rule .
Number 2: Paying in Time
Whenever we are trying to purchase any item, we should calculate the amount of time we are willing to trade for that item. For human beings specially salaried employees time is our most valuable assets and thus we should calculate the amount of time we have to work for purchasing that item. For example, if I earn Rs 10K a day and I am thinking of buying an item worth Rs 50K that means I have work 5 days for that item. If I have to pay in time, then for that items I have to work that many days or hours and then we have to see if that items is worth the amount of time or not. For every purchase I try to mentally check the amount of time required to pay and thus it gives me the idea if it is worth it or not.
Number 3: Pay Yourself First
This actually means we are paying ourself an amount of money after we receive our income. That money can be used to save or invest for your future goals. When we receive our income, we have to spend that money on various things, like paying bills, buying groceries and at the end of the month we don't have money left for ourselves. So paying yourself first is a mean to actually saving for ourself before spending it on anything else. Every month, on the day I receive I get money, I invest along with that I pay for myself. I use that money for my short term goals or long terms goals depending on the goals I am saving. In this way I am working for myself first and then working for other things. I use an sperate bank account for it.
Number 4: Practice Gratitude
Practicing gratitude can help us save money by shifting our focus from what we lack to what we already have. I appreciate what I have in my life as well as I am content in my life for what I have. Actually when we are grateful for what we have in our life, we are less likely to feel the need to buy more things. I know we all want to have latest gadgets, going for vacation more often but think about the gadgets we already have as well as the vacation we have already went too, this will help us to appreciate the things which we already have. What has worked for me is to spend 5 minutes every day to appreciate the things which I already have. Practicing gratitude can enhance our overall mental well-being because we shift our focus from material possessions to experiences and relationships.
Number 5: Living Within Our Means
This is no brainer, when we live within our means we will be able to save more money. It actually ensure that our expenses are aligned with our income and thus we can also save money for our goals in or life. This will help us to avoid the debt, because if we constantly spend more money than we earn then we have to rely on the credit and thus we have to pay those high-interest rates that comes with it. By actually living within our means we can create a sustainable lifestyle, it helps us to prevent overspending. Along with that it helps us to build savings.
These 5 are small and effective tips to save some money. We can start these tips from today itself. I know most of us know these tips and might have incorporate some of them in our day to day life. And if we continue doing it then we can save more money from our income.
