Friends, it is said that even if the richest of the rich does not do savings, then he will definitely become poor one day. Many people who have to face money crunch, they think that they have so many expenses so how can they save money for themselves.
It becomes difficult for them to get out of this Financial Problematic Mindset, so in this content I am going to tell you Top 10 brilliant money saving tips, by using which you can also improve your financial condition.
Savings is very important in terms of your financial security and without Savings your life can be in great danger. So you should think of ways to get out of this kind of mindset. How to earn money and how to spend money is not taught to us in school and college and maybe this is the reason why rich people get richer while poor become more poorer and the entire life of the middle class family goes out to pay the loan installment.
In this article, it has been told about the best money saving plans, using which you can improve your savings further. Many people have used these Money Savings Hacks and they have got good results and hope you will also get good results.
Top 10 Brilliant Money Saving Tips:
Automate Your Savings
Research has proved that whenever you have money, whether it is in your bank account or in your hands, you spend it. So if you want to save money and invest it, then you have to automate those investments. How will this happen, let’s see
For example, do SIPs. Whenever your salary comes, you should open another bank account and do Auto Debit there so that your investment amount is removed from your Main Bank Account.
After this, whatever money is left in your main account, you should spend your entire month in that. If you will rely on Motivation then you will not be able to save money and why to save, to invest!
Avoid Spending Money
In a month, in 15 days or in a week you will try a Non-Spending Day. On that day, you will not spend anything anywhere. Now how it works, let’s see –
1. From this day a Discipline comes. You will be able to understand that not everything is available in life by spending only money.
2. Secondly, on that day you have to live life, correct? And somewhere you have to spend. Therefore, if you do not have permission to spend money on that day, then you should plan on that day.
You will have to plan in advance that this expenditure is going to be incurred by me at this point, so how will I manage it? This Discipline will train you that how to treat your money with respect.
Use UPI Instead of Credit Card
Use UPI instead of Credit Card. There are three main reasons for it –
UPI (Unified Payments Interface)
- The money of UPI is your own.
- UPI service is free everywhere.
- Now as we all know that UPI is linked to our bank account, so when there is no money in your account then you will not spend, which discipline you towards your money.
Credit Card
- The credit card that gives you money is not your own, but it is a debt on you. We think that this money is ours but in the end we will have to pay it, don’t we? And that is not a smart way to do it.
- Whenever you use a credit card, in many places there is a sub charge which can be 1%, 2% or 3%.
- Even if you do not have money, you can pay with credit card and after the end of the period, you have to pay it along with interest.
Use credit cards only if you have 100% money. Using Credit Cards is not actually a bad thing. Three reasons why Credit Cards are actually a good thing-
- Whenever you use a credit card, you pay that amount after 30 to 45 days, that is, someone is giving you interest free loan for 30 to 45 days.
- If the spend of your credit card is too much, then you can earn a little interest by putting the same amount in Debt Mutual Fund, but it will not be much but if there is free money then why not.
- Credit Rating Improvement happens whenever you use a credit card. If you make the payment of the entire month on time, then your credit score will increase.
By using every credit card, you get some free rewards, vouchers and cashback.
Difference between Assets and Liabilities
This tip is the most important of the top 10 brilliant money saving tips. The most important role of saving is only you should know the difference between Assets and Liability and always buy assets. If you want to become rich then you just need to know.
This rule seems very simple but most of the people do not know how important this rule is. Most of the people get entangled in the problems of money just because they do not know what is the difference between Assets and Liabilities. Rich people always collect Assets and Middle Class people collect Liabilities.
And the funny thing is that they feel that they are accumulating assets. We can understand Assets and Liabilities in a very simple language in this way –
Assets are those things that put money in your pocket. The same liabilities are the thing that takes money out of your pocket.
Friends, once you understand the difference between these two, then after that you will continue to try to buy the assets that pay money. This is a very good method, keep doing it and your Assets column will keep getting filled.
Also tried to reduce their liabilities and expenses. With this money will keep coming in your Assets column. Avoid such liabilities or personal things that cost less than you bring home once.
The time you take a new car out of the showroom, its value is reduced by 25% and it is not a true asset. Although some of your friends and family consider it as an asset.
Follow 30 Day Rule
This is a very brilliant psychology hack. This is called 30 Day Rule. Do not buy it whenever you want to buy big things. Stop for 30 days and after 30 days ask yourself that that thing is still necessary for me and Most likely his answer will be No.
With this you, hey sale is on, let’s buy it, stop things like that and instead you buy only those things which you really need. This is your own money, so don’t misuse your money.
Better to Rent than Buy
Do not buy whatever things you use occasionally, but take it on rent. Everything is available on rent these days, expensive clothes are available on rent, vehicles are available on rent and expensive gadgets are available on rent. So if you are not a frequent user then please take it on rent.
This will save you lots of money. For example, if you are fond of photography and whenever you go to a Wildlife Sanctuary or National Park, then you need a lens of 400-500 mm.
Now these lenses are Rs.5-6 Lakh lenses and you hardly go to such places for 5 or 6 days in a year, so don’t ever pay full money for these lenses that means you take them on rent. On rent, you will get those lenses in few thousand only and with this you will be able to use your money smartly and you will also get the product which you want.
Choose your friends carefully.
First of all, know that do not choose friends according to their wealth. Friend rich or poor, the only issue is that you learn from them and you try to learn from them with all your heart.
Search for rich friends, but your eyes should not be on their wealth but on their knowledge. In many cases, such people become your good friends, whereas many times this is not the case, but you will definitely see a difference that
Friends with money always talk about money, it does not mean that they are proud of money. They are just interested in this subject, so you can learn from them and they can learn from you.
Those friends of yours who are stuck in the quagmire of debt, they do not like to talk about investing money in business. In their view, doing so is foolish or dishonest. So you can learn from your poor friends what you should not do.
It has been seen on the basis of experience that your poor friends never come to ask you how you became rich, but they definitely come to you to ask for help about one or both things.
First borrow money and second borrow job. Never listen to poor or scared people because they are scared of life. When it comes to money, especially investing, the sky is always going to fall in their eyes. They can always tell you why something won’t succeed, but they will never tell you how something will succeed.
Developing a Financial Budget
Make a budget for money in life. It is very important to make a budget, people’s money is wasted because they do not even know where their money is being spent.
Budgeting has many principles. You can also follow the 50-30-20 Principle. In this 50% of your maximum income will go towards your needs. This includes everything like your EMIs, Food, Electricity Bill, Water Bill, Your basic clothing. For all these things you will be using 50% of your income.
You will spend 30% on your desires. If you want to buy a phone, want to go on Vocation or want to party then you have to keep all these in this 30% only.
After this, at least 20% you will invest for your future. Through it can do everything you want to do? I do not mean to say that you kill all the desires of your youth and save money for your old age. There is no use of that money in old age.
That’s why you must party today and do as much as you want to do, but plan for the future as well and that can be done only through a budget.
Repay Loans As Soon As Possible
Pay off your loans as fast as you can. Now many people say that there is only 6%, 7% or 8% interest on Education Loan, Home Loan, so why pay it early. They believe that if we invest the same money in the market, then we can earn up to 10%, 12% or 15%.
It may happen, but what you are doing is that you are comparing the tenure of the entire loan and how much your Rate of Interest will be made in that tenure. I am trying to explain to you something different.
Gradually the loan goes more towards the interest and less goes towards repaying the loan you have taken. So if you try to repay your loan in the beginning, then you will be able to pay off your loan really quickly.
Therefore, try to repay your loans as soon as possible because if you do this then you will be able to save your interest while doing your Principle Pay.
Focus On Growing Income
It is a very premium tip. Don’t focus too much on saving your money. Because the reality is that you have to live life and there is always a minimum expenditure for living life.
For example, you have to pay minimum Rent, minimum food will have to be eaten, you have to wear minimum clothes, then every person has to spend a minimum expenditure, so you cannot always cut at expenses. But there is one thing which you can increase as much as you want, that is your income.
If you focus on your income than it can grow far faster than how much you can save money.
Final Words:
If you are in such a Financial Situation in which you do not have much money, then you must save as much money as you can by using these top 10 brilliant money saving tips. This is a smart thing to do. With this, do not keep your main focus on saving money, but keep your main focus on increasing your income.
And it is not necessary that this should be done only through job, you can create multiple side streams like you can invest, you can run a side business, you can do freelancing or you can create a personal brand.
You have to diversify your income by doing anything because you cannot survive with the help of just one job. We end it with a beautiful quote by Warren Buffett –
“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett
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