In today’s world, it’s all about making a fast buck and spending it just as fast. There may be tons of avenues to earn money, but the young generation is finding it more difficult to control expenses. Every young working member of this society complains that their income is never enough to set aside savings. Is saving really that difficult? Is it the living expenses that have gone up, or has the urge to spend gone up?
Here are my thoughts on some age-old techniques that our parents applied and are still very much relevant when it comes to saving. I will also add a few of my personal ideas that have worked for me when it comes to saving. Despite all the ideas and techniques, the will to control expenses and the wish to save money is the foremost requisite.
Here is my first technique to save money.
- Set up a recurring deposit, so that on the first of every month the bank automatically transfers a portion of the salary to the RD for a year or more. This way, without your intervention you set aside a small amount that will accrue interest. You can set up the amount based on your salary.
- Reduce the number of e-wallets that you use to one or maximum 2. The more you use these wallets, the more you end up spending. They offer you cash back schemes, which only make you spend more. Their cashback schemes are all a trap to make you spend, where you never planned to spend.
- Here is a personal idea of mine. On the 7th of every month, sit down at your system and pay your bills personally. Do not set up auto payment instructions. The idea behind this is, when you sit and pay each bill, you will feel the pinch of seeing your bank balance reduce. It generally scares me enough to control expenses.
- One can always use the traditional saving plans like an insurance plan, PF plan, pension plan, SIPs, Chit funds etc.
- One technique that my mom employs is to maintain a book of accounts to keep track of all expenses. This comes in handy in case of unforeseen or unavoidable expenses. I use the Google sheets on my phone to keep track and I noticed that the expenses are not so unavoidable after all.
- Everytime I receive a bonus, I use the complete bonus amount to buy a gold coin. The amount may be small, the coins may be of different denominations, but in your hour of need you can exchange the gold coins at any jeweller for cash and get the complete exchange rate as of that day.
- This may not be the best idea, but it works for me. I use my procrastinating attitude to postpone shopping trips. I put away the chance to spend for as long as needed until one day, I don’t need that purchase. It works like a charm for me.
Remember, all these methods will work only if you have the will to make them work. Just make up your mind and it’s not so impossible to save some money however small our salary is. All the best in your efforts.
Disclaimer: I do not own any of these images. They are sourced from Google and Pinterest.