How to save money even when on a strict budget

Date : 23/11/2021
Read: 4 mins

Find out how you can save more money by following some simple tips.

How to save money even when on a strict budget

Abhijit Banerjee, Nobel Laureate, Economics, says in a lecture - Savings is back borrowing; your future self is borrowing money from your present self for a better future. Savings can help you during financial emergencies, fulfil your future goals, live a more comfortable life, and be free from any kind of financial stress. However, it can also be a bit challenging sometimes. Daily expenses like rent, groceries, electricity, fuel, and more can take up a majority of your paycheck. When you combine this with other non-discretionary expenses, you may hardly be left with much to save. However, some practical and money-saving tips can be your saviour and teach you how to save money at home by doing the bare minimum.

How to save money in India for your long term needs?

Here’s how to save money from salary:

1. Time your purchases

Instead of buying things on an impulse, try to plan your purchases. This eliminates mindless spending and helps you plan your expenses in advance. When you plan your purchases, you can also use low interest rates to your advantage. For instance, home loan rates are low right now because of the pandemic. Planning to buy a house now can help you save money.

2. Try to get stuff for free over spending

There are several deals and discounts offered by various kinds of stores all year long. Taking advantage of saving money quotes like ‘one plus one free’,’ buy one get more free’, etc., can help you lower your overall expenses to a great degree.

3. Do meal prep

The easiest and best way to save money, especially for those who tend to eat out a lot, is to do meal preps. Preparing your meals beforehand saves money and also reduces time and effort.

4. Make mindful purchases

Ascertain what is important and what is not. Sometimes, low prices can be misleading and coerce you to spend more than usual. Instead of going overboard, try to be practical and buy only the necessary items. The money you save can then be contributed to a money-saving plan. In addition to this, see if you can repair something that is broken for a lower price instead of buying a new item.

5. Use your raise smartly

Instead of spending all your bonuses and hikes, use them to invest in the best money-saving plans. There are plenty of investment options in the market. Put aside any additional hike over your regular income for your future needs.

6. Pay attention to your tax refund

Being up to date about what tax benefit you qualify for and can use to reduce your taxes can be a great way to save money every financial year.

7. Do a no-spend challenge

Challenging yourself not to spend money can be a fun way to lower your expenses. You can put the money you save into a savings plan. Try to stick to these challenges for as long as you can to reap the most benefits.

8. Find ways to earn extra money

Apart from the money from your salary, you can also earn from other sources, such as renting a space, dividends from investments, agricultural income, a side hustle, and more. Explore such options.

9. Talk about your struggles and your successes

Sharing your experience with others and learning from them can help you make better decisions. This can be a learning experience and teach you how to save money in a more efficient manner.