It is essential to save, not just for a secure future but also to support your expenses. We all seem to know that. The gap between knowing and implementing is what makes the difference. So, you are on which side of the coin? The one who spends first and then emphasises saving, or the one who prioritises savings over expenditure.
Many of us struggle to save more than we want to, and at the end of the month, we think, “I should have saved more.” Don’t worry; we will explore some tips on how to take charge of our expenses. So we can prioritise our savings.
Set a Reminder
They say “Charity begins at home,” but for our benefit, we will rephrase the sentence to read “Savings begins at home.” When it’s your money, don’t hesitate to take charge and battle it out. Set a number, and make sure you save that much at the end of the month. It doesn’t have to be anything fancy, but something logical and achievable. Don’t forget to set reminders, which will remind you throughout the month about your goal.
This might sound like an unimportant task, but it will initiate the habit of saving, and that is what we want in the first place.
Open a Savings Account
This is no rocket science; the first elemental step that you can take towards saving is by opening a savings account. Don’t worry if you don’t want to step out of your comfort zone and visit a bank to open an account.
You can open a bank account online without paying any account maintenance charges. Kotak811 offers a digital zero balance savings account with zero maintenance charges, a complimentary virtual debit card, free digital transactions, and the ability to get an instant credit card with minimum paperwork.
Invest any Extra Money
If you have got a raise at work or some of your old policies have matured, before indulging in a reward, you could invest the amount in fixed deposits or mutual funds. This will ensure growth in the long term rather than short-term happiness.
Be the Early Riser
When it comes to savings and investments, start as soon as possible. You can learn more about how to do it the right way with Kotak 811.
This will take care of your future expenses and goals. Keep aside a small portion of cash and invest it in SIPs or savings accounts.
If you start early, you can easily fuel your short and long-term financial goals. Though it is never too late to save, the benefits of starting early pay off in the long run.
Investment in Tax-Saving Instruments
Individuals can claim a tax rebate of up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act of 1961. So invest wisely. You can save an additional amount of Rs. 50,000 by investing in the National Pension Scheme (NPS). Other investment options include tax-free FDs, PPFs, National Savings Certificates (NSCs), and ELSS funds.
Final thoughts
These tips will definitely help you take charge of your expenses and save better for a rewarding future.