What will happen after your retirement? What about your lifestyle post-retirement?
I am talking about Money. That’s the one thing we needed during our whole life.
So, what is your plan for savings for your retirement life?
Don’t tell me that you have not thought about it yet. You must think about you and your family’s future.
Okay. Let me ask you one more question. Do you have emergency funds?
Emergency funds can be handy during the crisis period, especially crisis like Covid-19.
You just can not spend all your monthly income. You must save something from your monthly income.
Money Saved = Money Earned. If it is done in a proper way. Don’t worry, I will also explain in detail about it.
There is one famous quote from Warren Buffett, “Do not save what is left after spending, instead spend what is left after saving.”
If you are going to say me that I don’t have money to save at the end of the month due to expenses or I don’t know how to save money, then read my money-saving tips given below.
How To Save Money In India [2020 Updated]
There are lots of ways by which you can save money. But fact is that not every rules applicable on everyone. Here I will explain about these money saving tips which will be applicable for most of people. So read it carefully and see which tips are applicable on you.
Master The 30 Day Rule
The 30 Day Rule is a simple method that helps you to control your impulse spending.
Before buying anything like product or service, tell yourself that you will think about the product or service for the next 30 days.
Then note down the product or service that you want to buy on a piece of paper or notebook or mobile or laptop or a place where you can see it daily for the next 30 days.
Now for the next 30 days, think whether you really want that item or not? But don’t buy it in these 30 days.
At the end of the month, if you really think that you need that product or service, then buy it. But you have realized that it is not important anymore, then leave it, You will save money here.
Let me tell you my own example: When OnePlus 6T was launched, I was thinking of buying it. Its price was Rs.37,000. But I didn’t buy it straight away. I waited for some time and later on, I canceled my decision.
Now OnePlus 7 launched, I thought that I would buy it this time because its price was just Rs.33,000 and I was getting a successor of OnePlus 6T. Still, I waited for some time to think about it. Later on, I realized that this is not the phone that I want to buy.
After a while, Samsung launched Galaxy M30s, a mid-range Smartphone with excellent features like 6000 mAh Battery, Super AMOLED Display, 48 MP Rear Camera with 3 Camera Setup, etc. And Finally, I bought the Samsung Galaxy M30s because this was the phone that I needed. I mean, I needed more battery and better display. I bought it at Rs.14,000 and saved around Rs.19,000.
This thing happens with all. Waiting before buying anything allows you to think about that particular product or service and allows you to check your needs as well. In this way, you can save a good amount of money.
Sign Up For Every Free Customer Reward Program You Can
Now, this is something that is undervalued. Don’t forget to sign up for the free Customer Reward Program wherever you find it, online or offline.
You will find malls in your city, offering a reward program. When it comes to online, there are plenty of Reward Programs available. Especially the Credit Card Rewards Program.
Basically you earn points on purchases at offline stores or online websites. When you reach a specific amount of points, you can redeem it for cash back or other benefits.
Use Credit Card Wisely
Credit Card can be a great way of saving money. But overuse of Credit Cards just for the sake of that 50 Days Credit Limit can harm your finances.
Better is drop most of the credit cards at home. Keep only important credit cards in your wallet. It might help you to reduce your overspending.
Cancel Unnecessary Subscriptions
Cancel all unnecessary subscriptions like Magazines. If you have a smartphone, then there are multiple apps available in PlayStore, which provides daily news. There are also other apps in PlayStore which does the job of Magazines.
So no need for Physical Magazine Subscription.
Master the 10-Second Rule
This is a small hack I would say. But it still works and helps to save money. So basically whenever you are buying something, especially from online, pause for 10-Seconds and think about the product and ask yourself that Do I really need this product right now? Can I skip it?
And if you don’t find a proper answer, skip the product. Or if you really think that you actually need it, then buy it.
Get serious about your budget – 50:30:20 Rule.
This is one of my favorite methods of Saving Money. Elizabeth Warren introduced the 50:30:20 Rule in her book – All Your Worth: The Ultimate Lifetime Money Plan.
Here it is the meaning of the 50:30:20 Rule. You have to divide your monthly income into 3 parts. 50%, 30% and 20%. Let me explain to you in detail about The 50:30:20 Rule.
- Mandatory Expenses (50%): This includes Basic Groceries, Utilities, Healthcare, Rent Payments, Childcare, Transportation, etc. Basically these expenses are essential costs that usually happen every month, and you can not cut them out. Like Groceries are must or Transportation for Home to Office.
- Wants (30%): This includes Phone Bills, Internet Bills, Dining Out, Shopping, etc. Basically these expenses are non-essential costs that you could live without it. Like you can cook food at home instead of going out at restaurants.
- Savings (20%): 20% of your monthly income must be saved. Include this on your budget and stick to it. Now, where you should put this 20% is another topic. We will discuss it. But let me give you a short overview of where you should put your 20% of income. You can build Emergency Fund, Retirement Savings, Paying down debts/loans, or you can invest in Equity Stocks or Mutual Funds for Wealth Creation.
Source: Fifty Twenty Thirty
Record Your Expenses
If you are serious about saving money, which you should be, then you should start recording your expenses. This is really important to figure out how much and where you are spending.
Recording your expenses means to keep an account of each and every rupee spent by you, whether it is just a coffee or snacks or household expense or groceries, etc.
Now, as you have recorded all your expenses, all you have to do is to categorize them. Like Groceries, Utilities, Travel & Transportation, Healthcare, Personal Expenses, etc.
You can take the help of Apps and Websites, which allows you to keep the record your expenses.
Find Ways You Can Cut Your Spending
Now you have a clear idea about your expenses, it is time to check whether there is a scope of cutting down the costs or not. I would suggest you cut the costs of non-essentials such as entertainment or dining out or shopping etc.
Like going for dinner once per month instead of going on every Sunday, I have already mentioned a few techniques to cut down the costs of expenses.
Go Through Your Phone Bills
Check your phone bills every month and look for unnecessary services that you are not using and cancel the subscription of these types of services.
So, these are some money-saving tips that I follow to save my money.
I hope you learned something from it. So, what are you waiting for? Go and start saving money. It’s easy, isn’t it?
If you have your own tips by which you save your money, then don’t forget to share it in the comment section below or you can directly share it with us via Contact Us Page. I will add it here.