How to Plan and Save Big in Life
Ask anyone about what they want to achieve in life; the answer will be riches. How do they make that dream come true?
Ask anyone about what they want to achieve in life; the answer will be riches. How do they make that dream come true? The answer is savings, which in turn, needs planning and few strategies to follow. You may not be successful in the first few attempts. Keep trying, and eventually, you will succeed. It is hard to start the process; however, once the process begins, you will enjoy seeing the money grow. For most of you who want to save big and achieve more significant in life, this article is the door.
Automate Payments to avoid the Late fee
There can be an unintended delay on your part to clear the credit card bill or an insurance premium instalment, as scheduled. However, little do we realise that the late fee charges rob us of many benefits and we also end up paying more than the scheduled payment due. If we acquire this habit for long, then, the accumulated monetary loss due to delayed payment on many accounts, can be enormous.
Still, if you do not make the premium payment on time, your insurance company will charge you a percentage amount of the total premium due, for the revival of the same policy. Don't think it is a no loss, no-gain situation, for if you develop the habit of not making payments in instalments on time, you end up paying more amount than accounting.
A simple solution to this self-compounding problem is the automated payment. By choosing to go the ECS way, you save the time and effort to remember hard.
Preparing household budget requires you to be meticulous and detailed, both. One should ideally be able to map all personal/family expenses in detail against the total household income. It is crucial for you to segment your expenses for your personal reference further.
For example, you should account your day-to-day expenditure. By mapping your everyday expenses as small amount spends on buying groceries, one will not directly save, but at the same time, it makes you more aware of the market or the economic situation on a regular basis. Similarly, if you are paying EMIs or annual premiums, then, you need to clearly mark the months in which your expenditure is likely to be higher. Doing this will make you deliberate on your expenses and account for it, in an organised manner.
ITR into Savings or Invest (Here, we can talk about saving tax and use the keyword naturally)
At the beginning of every year, the first and foremost thought on our mind is- how to save tax? Rather than fretting over the idea at the last minute, one should ideally plan their savings and investment in advance. Also, one should do the tax savings in a sequenced manner, by being more aware of the tax exemption benefits through various saving schemes, such as a health insurance policy, PPF, life insurance policy, and fixed deposits. By choosing to be more aware, you not only benefit by knowing how to save tax but also are better equipped to channelize your savings more fruitfully. Savings are your long-term companions and must give you good returns. Keeping this in mind, you have an option to diversify your savings portfolio and thus, enjoy the benefit of saving tax more rationally.
Make a List While Shopping
Impulsive shopping is a matter of personal choice and given the so many options today; your habit can only go from bad to the worst. For, impulsive shopping is only expected to upset your monthly household budget. So, the personal restriction is crucial. Somewhere a limit must be drawn. It will help you stay focused during shopping and plan for more personally organised shopping schedules.
Save and then Spend (People usually spend and then save)
It is imperative to imbibe the saving habit as a household ritual. Only when you realise the importance of saving, will you be able to plan your spending in an organised and wise manner. Savings are more futuristic than expenditure. Therefore, it is only natural for us to tend to spend more as compared to savings. However, it should be the other way around. One needs to save first and accordingly plan their spending.
We have so far discussed the criticality of saving, and how to achieve your saving goals on an everyday basis. However, even before we begin saving, it is essential to set clear and defined saving goals and list them penny wise, so that you have a relaxed and financially structured life ahead of you. With the required savings on your mind, you correspondingly have the contemporary sensibilities to spend the right way. Don't be late in saving for your future. Your present saving shapes your future.