10 Tips to Scale Up Your Monthly Savings
The Covid-19 pandemic has left most of us locked down inside four walls of our houses, unsure of when things are going to get back to normal. The crash in the market has broken investors’ trust and has left people clueless about how they should manage their finances. If you are willing to make good use of the excess money that you have and avoid wastage of financial resources but do not know how to go about it, then you’re in luck.
Here are 10 tips that will not only help you save money but will also manage it in a smarter way.
1. Customise 50-30-20 Rule
A smart spender goes by the 50-30-20 rule. Spend 50 per cent of your income on essentials such as groceries, fuel, rent, and bills; 30 per cent on leisure; and save the rest 20 per cent. Since there is lockdown in most parts of the country due to Covid, our expenditure on leisure has been reduced. We can keep 35 per cent of our leisure money for emergency use or invest it in equity.
2. Avoid Buying Food from Outside
The pandemic and the consequently restricted life have given us ample time in hand to pamper our taste buds with cuisine experiments at home. Instead of ordering expensive food from outside, you can make the same food at home at half the cost.
3. Subscribe to One OTT Platform a Month
It would save you a fortune if you stick to subscribing to just one OTT platform a month. By subscribing to 3-4 platforms at once, you end up spending a lot of money. Moreover, in such a scenario, you are unable to make the most of any OTT platform. It is worth buying one a month and finish watching all the movies and shows you wish to see before going for another one.
4. Make Your Own Kitchen Garden
A penny saved is a penny earned. By growing herbs and other edibles such as lemongrass, coriander, cilantro, mint, tulsi, celery, fenugreek and spinach in your small little kitchen garden, you will not only save money but also consume organic products. You do not need to have a spacious house for this. All you need is sunlight and some pots to grow your greens.
5. Invest Excess Money in Equity
Small sums of execs money invested at the right place can lead to extremely high profits later on in life. The markets are upbeat and if you make small investments in equities, it would help you build your portfolio for use in times of need.
6. Buy Essentials in Bulk
Try to buy your essentials in bulk – be it an online vendor or a supermarket – because it fetches a lot of discounts and purchase points that can later be liquidated. This helps save a substantial portion of your regular expenditure. Moreover, buying in bulk saves repeated trips to the market and reduces your risk of contracting exposure to the outside environment.
7. Find the Right Savings Account
It is important to open a savings account with a bank that offers high returns and gives the highest returns on fix deposits. Choosing the best bank yourself will not even cost you an extra penny but it will give you extra returns.
8. Avoid Shopping Therapy
Online shopping may have become a refuge for those in boredom and distress due to the movement restrictions. Simply scrolling through and adding products to your cart can lead to unnecessary expenditure. Ask yourself more than once if you actually need it or it’s just a desire.
9. Do Household Chores Yourself
The pandemic has taught us the importance of savings. You may end up saving a substantial chunk of your monthly expenditure by doing your household chores yourself. It will also keep you physically fit, agile and self-reliant.
10.Learn New Skills & Choose Short Course
The internet is flooded with information on short courses. You may invest small amounts of money in picking up new skills that can help you pick up small online assignments or start doing some work from your home. This throws open a surplus income opportunity that can be used to raise your monthly savings.