Every millennial goes broke frequently. Reasons can be many. But one of the main reason could be not having our financial plan in place. We (young salaried employees) are often asked whether we have started saving already and we seem clueless. Probably, we would like to. But we do not know where to begin. We feel having a financial plan would impose restriction on our spending, fearing which we don’t opt for one.But one needs to understand that, financial plan would help us spend efficiently and channelize our cash outflow and not reduce it.
So let us get started with few simple tips which will definitely help you to save better.
1. Track your expenses:
I know this comes from an old school of thought, but it holds true even today. Keep a note of your spending. We all have memories of our mother keeping a private diary in which she made a note of all the monthly expenditure. She knew how important it was. Today, in this fast-paced life, we can do the same thing in a cooler way. Apps like ChintaMoney help us to keep a track of our spending and also categorize it meticulously. This will reduce our burden big time of maintaining a separate book which we are not used to. Also, it will avoid our month-end struggle where we are finding it hard to even spend a penny.
2. Automate your saving:
I often hear people complaining that they do not have enough money left for saving. In other cases, they say they will do it for sure from the following month and fail badly at it. We all have done that. Multiple times, we have planned to save some money, but failed every time for some reason. Our financial plans are just like our new year resolutions which hold good for week and then we are back to our old way of living. But the thing to take a note of is, human desires are infinite and it can never be fulfilling. We will never have that extra amount to save, even after a decade when our paychecks get better and better. Simple tip for this would be to have a separate account apart from our salary account. We should make it a point (rather automate) to deposit certain share of our salary to this account even before we start spending. This will unconsciously bring certain discipline in us and over a period of time, we grow a degree of detachment with this saving account. We begin to think twice before we touch that amount, which is a good thing to happen as our objective is to save more.
3. Create a wish-list:
We all have secret wish-list, may be to travel or to have the latest smartphone or buy an apartment in future. But we need to start working towards those wishes from today. We must cut down on unnecessary spending. Its better we list down our needs and wants. Curb our spending on wants and start saving to fulfill our own wishes. There is very little satisfaction on living a luxury life, if we get it through a credit card. It’s more of a burden than satisfaction. We better get it by our savings and get genuine happiness. We can observe things around us and realize that many things are unnecessary. We can cut down on having such things and start saving for our actual dreams.
4.Get smart like your phones:
We do not use our smartphones smartly. Start doing that. Every other ad on social media and payment app, is related to some discount offer and coupon codes. We need to start availing those before we buy anything online. Be it booking a movie ticket or a bus ticket or our groceries, everywhere we can make use of these offers and get cashback. These things can help us save big!
With ChintaMoney — UPI enabled personal finance management app, you can do all the above steps at your fingertip without any hustle.
We hope these simple tips help you start your savings today and more in the long term.
Save more, enjoy even more!