Saving money can be an excruciating task; after all you give up a chunk of your income every month to contribute to your savings account. While only saving money may not make you wealthy immediately, it still is a practice which will pave your way to wealth. You need more than perseverance and dedication to save money, like saving smartly rather than the old methods.
You can’t save Rs.10, 000 today and expect to get wealthy tomorrow, but you can definitely save this amount and invest your way through good returns. Hence, you need to be smart about the way you handle your money.
Cut back on trivial expenses
You have to cut back on trivial expense, like REALLY cut back on trivial expenses to make sense of saving money. Little things like carrying a lunch box instead of buying lunch or saving change in a jar can help you make substantial progress in your savings account. End all the monthly or yearly subscriptions that you don’t need, try sticking to healthy fruits and vegetables rather than splurge on junk food, consider the value for money whenever you purchase something in order to make responsible purchasing decisions and so on.
Pay with cash rather than the card
If you have a frequent habit of using your card wherever you go then it is important that you switch to cash. People who pay by credit and debit cards pay 12-18% more than the average price, imagine all the saving you could have done with all that taxed price; it could have helped you save thousands annually. By paying cash you 1) Stick to a budget and 2) pay only what you bargained for.
Compare and match prices
Being smart with money also means that you spend responsibly. By splurging money without considering the price or its value will lead you to debt. Hence, purchase only those things that you absolutely need and compare prices online or from other shops to get the best deals. Yes, it’s a little extra task but the more effort you put, the more you can save annually.
Stick to discounted shops
Whether you buy groceries or clothes, make sure to hunt for discounted shops so that you get the best deals. A 10% discount may not seem like much at the moment but don’t forget the total number of discounts, it will definitely be a good enough amount and leave room for savings.
So how can I become rich by saving smartly?
This is easy, the more you save, the more you have money for yourself. The more money you have for yourself the more you can diversify that amount and make the most of it.
The difference between rich people and poor people isn’t much, we are all humans but some rich people know one thing that most people don’t and it’s to live within your means. Making the most of your means and allocating your money smartly can leave you with more money than you could have saved traditionally. Hence, it is always a good idea to invest part of your savings into financial assets like chit funds, mutual funds and equity to double those savings.
Remember, saving money is the first step to becoming rich, what you later do with those savings will determine your wealth.