October 30 is celebrated as the World Savings Day or the World Thrift Day to raise awareness about and promote saving!
This World Savings Day, let’s take a look at 5 effective tips to help you save up for a financially secure future!
1. Put your increment to use
Invest your increment before you get used to the surplus. The longer you wait, the more you will adjust to the extra income. You can increase your investments choosing for an option (like a recurring bank deposit or investing in SIP mutual fund) that will automatically invest your money before you get a chance to spend it.
It is advisable not to invest your entire increment or bonus. Keep some with you for a rise in expenses and of course, for pampering yourself after all that hard work.
2. The power of separate accounts
Handling multiple bank accounts can be a hassle but it is a great way to manage your savings better. Make sure you have a separate account for your savings and investments. Avoid using a debit card for this account. This will help you keep your savings ‘safe’ and avoid unnecessary spending.
3. Tax yourself
We work hard for 5 to 6 days a week and undeniably deserve to enjoy the fruits of our hard work. Denying yourself the simple pleasures life (a night out with friends, a fancy dinner or that designer dress you want) will only leave you unhappy. What you can do is levy a ‘luxury penalty’ on yourself. For every avoidable expense, put aside an equal amount for saving. Other than helping you save a significant amount of money, the double expense can discourage you from unnecessary spending!
4. Invest in long-term investments
Investing in long-term saving tools such as the National Pension Scheme, insurance policies, etc is of utmost importance if you want to build assets for a secure and carefree future.
Long-term investment options ensure that a part of your income is safe and cannot be tampered with.
5. Rope in a friend
If you think you cannot do this alone, ask for help! Rope in a friend or a family member who can offer checks and balances to ensure that you are managing your finances well. The person can keep tabs on your savings and spending and keep you on track.