6 Money-Saving Tips for Beginners

It can help you buy glorious things, provide you with an exciting lifestyle, and help fulfil your wishes and goals. The catch? There isn’t always enough money to go around, and money can’t always buy you happiness.

And since there is no money raining from the sky or no trees growing free cash, we live in a world full of budgets. However, the good thing is, when you take control of your finances, you take control of your life, too.

In our world of instant gratification, therefore, it is more important than ever to be able to stay focused on saving our hard-earned money.

Here are six easy ways you can save money every day, starting right now!

  1. Record Your Expenses

When deciding to save money, your first step should be to record all your expenses, be it the household items you buy, every coffee you drink, or any cash tip that you give. Use your credit card payments or bank statements to help you with this.

Once you have your numbers, organize them by categories, such as groceries, gas, and EMIs, and total each amount. You can also take help of a ‘Spending and Budgeting Apps’ to get a clear picture of all your expenses.

  1. Make a Budget

Once you get an idea of how much you spend in a month, you can begin by organizing your expenses into a workable budget. Having a budget will help you plan your spending and thereby limit any overspending.

Also, in addition to your monthly expenses, be sure to factor in those expenses that occur regularly but not every month, such as car or house maintenance.

  1. Shun the Things that Trigger Unnecessary Spending

A big part of successful money saving is planning how you spend every rupee. Therefore, make it a point to go inside a store only when you know what items to buy. This is because, store aisles are filled with numerous products that trigger your buying impulse and lure you into spending more money.

One proven way to keep out this temptation is to have a shopping list. Doing so, you will spare yourself from spending a single dime on unnecessary purchases. But remember that having a list will only be effective if you do your best to stick to it.

Some useful tips while shopping:

  • Check the ‘best before’ dates on products so that you don’t waste money purchasing things you won’t use before you have to throw them out
  • If you usually shop every week, try shopping once a fortnight. This will help you to use all the food in your pantry before buying more
  • Avoid taking young children with you while are away shopping. This will give you more time to compare prices and save you from falling victim to ‘pester power’
  1. Make Changes to Your Habits

Changing one thing you regularly do can help you save more money. For instance:

  • Limit your coffee intake or cut down on alcohol. Although it sounds difficult at first, but it will save you money and also benefit your health
  • Have friends/family over for dinner rather than going out every weekend at plush restaurants
  • Set a limit for birthday and other gifts. Find creative ways to express your love with low-cost or handmade gifts
  1. Plan on Saving Money

Now that you have made a budget and limited your expenses, try to save 10 to 15 percent of your monthly income. A savings account can act as a convenient place to stash your cash. Moreover, it can be an ideal vehicle to save for a specific purpose, such as your new bike, new furniture, a vacation or a wedding. Also, making regular deposits in one such account and seeing your money grow will only motivate you to save more.

Further, a savings account is one of the most liquid investments, and many banks including Axis bank offer a ‘Zero balance saving account’ to customers. In the zero balance saving account, you can open an account but do not have to maintain a minimum balance for it and still get the usual facilities that come with a regular savings account.

  1. Automate Your Payments

If your bank provides an automatic payment option, set up your savings account in a way that it can effectively transfer funds to your creditors or service providers, if any. Doing so will prevent you from taking hold of cash and thereby help you stave off the mindless desire to purchase things.

In a Nutshell

The truth is, there are ample ways to save and grow your money. Find a few ways that work for you, and start incorporating the money-saving strategies into your life.