What are the best ways to save money?

We all want to save money but our tight budget and too many expenses are not allowing us to do but once you have started to take action in the right direction, you can save a good amount of money each day. Yes! Righty heard you can save money daily.

You don’t need to take bold actions for that but all you have to do look carefully your daily money outflow and start managing or cutting down expenses.

I have some money-saving tips which will surely help you to save money from your day to day activities, they all are incredibly simple to follow and if you start implementing few of the tips from these, you will see a good difference:

1. Set Saving Goals: One can achieve something once he makes a goal. Thinking about saving is a part of our life but setting goals to set aside a small amount actually in a day will help you to achieve your goal. For instance, if you can save let say Rs. 500 per day, then you have a saving of Rs. 15,000 in a month and approx Rs. 1,80,000 in a year.

Wait, the saving is not ending here. Now, think to double it. Yes, invest your savings now in FDs, SIPs, etc. This will ultimately help you to save a good amount of money.

2. Benefit of Cash backs and discounts: Before making any purchase, compare the prices of different sites, look for the benefit of maximum cashback every month you can avail. For making bills payments also, there are various sites like Paytm, Freecharge, Phonepay, etc.which gives you discounts on every month’s payments and additional cashback also.

Similarly, if you use a credit card then you can avail the benefit of Interest-Free EMI also when some companies offer zero interest EMI in the peak shopping season.

3. Investment plans: Investment in different instruments is one of the best alternatives to invest and save your money along with getting a good return. It’s always good to diversify your investments with higher return plans.

People generally limit their investment in saving account and Insurance-linked plans but there are other options which give you much higher return when you distribute your money in Fixed Deposits, PPF, Bonds, ELSS, Mutual Funds and Equity Market.

4. Curbing your spending: Cutting off your expenditure is a mostly heard option to save money which is possible with a good financial budget only, but we are too lazy to spend our time in making a budget and free enough to spend without thinking about savings.

You just need to keep a track of daily expenses like rent, travel, education, shopping, Bills, etc. and start cutting off your unnecessary spending. Next month again you can use the same revised budget.

5. Prepayment of Loans: Mostly families are under the debt of personal or home loans, which is a financial burden on them to repay. Prepayment of loans can help you to save a huge amount of interest. Prepayment will only give you the benefit of early disposing of your loan but also various tax saving options.

Make a good plan with the help of your lender to repay your loan and take advantage of saving interest.

6. High-Interest Savings Accounts: Having a saving account is common for each individual now but having an account offering higher interest and other benefits is still a lack of understanding for a few people.

Most people look about the minimum balance or zero balance saving accounts but they offer low interest. It is recommendable to compare the interest rates while opening a bank account as various banks offer a good rate of interest.

We all are aware that saving money is a priority rather than spending it but failed to get good ways to save money to secure our future or to deal with some emergencies. On average a person can save 25% of their earnings without disturbing their routine life. Now, it’s your time to check how much you can save by following the above simple and practical ways.