Published on February 1, 2022

How to Save Money?

“I very well understand the importance of saving but I am wondering how to save money?” If this is where you are now, here are your saving tips.

  • FIRST and FOREMOST is DO BUDGETING. Many financial experts strongly recommend Budgeting as the first step towards saving money for the following reasons.

  • Regular budgeting (most recommended one is monthly budgeting) will help you identify your all source of income, total income received, expenditure items and expenses incurred for the budgeted period. With budgeting you can earmark funds towards your expenditure items and track the expenses. Once you keep tab on the income and expenses, you will come to know whether you have overspent or underspent than the income received for the budgeted period.

  • When you follow a regular budgeting pattern, you will be able to identify where you are spending the most, where you are spending least and where you can save the money. Especially when you have a deficit budget, this data is going to be a crucial one for you to bring your expenses within your income.

  • Make savings as a habit. Set aside some money as savings in your Budget. Consider savings too as one of your regular monthly expenses in the Budget like your grocery or utility bill.

  • Any remaining money from your income after all expenses can be saved.

  • Limit your expenses on your desires. Identify your needs and desires, then earmark funds to your needs which cannot be avoided and control your expenses on the desires. Your desires may be something like dining out with your friends weekly, which you can plan them for monthly or if you are purchasing 2 branded suits/month, you can reduce them to one per month.

  • Keep debt under control. If possible, avoid getting finance/debts except for crucial needs such as Housing or Education or for Medical. Debt causes you additional expenses on interests and will diminish your opportunity to save.

  • Buy quality goods at fair price. Do research before buying any product for its quality and price. Purchasing a good quality product will reduce your maintenance and repair cost. Follow healthy habits to avoid medical expenses and to have reduced insurance premiums, as they eat a large part of a person’s income when incurred.

YSS Services Easy Budgets