Methods of saving money
Saving money is tough and overwhelming. With the internet filled with different methods of saving money, it can get difficult to pick which is the best choice for you!
In this article, let’s find out what are the varied methods of saving money and where you should park your money for the best returns.
Methods of saving money
Here are some methods of saving money that can help you achieve your long-term and short-term financial goals
1. Invest and Save
Investing and saving are one of the most crucial methods of saving money. It is also the most underrated method. Most Indians do not invest in the stock market or take benefit of its varied opportunities.
If you want to invest and save then here are some investment options to explore
2. Direct mutual funds
Direct mutual funds are a good way to start investing and saving. As there is no middleman in between, there is no extra cost.
Regular mutual funds are another type of mutual fund. These charge more in terms of expense ratio but are professionally managed and maintained by an experienced fund.
This is a great investment for investors who are new to investing and need a helping hand to make the most of their investments.
3. Digital Gold
Digital gold, gold bonds, or gold ETFs are also a way. There are alternatives for physical gold but it is a way of investing. You can do all of this online; there is no need to go to a jewelry store.
It’s the more suitable way of buying gold. Investors who want to sell or buy gold can do it without any problems with one click in an app. The minimum cost of buying or selling gold can be as low as Rs 1.
4. US Stocks
US Stocks are another method of saving money! That’s right. Suppose you plan to send your child abroad to study in USA or Canada.
The currency difference between USA and India will make the education cost higher for you. Imagine if you start investing that money regularly in US dollars so that by the time your child is off to the USA, you will be able to fund his/her dream without any loss!
Real estate investment involves buying, managing, and selling a property. It’s a type of investment and has different parts.
ETFs (Exchange-Traded Fund) are somehow similar to mutual funds. It’s a type of pooled investment security. It can be sold and bought much like other stocks.
Daily savings and budgeting
Many people ignore saving and budgeting as a method of saving money. It can help you cut costs and recognize areas where you may be losing money.
- Create a budget for the month. When there’s a fixed budget for the month, you tend to spend less. Settle everything under your budget.
- Don’t just save your money, think about your future too. Set aside some money for an emergency fund. So that you are prepared for any emergency like job loss.
- Start saving for your life after retirement. Make sure you have a retirement plan or fund in place way before time. This will help you amass more money over a long period of time. In fact, the sooner you think about your retirement, the more money you are likely to save up!
- Save and invest your bonuses or tax refunds. Put them into your savings account and consult your financial advisor on how to make the most of it.
- Manage your debts before making creating any extra costs like starting a new EMI.
- Save electricity. It will also save you money. By not using unnecessary fans, lights can cost you more than you can think.
- Cancel your automatic transactions, and memberships, and unsubscribe from unnecessary emails because by seeing offers you tend to make unnecessary purchases.
- Decrease your mobile bills. Cut off unnecessary plans from your bill. Use free Wi-Fi instead of buying extra data plans.
Banking saving tips
- Use your credit less. Pay your credit card bills timely to have less burden on your shoulder later.
- Use only your ATMs or debit cards because every time you use your ATMs or debit cards, you are not charged any withdrawal charges.
- Keep your monthly bills on automatic. It will free you from hassles and also pay your bills on time.
- If you love reading and like to have physical books then use your nearby libraries.
- Watch films at home instead of going outside and spending more there. Going to a theatre means buying popcorn, seats, transportation, etc. but when you watch films at home you don’t spend extra.
- Reduce your trips to coffee shops. It doesn’t cost you $2 – $3(Rs 200 – Rs 400), but it costs you more than that in long term.
- Instead of eating out regularly, cook your own food at home.
- Cut off your grocery expenses. Don’t shop extra from that grocery store. It helps you in saving extra money here and there. Make a budget for that too and stick to it.
Consult an expert advisor to get the right plan
Are ETFs a good investment?
ETFs are actually low-risk investments because they are low-cost and hold a bag of stocks.
What are the 2 methods of saving?
Cutting off extra expenses and investing money in mutual funds, digital gold, etc. Helps in saving money.
How much should I save every month?
Saving 10% – 20% every month should be the goal so that in long run you will be saving more.
Is investing money a good way to save more?
Investing money is a good way to save more but it’s an individual’s own choice to invest or not. But now, it’s a proven method to save money by investment.