If it were asked about their goals from a financial standpoint, most people probably would not hesitate to say they want to be rich or that they want financial freedom to buy whatever you heart desires.
Should you ask a rich man about the secret behind his immense wealth, the probable answer would be financial acumen, money saving habits, and right decision. No wonder, we are living in a world full of consumerism where our houses are full of things that we don’t even use in a lifetime. Be it our kitchen drawers (groceries), wardrobes, makeup kits, jewelry boxes, car garage, and even shoe racks; everything is full. Despite our idiotic habits of collecting good, we all are desperate about saving money. And, the most difficult part here is – how to start and from where to start? In this article, I will tell you how to save more and how to become rich in India?
1Plan Your Budget
Everything starts with a plan and should you lack one, you should not regret on your financial hardships afterward. Planning is not that tough either. You can simply start by having an excel sheet of your incomes and expenses. By the end of the month, you will be able to track the useless expenses. Next time, you can alter your budget accordingly.
2Upgrade Yourself About Taxes & Deductions
The best thing you can do to improve your saving is – upgrade your knowledge about taxes, deductions, and rebates under income tax and other schemes. Once you know the areas from where you can save legally, you will be able to save more. Try to invest in health or life insurance schemes. Not only you can enjoy tax deductions for these, but you are also securing some money for your future.
3Do Not Fall Behind On Payments
I think we all are guilty of this thing more or less. We have developed a habit of postponing payments. Be it our telephone bill, internet bill, credit card bill; we keep on holding it until the last date. And, finally, we pay all those bills with a late fee/penalty. Yes, I agree, there are a few bucks only , but they are. We must have a better repayment plan and possibly keeping the amounts to date are more than OK to keep money in the pocket. Better pay in advance than to pay penalties.
4Do Not Buy Expensive Toys
I have seen people who once manage to get some bucks, they immediately buy a luxury car or other expensive toy. Do you know, being a supporter of the simple life, (world’s third richest man) Warren Buffett avoids luxury items such as yachts or luxury cars? For him, these expensive “toys” merely give you headaches. Instead, he advises directing money towards investment coming out good profits.
5Do Not Waste Your Time
When you have business negotiations, it is advised to document and make a decision in advance. A wise man is always against useless talks, which resembles an immature behavior. If you make a business proposal, directly and immediately call your price. Experts claim that too much discussion won’t let you decide on things.
6Set A Limit For The Money Borrowed
Life seems easy on credit card, but in reality, it is not. One should borrow only what he can pay and not be afraid to negotiate with banking institutions. Should you have a credit card or credit facility, use it wisely, and not extravagantly. Swiping your CC or asking for a loan is an easy thing. Firms won’t deny you issuing a loan until you have a bad credit history. But, you must understand that at the end, it is you who has to pay debts. Therefore, never borrow more than your limits.
7Wait for Promotions and Use Coupons
It is clear to us that the market is still primitive, but even in these conditions, money can be saved. Be careful of some prices, and do not miss to see if a larger amount of discount, etc. is available. Never pay full retail price when you buy something on sale. So, you should not hesitate to use discount vouchers or coupons to buy products or services.
8Invest On Yourself
Experts also highlight the importance of investing in oneself. Keep improving yourself because that is the only way of improving your lifestyle. After improving your talents and abilities, you will become more valuable and get into a better position from which you can earn more and finally, save more.
9Clarify The Provisions Of Any Contract
Before you sign a contract for a new job, or before beating the palm of a business, make sure you have thought well to all provisions of the contract. Imagine the worst situation ever. Try to assess whether the compensation promises to cover additional costs that may result from poor conditions or unexpected accidents.
10Do Not Be Dependent On A Single Income
Start to look for other possible sources of income by taking your small additional jobs or making smart investments that will bring you good returns. The financial experts always talk about diversifying the range of investments to have more chances to win.
11Control Your Impulses To Shop
When you are to take important financial decisions, it is that when you buy something: first ask yourself, ‘WHY’ and then have your decision. If you do not have a satisfactory answer, then you do not deserve that step.
12Keep The Loose Change
And this is a phase where we are deficient. I really find it difficult to understand, why we all are ashamed of taking the change offered by the store. We can always put those loose coins in piggybank, if you are better off, especially if you have a child. It’s a good way to teach your baby about savings. Opportunities to use the money will always appear.
Regardless of one’s financial status – even if born into a family of wealthy parents, or whether on the contrary, strives to pay the debts of parents, saving should be more than a secondary thought. Saving improves the quality of life and especially the perception of money. Do not miss to check your progress every month. By doing so, you will be able to control your meaningless expenses and you will be able to improve your savings.