Almost everyone understands the benefit of saving money. Suppose you have a good habit of saving some money every month. In that case, it helps build a solid cash reserve, strengthen your financial condition, meet all essential needs with remarkable comfort, and smoothly pass a short phase of unemployment. Unfortunately, 2020 and 2021 were devastating years for millions of individuals across the globe. More than 200 million people lost their jobs due to the rapid spread of coronavirus. Unemployed individuals and their dependents faced many financial problems simply because they didn’t have sufficient savings.
Everyone talks about saving money, but hardly anyone takes sincere steps to implement the words on the ground. In today’s fast, ultra-modern, and technically advanced world, a large number of individuals have a strange habit of spending money carelessly. As a result, they suffer a lot when unfortunate incidents knock at their door. How to save money in 2022? Let’s have a look at some valuable recommendations listed here below:
Have More Than One Source Of Income
You will save money only when you earn money from more than one source. In India, the average working professional shoulders the financial responsibility of at least five individuals in their families. Therefore, most people live from one pay check to another. You will be surprised to know that the average monthly salary in India is just ₹16000. With this limited income, It challenging for an ordinary individual to meet all essential financial obligations and save some money for future use.
The rapidly increasing inflation in the country makes it even more difficult for them to arrange enough money for essential needs and save cash. That is why it is necessary to increase your income as much as possible. If you are engaged in a full-time job, try to earn some extra bucks in your free time by getting involved in freelance jobs.
Making extra money is always beneficial as it helps you add some more money to your savings account. If you happen to be a businessman, use suggest selling and aggressive market techniques to sell more products and services every day. This will help you increase your revenues and save a significant amount of money every month. Having more than one income source allows you to meet all essential financial obligations with great comfort and save a considerable amount of money every month.
Unsubscribe From Unnecessary Premium Services
These days, many companies try to sell their premium products to numerous customers to boost their profit margins and increase market share to a great extent in a short time. While taking a premium service allows you to improve the quality of your life, it consumes more resources rapidly. Let’s see some examples of premium subscriptions in our everyday life
- Buying a subscription of Netflix, Amazon Prime, and other OTT platforms,
- Purchasing the premium subscription of world-recognized newspapers,
- Using premium taxi services to move from one place to another at regular intervals,
- Taking an expensive package for TV channels.
These are some expensive things without which you can have a healthy life. Therefore, to save a significant amount of money every month, you must consider unsubscribing from premium services that are no longer useful in your life.
Avoid Impulsive Purchasing of Goods And Services.
Many of India’s middle-class individuals are suffering from the disease of impulsive purchasing of goods and services. In simple words, impulsive purchasing is when a person buys goods and services unnecessarily without having any plan in advance. Whenever they go to shopping malls, community centers, trade fairs, they forget their policy of maintaining financial discipline and start buying advertised products and services with no apparent intention of their immediate use. It results in the wastage of a lot of money and can jeopardize their overall financial condition. Therefore experts recommend you exercise financial discipline and avoid impulsive purchasing of goods and services as far as possible. Before purchasing the required stuff, analyze its need carefully and see your monthly budget. This will help you save a significant amount of money every month and enrich your savings account with some extra bucks.
Abandon or Limit The Use of Credit Cards
All financially literate people appreciate the benefits of having credit cards. It allows them to arrange the much-needed money during unfavorable financial times and lead a healthy life throughout the year. Currently, 67.6 million Indians actively use credit cards to meet multiple financial obligations in everyday life. Despite all its advantages, having a credit card also comes with a high cost. Most credit card users start squandering money and fall into an endless cycle of debt. Many of them default on credit card payments. Banks and financial organizations impose heavy late fines and take legal action against credit cardholders in such situations. Therefore either you should cancel your credit card entirely or limit its use. You must use your credit card as a last resort to arrange the much-needed money and pay all its payments at the right time.
In simple words, budget optimization is a process in which a working professional supervises the use of hard-earned money and tries to save some cash every month. It doesn’t matter how much you earn and how many income sources you have. Budget optimization always helps you keep your finances in proper order and avoid the unpleasant situation of total economic collapse. Depending upon the number of dependents, monthly salary credit, overall expenses, optimize your budget and allocate sufficient money for all necessary monthly expenditures. You need to save at least 40% of total monthly income every month.
Use Public Transportation Services.
We move from one place to another for different purposes almost every day. It is unfortunate to say that a large number of individuals in India are now accustomed to a sedentary lifestyle. They preferred to use personal vehicles and cars while moving from one place to another. Although this, of course, lets them have a feeling of mental peace and convenience, it comes at a high cost. The cost of petroleum products in India is already sky-high. It is believed that petroleum companies will increase the price of petrol and diesel once elections in 5 states end.
The regular use of personal vehicles can burn your financial resources badly and affect your savings. Therefore, you must use public transportation services as far as possible to cover short and long distances. Use personal bikes and cars only when you need to arrive somewhere in a great hurry. To cover small spaces, you must use bicycles or electronic vans. It will help you save a lot of money spent on purchasing petroleum products.
Refrain From Buying Branded Products Every Time
With its 1.3 billion people and rapidly growing population every year, India is a lucrative market for the world’s leading brands. Of course, products and services made available by famous brands perform the job very well and provide you with a high level of comfort. But they are very costly. If you tend to buy various goods and services only from recognized companies, you will have to spend a considerable amount of money every month. If you’re on a limited monthly income, it may downgrade your financial condition. Always analyze the product quality and their reputation in the market, and never hesitate to bargain with sales executives to get the required stuff under your budget. You can also buy good-quality products and services from Indian companies at affordable prices.
Exercise Precaution While Taking Personal Loans Online
Many Indians take out different loans from time to time during financial emergencies. Banks and financial organizations have flooded the market with different loan products with attractive terms and conditions and easy eligibility criteria. That is why people take loans without proper planning and bear financial losses in the short and long time. All frequent credit borrowers need to analyze different offers of loan products and understand their terms and conditions. They must keep in mind that banks are always ready to offer loans to needy customers with the sole intention to earn more profits in terms of interest fees, processing charges, late fines, etc. When you are on a mission to save your money as much as possible, avoid taking instant online loans.
If this is impossible, get more information about loan products available in India’s financial market and the expert’s recommendations. You must analyze the requirement for loan money, keeping different associated factors in mind. Your monthly income, repayment potential, creditworthiness, and existing credit score matter a lot for banks. You must take only the required loan amount for unavoidable expenses and repay the borrowed money at the right time. It would help if you always looked for a personal loan with the lowest possible interest fees and installment repayment option. It will help you stay away from financial problems and save some money used on loan repayment.
Think Thousand Times Before Investing In Cryptocurrencies
Over the last few years, different cryptocurrencies have emerged as an alternative source of passive income for many Indians. More than 105 million, 7.90 % of India’s total population, have invested in different cryptocurrencies. Indian investment in cryptocurrencies has crossed $10 (₹7,48,21,00,00,000). One among six people living in urban India invests in cryptocurrencies with the hope of getting bigger returns. It’s true that with careful investment decisions, a good number of people make money via cryptocurrencies.
Remember that central banks and any government entity do not control cryptocurrencies. So you are entirely responsible for losses if something wrong happens with cryptocurrency investment portals. Different media organizations have reported that financial scams and embezzlements are pretty common in the cryptocurrency world. Several bogus cryptocurrency investment portals promise people to give greater returns on investment.
After collecting a lot of money from many investors, cybercriminals disappear with no trail left behind. The hacking and looting of cryptocurrencies have become quite rampant in recent years. Investment in cryptocurrencies is always fraught with risks. If you are an ordinary individual with a limited monthly income, don’t burn your hard-earned money on cryptocurrency investment. All your money will vanish in just one go if something wrong happens with your wallet or somebody steals cryptocurrencies.
Prefer Group Traveling Instead of Solo Trips
Indians love visiting their favorite destinations in different countries, meeting new people, dining in 5-star hotels, etc. Well, traveling to various locations is quite beneficial. But you have to spend a considerable amount of money traveling to a distant place. Institute of visiting your favorite destination alone, look for group traveling packages available at affordable prices. It will help you save a significant amount of money. In India alone, there are many destinations of tourist attractions. You can visit there to take a break from useful life and refresh yourself. Traveling within India is always cheaper than visiting any foreign location.
Stay Away From Showoff.
In India, people have a strange habit of following others daily. For example, if someone has purchased an expensive car from a world-recognized brand, people nearby start thinking of buying the exact vehicle to maintain their status in society and keep prestige high above others. However, they never think of the benefits of buying a new car and its financial aspect.
You need to be realistic and exercise financial discipline in your life. You must buy products and services according to your desire and needs. Don’t buy unnecessary things just because others have done this. Please stay away from excessive show-off as it will help you save your hard-earned money for good causes.
Stop Regular Eating Out Habits.
Numerous working-class professionals living in India don’t think it necessary to cook food and beverage items at home. They have a strange habit of eating food items at expensive hotels and restaurants regularly. Always keep in mind that eating out in prestigious hotels and restaurants at frequent intervals will eat up your money. You might face cash crunches in the middle of the month, even for essential needs. You must prefer homemade food items in everyday life. Visit hotels and restaurants only when you need food items on short notice.
Pay All Utility Bills At The Right Time.
Paying all utility bills at the right time is essential to save your valuable resources. For example, if you don’t pay the monthly electricity bill at the right time, the local electricity board will apply late fines against you. In the same way, Life Insurance Corporation will ask for additional fees if you don’t pay insurance premiums in a timely fashion. Therefore, timely payment of all utility bills will keep you away from penalties and help you save a significant amount of money every month.
Now, people are financially aware in India. However, they suffered tremendous losses in 2020 and 2021 due to unemployment, the covid-19 epidemic, reduced business opportunities, lower salaries, an economic slump in the global market, higher inflation, etc. In 2022, we are returning to a normal lifestyle. Therefore, many individuals are looking for new opportunities to earn more money and save some cash for future use. Following the tips mentioned above will help you keep your expenses under control, optimize monthly income, and save a significant amount of money every month. Best of luck!