While for some, savings and investments is a piece of cake, some others find the task impossible as they end up spending every single penny from their earnings.
New Delhi: The covid-19 crisis has made people realize the importance of saving. As many people have lost jobs or witnessed salary cuts, liquidity issues troubled many. In times like this, where uncertainty is looming on every facet of life, financial management, saving enough money is one of the most important decisions to make. Covid-19 has taught people that saving money, even in small amounts will definitely help in difficult times.
As the saying goes, little drops make the mighty ocean. However, some people find it extremely difficult to save money. While for some, savings and investments is a piece of cake, some others find the task impossible as they end up spending every single penny from their earnings.
If you are not able to save money, here are a few measures that you can adopt to save some costs:
1. Budgeting: When it comes to saving money, the first step is to manage money efficiently so that you do not end up spending every last penny. This can be done with the help of budgeting. Budgeting helps you understand your necessary expenses and unnecessary spending. Once you understand what expenses you need to cut, the Budget will help you stick to a plan and you will not overshoot targets. Make a monthly budget and stick to it and you have definitely end up saving something at the end of the month.
2. Buying refurbished products: Sometimes one can’t help but buy stuff because they need it. However, such purchases can sometimes not leave anything your account to save. Recently, online retailers have started selling refurbished products at lower prices. For those who do not know, refurbished products are not necessarily second-had products.
These are products that have been previously returned to a manufacturer or vendor for various reasons and then they are normally tested and repaired before they are re-sold to the public. These products have a lower price. If you need to buy a product at the moment but are afraid that it will deplete your entire salary, you can buy a refurbished product and save some money.
3. Planning expenses: Reckless shopping without any plan is one of the major causes of not being able to save anything. A lot of people nowadays, keep browsing through apps like Amazon, Flipkart, Paytm Mall etc. Once they find anything interesting, they click ‘Add to Cart’ or ‘Buy Now’ without much thought. Mostly, people buy small things or stuff below Rs 1,000 without any thought. However, these small expenses over the month turn into an amount like Rs 6,000-Rs 7,000. This expense could be avoided by planning your purchases.
Always pre-plan your purchases and try to collaborate with your neighbours, relatives or friends to purchase goods in bulk quantity and avail better discounts. It is advised to time your purchases for the next season a year before. You can aim for the end of season sales to get better prices.
4. Price trap: Whenever you are planning to buy any high-price tag product like washing machine, microwave, refrigerator etc. for your home, consider quality over price. It is always wise to pay a higher sum for a better product than to buy a cheap product with poor quality which will later cost hefty repairs and replacements. While purchasing any product, remember that a higher price does not always assure quality. So, it is important to consider the reviews and the after-sales services of the product. If you shop consciously this way, you can avoid unnecessary expenses for sure and save that money for when you really need it.
5. Electricity bill: Nowadays, electricity bill is ignored by many when it comes to thinking about ways to reduce expenses and increase savings. However, it is a very important aspect that should not be overlooked. You can reduce your electricity bill and save some money by keep the temperature setting on the AC at an optimal level of around 23-25 degrees. In winters, use bucket and mug instead of shower to bathe as it will conserve water and also reduce the load on the water geyser, enabling significant impact on electricity consumption.
All the things mentioned above will cut down your spendings and will help boost your savings so that you have some money in your account which can help you tide over tough financial times.
