How To Save Money From Salary | How to start saving money?
You must have read many blogs and many articles to save money. But, most of the articles do not give you much information on how to save money from your paycheck. Today, in this article, we will provide information about how you can save money from your salary. In fact, it’s hard to find a comprehensive guide on how to save on the internet. But on the other hand, in the whole internet world, you will get to read many such articles, in which it has been told that how you can invest and accumulate a good amount for the future. Today, in this article, we will mention how you How to Save money from Salary – How to save money from your salary?
We find it true from somewhere that in order to save money, it is very important for us to invest in something or the other. Only then, we will be able to save money. It is true that without saving we cannot even invest. That’s why I have given information about how you can save money from your salary here.
➥How to Save money from Salary
Before reading any further, the first question you should ask yourself is why do you want to save money? Only then you will be able to save the money by keeping it safe. Most of the people in hand will be confused even thinking that we should save as we cannot afford to spend every single penny of our salary? Because this money can benefit us in future in any emergency.
If you do not save money then you will not be able to do any kind of loan repayment, neither you will be able to do anything for your future, nor you will be able to invest, also you will not be able to enjoy your life at the time of retirement. Will be able to take These are some facts that you should consider once. If you do not save money then all these problems can happen to you in future.
Same from today itself if you have decided that you have to save money. So you will be able to repay your loan at the right time, and secure your future, you will not have any problem with money in retirement and you will also be able to enjoy your life.
For any person who does a job and takes salary in return. Saving money is very important for him. Especially for your retirement and for emergency fund in case of emergency. Both these things are such that every working person needs money for these things at some point or the other in his life.
How to start saving money?
Before every working person starts saving money, it should be clear in his mind for what purpose he wants to save money. So before starting saving money, you must identify your objective correctly.
However, when we talk about saving money for the long term. At the same time, we also tell you about investing money in the long term. But, wealth creation is a goal that is very broad. So we will break it down into two components and tell you in detail.
1. Retirement Saving: –
What is retirement savings? Who is this one who takes care of your expenses even when you don’t have a job/work. That is, even after retirement, you are able to meet your personal expenses as well as your family’s expenses. Remember that the greater the service generation savings, the more financially independent a person is.
2. Emergency Fund :-
What is Emergency Fund? This is the fund that takes care of future unforeseen expenses. Under this you can also add two main components which include cash and insurance. Emergency fund is useful in things like accidental accident, marriage at home etc.
To have both these funds, you need to save for the future. You need to prepare well in advance for both the emergency fund and the retirement fund. Without both the funds, you cannot think of a good future. Because regardless of where you invest, investments can be risky. That’s why both the funds give you the advantage at the time of need of emergency funds.
How much money should you be saving every month?
Whenever it comes to saving money, every person makes his savings keeping in mind his general expenses. This is also because your income is limited. While saving money from your monthly income, your main focus should not be on how much you earn, but on how much of your income you are able to save.
The analogy is seen that one calculates in this way to save money. Uses 50% of his salary for his normal lifestyle expenses, 30% for other expenses, and 20% for savings.
But this calculation does not apply to every single person. Therefore, whatever amount of money you come short, you should keep in mind that you save as much as possible. For example, if you are saving to buy a house, it will take a long time to save money for the down payment if you only save 20% of your salary and other short term goals like vacations or retirement plans etc. If you think, then you need to save more.
Before thinking about saving money, you should know about your purpose properly, about which we have already given information to all of you above. You will decide the short term and long term goals of this second in your life. And on the basis of that you can start saving money. Instead of spending 50% on living expenses, you can consider reducing it to 40%. If reducing down to 40% seems like a drastic step, consider reducing it by 1% and increasing your savings by 1% every month. Such an approach requires discipline and careful sugaring. If you say so, then you will definitely be successful in achieving your financial goals.
Follow these steps to save money every month from your paycheck
- Make a monthly budget plan every month
- Try to cut down on your daily expenses
- Save and invest in the right way
- stay away from debt
- Save money with periodic bonuses and increments
- Make loan EMI payments on time, so that you don’t face any kind of penalty
Make a monthly budget plan every month
Before you start saving money, you need to create a budget for yourself. Every month you can create a monthly budget. And save more of your paycheck. You can calculate your budget yourself. In which month, how much money you are saving, how much money you are going to spend in the next month, keep preparing all these things in advance. This type of monthly budget plan prevents you from overspending, so that you will have some money left over at the end of each month. You can invest that money in the right place.
Cut down on your daily expenses
Many people spend every day on unnecessary things. You can avoid those expenses. So try to cut down on your daily expenses. For example, if you go to the vegetable market, do not buy more vegetables than required. Without using your car or bike, you can simply walk to buy vegetables. Your health will also be maintained by this.
You will not spend on unnecessary things. You will definitely be able to cut down on your daily expenses. The following things may come under this.
- mobile and tv recharge
- transportation
- smart online shopping
- purchase of ration water
- entertainment expenses
- electricity bill
- take out orders
- Unnecessary Credit Card Spending
- cost of drinking and smoking
Save and invest them in the right places
It is very important that you save to achieve your financial goals, but they also need to be invested in the right places. This is because many times you invest in things that carry a lot of risk. Because of which there is a possibility of sinking your money. If you invest in the right place then definitely you will get its benefit. You can use the following instruments to invest your money.
- Invest in mutual funds or you can do SIP.
- Apart from this, you can deposit money in short term funds run by various banks and public sector banks.
- You can invest in PPF/EPF.
- Apart from this, you can also deposit money in other savings schemes run by various government banks and non-government banks.
Avoid taking loans
Debt or loan is such a thing, after taking which any person remai ns in a little dilemma. Every month he has to deposit the repayment of the loan in the bank. It is often seen that we are not able to deposit our repayment on time when someone has spent excessively. Because of this, our every month budget gets messed up.
Hence, you can avoid taking a loan unless you are in dire need of funds. Due to some sudden reason, you are Karjule.
Salary hike and keep bonus
Whenever you get any increment, incentive or bonus etc. Then you should try to keep this amount safe and secure. You should not bring such negative things in your mind that you have to increase your lifestyle and spend on unnecessary things for excessive lifestyle. This is your loss. This amount will be useful to you in times of need.
If in any month due to some reason your monthly budget gets disturbed then you can balance your monthly budget using this amount. So try to save the increment and bonus you get.
