How to save money – 5 easy Steps to save money and manage money in 2020.
5 tips on how to save money
You must be questioning yourself, how to save money? and how can I manage money? to survive in this pandemic situation where businesses are suffering, individuals are getting jobless, the economy is drowning.
Managing your finances has always been a crucial aspect of your personal life, but with a global pandemic underway, uncertainty is surrounding more than just your savings account.
Checking out and not keeping a close eye on your financial well-being is not an option. Instead, taking stock of how you manage your money may bring you greater peace of mind in this troubling time.
I am gonna tell you some tips on how to save money and how to manage money successfully.
I bet you, thing which i am going to tell you, you already know it. it will blew up your mind when you will come to know that how this small things can save up you lots of money.
Just keep on reading till the end and I will tell you how to be rich.
I have applied this points in my life and the result was stupendous. so without giving you any fluff material,
Here are 5 tips on how to manage money not only in this situation but for any.
- Make a detailed list of your expenses.
- Sort between essentials and non-essentials.
- Eliminate unwanted expenses.
- First save then make budget.
- Invest in the right thing
Make a detailed list of your expenses
It is very important to have a budget. People tend to forget that their entire income is not available for spending — rent must be paid, obligations must be met.
Calculate your monthly expenses, then see how much is left to spend. Track normal monthly expenses and assess what was actually spent.
It is important to write down the budget. Try to create a projected budget that is as close to the actual budget as it can be.
Tracking expenses is crucial, so try to be certain that all expenses are being watched.
This is the only successful method of getting rid of unwanted expenses when one is closing in on the target budget.
Here is a tip for you keep a small diary and a pen with you, at first it will seems difficult but you will get used to it (getting rich is not an easy job).
Start tracking your expense, write down everything you buy or you spend on. if it’s a chocolate or if its your netflix or amazon
Sort between essentials and non-essentials
Now that you have got your detailed expense sheet start sorting between essentials and non-essentials.
what do i mean by essentials and non-essentials?
Essentials are those thing which you will need to survive like grocery, vegetables, fruits, Electricity bill etc.
Non-essentials will be like buying things that you don’t need, mostly materialistic things.
Eliminate unwanted expenses
I know that you are smart enough to get my point. just look at the things which are not necessary and you will survive without them.
Don’t buy anything unnecessary, cancel your unwanted credit card, cook food at home don’t order from the restaurant(in this COVID situation it’s little risky too), cancel all your subscription, (I know you are stuck at home and you don’t have anything for entertainment, in this case, you can go for youtube I know you have mentioned internet subscription in essentials and me too can’t live without it.) but “to win some you have to lose some”.
First save then make budget
Now that you have done all the things mentioned above you must have got a good sight of how much money you have been spending unnecessarily.
Saving money must be a priority. between warehouse sales and wanderlust, it can be hard to save money sometimes.
Keep in mind that no one knows what the future holds, so saving money makes sure one is prepared at all times.
Try to get an emergency fund going because it may come in handy one day.
Let’s assume that you have an income of 20,000/- (it can be more or less), and your spending was around 18,000/- including everything and only 2000 was left at the end of the month.
Now you have done your tracking and analysis and you come to know that your essential spending is only of 14000/- and you were spending 4000/- on unnecessary things and you could have saved approx 6000/- per month that means 72000/- per annum.
so first thing first, save at the start when you get your salary immediately put at least 5000/- in your saving and divide that saving, for example, emergency fund 3000/- or any amount you want to categorize and save money accordingly.
Invest in the right things
what about invest in the right thing? only saving money is not enough you have to grow your money and that can only happen by investing that money.
You can invest in learning a new skill that will help you make more money or you can generate a side income, you can invest in mutual funds, stocks, real estate, or start a business.
Take actions, only reading this will not help you, you have to help yourself, getup start doing things only thinking about isn’t going to change your situation.
Saving money is a habit and a person is made by there habits. habits are which drive us and they are often difficult to change but not impossible. and by changing your spending habits you can achieve your desired goals.