Create a money management system
Money management and financial planning sound like a tough deal, often deterring people from taking the first step. However, what many fail to understand is that saving money is rather an easy process. Before you embark on this journey, it is crucial to open a savings account to make this process easier to handle.
With that being said, here are a few tips and tricks to create a sound financial plan for your short- and long-term goals.
Having a systematic money management system and approach toward sustainable usage of pay checks can be a boon when your aim is to save money for future prospects. And a savings account online helps you do just that with ease. A few tips on how to create a money management system are as follows.
Evaluate your daily spending
Keep a tab on your daily spending. Be mindful of where and how much are you spending. It can include your cab charge to the office, online groceries, and more. Know the average amount you spend in a day and where it can be curtailed to save you some extra note by end of the day. You can utilise your savings bank account statement to identify such areas.
Set a monthly budget
As soon as you know the average amount you are spending on your needs in a day, you can create a budget of how much funds you would need in a month. Also, add your important recharges, bills, and EMIs in a note while you create this budget. Taking such baby steps is one of the best ways to save money every day for a better future.
Track your daily spendings regularly
Have a regular or weekly check on your spending with the help of a savings account. This would help in identifying any gaps in implementing your budget and rectifying those in time.
Change your shopping habits
Liked that bag on the shopping website and hit on purchase button? Ordered that customized wallet you saw on social media? A lot of people are guilty of doing this. If you are determined to improve your financial health in the long run, putting a stop to such impulsive shopping habits is another aspect you could focus on.
Avoid emotional buying
Heard of the term retail therapy? In line with the previous aspect, a lot of people are guilty of indulging in emotional buying, wherein you might shop as a means of escapism, or under peer pressure. The reasons could be multiple, except for a genuine need of the product. This habit needs to be changed too, if you want to develop a sufficient corpus as your savings fund.
Don't buy according to trends
Trends come and go, but your financial responsibility towards yourself and your family remains intact. Buy things that are ever trending and do not follow all the trends that come and go if you want to save some extra funds for your dream and goal that requires a substantial amount.
Insource everyday spending to save money every day
Today, everything is about outsourcing to save on time and effort. But what about money? That’s a crucial aspect that doesn’t get the thought it deserves. Making minor, but significant, changes in your lifestyle, to insource rather than outsource, could help you reach your savings goals much faster. Some examples of adopting the method of insourcing rather than outsourcing include -
Reduce dining out
Cook at home and reduce eating out. If you are guilty of ordering in say about seven times a week, gradually reduce the number. This change would reflect positively on your daily budget which, in turn, would help you to reach your savings goals quicker.
Clean your car at home
Getting your car washed at a fancy car wash center is expensive. The charges are high and can be avoided by simple efforts at home. Wash your car by yourself and save that extra note in your wallet. If you need your vehicle to be cleaned by professionals, you could get opt for such services once in a while rather than weekly.
To sum it up
Saving money is a process that requires constant monitoring and lifestyle changes. Though such sudden changes may inconvenience you in the short run, the benefits of such alterations could be monumental in the long run. And while you are at it, it is always a prudent choice to opt for a savings account online to manage your finances better and in a hassle-free manner.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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