An informative guide on how to save money each month
Whether you wish to meet urgent and essential financial requirements or plan for a smooth retirement, saving is a crucial aspect of life. However, with rising expenses and fast-paced life, it can be challenging to create a sizeable corpus in today's times. As such, we could all benefits from learning how to save money. To learn practical solutions to reach your savings goals, continue reading.
The first step in how to save money is to evaluate your income and set a budget for all your expenses. Once you determine the portion of your income you are spending, it becomes easier to develop a monthly budget and save money each month. To make budgeting more manageable, you can rely on various budgeting mobile apps that help designate portions of your income for different areas of your life, including savings.
A good way how to save money each month is to track your spending to determine how much you can save each month. You can optimise your saving habits by tracking necessary purchases versus impulsive expenses. Tracking your spending habits helps you curb overspending, identify and reduce your unnecessary and excessive expenses. Cutting back on unnecessary monthly expenditures can help you allocate more funds to save each month, thereby increasing your corpus.
A crucial aspect of how to save money is to create sensible Savings and Investment Plans. These are typically offered by the Government of India, banks, or other financial institutions. With these plans, you can inculcate the habit of saving in a systematic and disciplined manner to meet your short and long-term financial goals. You can pick from a host of savings plans to meet your personal financial needs based on your investment horizons and risk profile.
To boost your savings, you can rely on various investment options to help you earn money. You can opt for market-linked financial investments to earn additional income. For instance, you can invest in high-risk, high-return direct equity options like stocks. For a relatively less risky option, you can invest in Mutual Funds that enable portfolio diversification through a range of securities and assets.
The simplest way how to save money is to open Savings Accounts, Fixed Deposits (FD) and Recurring Deposits. While a Savings Account allows you to deposit your idle funds, FDs promote safe, lump-sum investments for specific tenures at predetermined interest rates. You can increase your savings by reinvesting the interest income and choosing the cumulative pay-out option. You can also open Recurring deposits that require fixed monthly payments and provide decent interest income.
Knowing how to save money and formulating a clear plan to accomplish the goal, is critical aspect in the process of proper financial planning. With digibank, you can save money through various Savings Accounts, Deposits, Mutual Fund schemes and more such investment options.
Download the digibank by DBS app to get started.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.