“Saving money” sounds complicated?
If you are a person who relates entirely yourself while reading some random memes about how saving money does not happen or how one doesn’t understand where all their income went off, you need to stop believing these memes. Because those are just some misleading crap! If you are reading this, I want you to understand that saving money is not a dream that would never come true. People save money by following simple steps at a time, which rewards in great value later in life.
Let’s look at this simple math.
Suppose you save Rs. 20 every day. In a week, your everyday saving of Rs. 20 will grow to Rs. 140. At this point, the numbers 20 or 140 might be already sounding tiny to you.
I want you to have a little patience if you are feeling so.
Even after a month of continuing this kind of saving, the amount you saved might be as little as Rs. 600.
You might be already feeling that this is nowhere near to your dream savings of millions(which you think can happen with a kickass business idea that you might be thinking of!)
Let’s talk a year now! If you save Rs. 20 every single day, in 365 days it will grow to Rs. 7300. Remember, I have not added any interest to this money.
Suppose you invest the same amount for compound interest. You can look at the compound benefits of the act that you did.
Rs. 20, in the beginning, might sound small and silly. But, you need to start using that “small and silly” looking amount to your advantage, by saving it. Every time, remind yourself how it is going to reward yourself.
Understand what are the essential bills/expenses that you cannot live without. For example, your rent, hydro bill, electricity bill, travel expenses, internet bill, grocery expenses etc are your essentials.
Once you have a clear idea about what are your essential expenses, you are ready to go ahead with the plan that I am going to provide you to manage your funds better.
Let me give you 5 simple steps to remember when you handle your money.
- At least 10% of your income should be kept aside for your savings.
- Save/invest your money before you spend it.
- Once you save/invest the amount, pay the bills
- Spend on your essentials after you are done with the investment and bill payments
- If you still have more money left, decide how would you like to use it. You might be able to save more money at the end of the month if you make the right spending choices.
Remember, when you prioritize your savings, you actually prioritize your life’s security. This is our small tip for your financial wellness.
Love your self, plan your life, live your life to the fullest by planning it well.
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