5 unusual budgeting tricks that can surprisingly boost your savings
What's the story
Budgeting is an essential skill to manage personal finances; however, sticking to a budget can be a daunting task for most of us.
While traditional tips like tracking expenses and setting savings goals are popular, here are some unconventional tricks that can help you save money in ways you never imagined.
These eyebrow-raising strategies may seem weird at first, but can be surprisingly effective.
Cash control
The envelope method with a twist
The envelope method involves dividing cash for various heads of expenditure and putting them in envelopes.
To give it a twist, try using digital envelopes by creating separate bank accounts for each head.
This way, you can easily keep track of your expenditure online, without the hassle of carrying cash.
It ensures discipline, since moving money from one account to another requires more effort than just pulling out of an envelope.
Spending freeze
The 'no-spend' challenge
A "no-spend" challenge requires you to not spend a single penny on non-essential items for a predetermined time, say a week or a month.
This activity will compel you to assess your needs and wants, and can inspire you to get creative with what you already have.
It can save you a lot of money and help curb impulsive buying.
Spare Change Saver
Round-up savings technique
This technique rounds up every purchase to the nearest whole number and saves the difference.
For instance, you spend ₹950 on groceries, round it up to ₹1,000, and save the ₹50 difference.
Many banks have apps that automate this process by transferring the spare change into a savings account, making it an effortless way to build savings over time.
Zero spend days
Implementing 'buy nothing' days
Designate one or two days each month as your "buy nothing" days, where you don't spend a single penny.
These days promote awareness of your shopping habits and allow you to reflect on your spending priorities.
Eventually, if you stick to these days, you'll find that your overall spending is reduced without feeling left out or deprived of anything.
Information
Strategic use of gift cards
Instead of using credit/debit cards directly, purchase gift cards for stores you shop at regularly. This way, you'll restrict your spending capacity while ensuring that the money goes only toward planned purchases. It helps you avoid overspending while still fulfilling essential needs efficiently.