These 5 small everyday habits can lead to big savings
What's the story
Saving money often seems like an intimidating task. However, if you add these small habits to your daily routine, you can make it much easier. These habits don't call for drastic lifestyle changes and can be added to your life seamlessly. From making minor adjustments, you can increase your savings without feeling stressed or overwhelmed. Here are some practical tips to help you boost your savings effortlessly.
Automation
Automate your savings
One of the best ways to save money is to automate the process. Have an automatic transfer from your checking account to a savings account every month. This way, a part of your income is saved before you can even think of spending it. Even if it's just ₹500 per month, over time, the amount adds up a lot.
Information
Track your expenses regularly
Keeping track of where your money goes is essential to save effectively. Either use budgeting apps or maintain a spreadsheet to record all expenses. Once you understand your spending patterns, you can figure out where you might cut back and channel that money into savings.
Delayed gratification
Embrace the 24-hour rule
Before making any non-essential purchase, it is wise to wait for 24 hours. This time will help you think if the item is really necessary, preventing impulse buys. This short wait often gives you enough time to think about your financial goals and priorities. Usually, you may find that the initial urge to buy fades away after this time, making your spending align with your savings goals.
Cash usage
Use cash instead of cards
Going from credit or debit cards to cash for daily purchases can help keep a check on spending habits. With cash, you're cognizant of what you're spending because once it goes away, it goes away until refilled. This physical way promotes mindful spending and helps you remain within budgets, preventing overspending.
Subscription check
Review subscriptions annually
Many of us subscribe to services we hardly ever use but continue paying for them every month or year without even realizing it. Take some time once a year to look at all subscriptions and cancel those that you don't need anymore or use infrequently. Pump these funds into savings instead.