Wondering how to save more MONEY? Here are 7 smart tips

Most of us dream about owning a mansion, having a fat bank account and building our own empire. And guess what? The first step is the same for everyone, that is to start saving your hard-earned money smartly. Saving money isn’t rocket science but it does take a little planning and dedication to manage your finances efficiently. To get you started, here are seven smart hacks that will help you to make consistent progress and secure your future.

Start with keeping a record of your expenses. How much do you pay for your daily commute, coffee, smoothies, gym, shopping, groceries, rent, entertainment etc., and analyse how you can cut down or control your unnecessary expenditures. Work out a practical budget and make a resolution to stick to it.

Until and unless you don’t know what you want to do with your money, how can you work out a plan and you keep yourself motivated? Instead of setting some general goals like ‘save money’, set some specific and manageable goals like saving five thousand rupees every month or setting an emergency fund of a particular amount within the next six months. You can also set long-term goals like paying off your debt, buying a house, car or investing in real estate.

Have you ever bought something and later realised it isn’t of much use or you already have a similar product? Well, most of us are victims of impulsive shopping, especially online, and end up squandering a major chunk of our money. To curb this habit, start questioning your purchases and try the ‘72 hour’ test. Whenever you like something, keep it in your shopping cart or make yourself wait for 72 hours. After a few days, you might even forget you wanted to buy it.

End your pay-check-to-pay-check lifestyle and stop using credit cards. Prioritise on saving a part of your income first and managing your expenditures from the rest of the amount. As business magnate Warren Buffet has rightly opined, “Don't save what is left after spending; spend what is left after saving.”

Keeping your savings in a bank account won’t give you much interest in the long run and hence, start looking for options that suit you (and your goals) to invest your money. It could be in the stock market, SIPs (Systematic Investment Plans), mutual, real estate or a start-up. Just make sure you calculate all the risks involved and remember to not place all your eggs in one basket.

Many of us burn a hole in our pocket every week by going out with our friends for drinks and food at a fancy restaurant, movies or just for a cup of coffee at an overpriced café. Instead of this, try catching up with your friends at home more often and you will surely end up splurging lesser amount without compromising on the fun quotient.

Amidst all this, make sure you do not turn too harsh on yourself as it would only wear you down in the following weeks. Also, do make a point to celebrate when you achieve your short term goals and pamper yourself. Saving money does not mean you have to sacrifice the things you like; it is about spending your money wisely and staying prepared for a rainy day.

(All images used here are representational)