Hey savvy savers! Ready to up your money game? LXME has your back with the ultimate guide to money-saving hacks. No boring budget talks—just real, actionable tips to make your money work harder. Let’s kickstart your journey to financial freedom, one hack at a time!
Right at the onset, let me tell you a secret- For you to become financially free and achieve your financial goals, trying smart saving hacks that can increase your money quotient two times over a period of 20 years.
These are not big pools of money that you need to save, but small drops that will fill the ocean slowly and steadily. There is a very narrow gap between you and your financial goals, and you could overcome it with a disciplined approach towards saving.
So here are our 5 saving hacks:
#1: Pay yourself first:
Saving should be planned and kept aside as a part of your monthly income. We call it a “Savings first” approach and suggest our investors to keep aside a minimum of 20% of their take-home salary/income for savings and investments. And wait no longer and invest as soon as your salary is credited.
Most people, tend to look at savings as residual cash left after meeting all the expenses and spends. But one must realize- your expenses and spends are infinite. “ Savings first” helps, because, you tend to budget all other spends and expenses as a part of your income minus savings.
In addition to this, for those who have a steady income, you can also easily plan your financial goals, as you are certain of your investible surplus for a longer duration.
Yes, Systematic Investment Plan, better known as SIP in mutual funds and other regular saving tools like monthly auto-debit towards a recurring deposit is among the easiest means of becoming a disciplined saver. These tools offer the advantage of setting aside a part of your income in an auto-pilot mode.
You just need to schedule a date, when you want the money to be deducted from your bank account. No hassle of login and investing every month. Just a few clicks and your disciplined journey begins.
#3: Make a budget for spends every month. Categorize items into essentials and non-essentials:
Review your spending for the past month and accordingly budget for the following month, and monitor them, to avoid overspending. Circle in red things that you bought but didn’t use. The expensive “gourmet vegetables” or “cheese” that had to be thrown out, the dress that you bought on an impulse and didn’t use. Keep a list of the wastages in your phone notes to be revisited each time you go shopping.
#4: Resist peer pressure and Impulse buys:
Counted among the top challenges towards becoming a disciplined saver. Peer pressure not only makes you overspend at almost any instance but could also send your financial well-being for a toss. While EMIs may look small, too many of them and the hidden charges and high-interest rates, leave very little for other essential and discretionary spends.
Your credit card could charge you as high as 36% per annum on your borrowing. Ever wondered, how big a corpus you could build with that kind of returns?
#5: Start saving small:
Good habits have to be nurtured and patiently tended to. Start by saving one day of your salary. And slowly add another day and then another day. This way you will not impact your lifestyle and yet slowly build the habit of saving. Within no time will you reach the goal of saving at least 20% of your monthly earnings. Remember the piggy banks?? It was among the earliest endeavor from your parents in order to inculcate the habit of saving.
Starting savings early has its own benefits. Among the biggest benefit is the extended duration during which your funds get to remain invested. Your invested corpus grows exponentially, thanks to the magic of compounding, especially over a long duration. Which is why the saying….
A penny saved is worth two pennies earned!!
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FAQs – Common Questions on Money Saving Hacks!
Q: What is the trick to saving money?
Automate Savings: Utilize LXME’s insights on the blog to set up automatic transfers to your savings account. Consistency is the key to building a robust savings habit.
Track Expenses: LXME recommends monitoring daily expenses. Use budgeting tools and apps for a clear picture of where your money goes, enabling informed savings decisions.
Embrace Minimalism: Learn from LXME’s blog the art of decluttering not just your space but also your spending. Cut out non-essential expenses to boost your savings.
Q: How can I save money daily?
Brown-Bag Lunch: Follow LXME’s daily money-saving hack and pack your lunch. Not only healthier but also lighter on your wallet.
Energy Efficiency: Implement energy-saving practices outlined in the blog. Simple habits like turning off lights and unplugging devices add up to significant savings over time.
Coupon Smartly: Discover LXME’s couponing strategies. Snag discounts and cashback deals, turning routine purchases into daily savings.
Q: How can I save money smartly?
Emergency Fund: LXME’s smart savings tip is to create an emergency fund. Be prepared for unexpected expenses, ensuring financial stability.
Invest Wisely: Explore LXME’s insights on intelligent investing. Make your money work for you by understanding investment options that align with your financial goals.
Prioritize Needs Over Wants: LXME encourages distinguishing between needs and wants. Smart saving involves focusing on fulfilling essential needs before indulging in non-essentials.
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