“Do not save what is left after spending, but spend what is left after saving”, read it once again.” – Warren Buffet
With the new year just around the corner, it’s time for new resolutions and to get your goals set. We have together witnessed some of the most horrifying times in history in the past two years and have realised the importance of good health and immunity. While we recognize that our health should be our top priority, let’s not forget that finances are equally of concern too.
While growing up and even to this date, I watched my mother handle the expenses of our house. From spending for our daily needs to keeping a record of all the expenses, she takes care of everything. If at times the budget goes overboard, she chooses to cut off her needs to settle the monthly score. And that makes me think about all the women out there who have to give their desires a backseat because of this.
It is normal for everyone to desire and not only financial security but also a specific type of lifestyle. To do this, we must plan our finances and take steps to properly manage our money. Saving is the first step on this path. This helps us to save for expensive purchases, offers us money to invest for higher returns, and assures us that we can deal with emergencies. If you wish to save more quickly, consider the following five suggestions.
P.s. This is a lesson for me as much as it is for you.
- Create a budget.
Of course, this goes without saying, and I’m sure all of you are more pros at it than I am (I pretend to be). Everything financial starts with making a budget. So rewind and decide how much you need monthly considering school fees, groceries, utilities and other needs. Add some extra miscellaneous amounts. Set aside some amount for emergencies, travel, etc. List down all your needs and see where you can make the cuts to allow you to save more.
- Start saving regularly.
The mantra for saving regularly is to set short-term goals to last a long time. By this, I mean, to start your saving goals with small amounts. That is, if you start by saving 20 rupees per month, slowly and steadily, you can reach 500 bucks. This way, your target seems more attainable and easy to do.
- Prioritise your needs over wants.
I am a huge shopaholic and often tend to go out of the way and spend on items that I may not need at the moment, but which cost me adjustments for the next month. That’s why I have learned to prioritise things that I actually need. Using the 24-hour rule. By this rule, avoid buying non-essential, expensive items impulsively with a self-imposed 24-hour rule. This will give you time to think and reassess your decision.
- Start a part-time gig.
Today, no one can depend on just a single source of income. With rising needs and inflation, it is necessary to seek additional income from multiple sources. You can start this by taking up or starting any of your small businesses. Or you can do something on your hobby list. For example, if you cook well you can start your own small catering business. This will provide you with additional funds and therefore additional savings. Here are a few more ideas for you. (link to side hustle blog)
- Invest some money.
You might find ways to invest your money to help it grow even more. You can invest it in fixed deposits or other financial schemes. If you’re not sure how to invest your money wisely, it’s always a good idea to seek advice and conduct some research. When you feel more secure, you can consider choices such as health and life insurance.
Now open your expense sheets and start cracking your plans for 2022. Best of luck ladies!