There are so many options of luxury lifestyles and they are so attractive that we cannot refuse and want to avail. And all these come up with a price tag and take no time to take away all the hard earned money. Nowadays, the effort that we put to earn the money equals the effort that we apply to save the amount.
We all want to save and enjoy that luxurious lifestyle or trip at the same time. Managing both at the same time is a tough task and hardly done by anyone. Well, saving doesn’t need a rule book; all it takes is planning and drawing lines between the necessity and luxury. If one can achieve this part, an individual is good to enjoy all the perks and save at the same time.
Here is a list of things, an individual should be spending to avoid useless expenses in future and cover the financial needs if required.
- Reduce dining outside:
Eating in café and restaurant is usually expensive when compared to the food cooked at home as outside food involve service charges and taxes. This makes the food quite expensive. But keeping the Instagram culture in mind, not eating outside can out a person in FOMO (fear of missing out) mode; which is commonly seen in youngsters.
To balance this equation, a proper routine should be fixed e.g. visiting a restaurant only on weekend of twice a month. Other than that, sometimes we get cravings of certain dishes, which can be easily beaten by cooking the meal at home. In the era of YouTube, searching a recipe is not a big deal. Just a few searches, purchase the ingredients and you can cook the same dish multiple times without burning a hole in the pocket.
- Health is wealth:
You may have lots of time and money but then you are not well which simply means a waste of money and time both. Always keep in mind that health is the biggest asset that a person should take care. To begin with, buy some good health insurance to stay secured for the time when you may not have enough money and good health.
Take a doctor appointment and go for a clinical check up to check the small health details which might pose a severe health risk in the future. Do whatever it takes to stay healthy and happy.
- Credit card management:
Owning a credit card doesn’t give you license to spend in a reckless manner. And if you indulge in such an activity, you will out of cash in no time. You should always know the basics before using it and there are certain rules that you should compile for yourself, which include:
Make a purchase only if you will get enough money by the end of the month (period of payment) to repay the debt. Failing to do so can land you in trouble and eventually you will be will be paying late fine instead of saving the money.
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Never withdraw the amount directly from your credit card as the tax charged on the transaction is a huge amount. And even if you have to do so out of choice, then first transfer the amount into your saving or current account and then withdraw the amount.
- Learn a few financial lessons:
It is the art to learn about the working of money. The lesson is way more than savings, and involves earning, managing and investing it.
For people who have just started the basics, one should know the difference between an asset and a liability, which will give a clear view of things where money should be invested. For instance, purchasing a car is a liability as the price decreases with time, also it consumes fuel. On the other hand, investing in a real estate will be proved as an asset as the price never decreases and it will act as a reserve.
- Start Investing:
Investing is found to be one of the best ways to save the money as well as multiply the amount. However, sometimes it might appear as a risk. Hence, always make a point of doing a proper research before investing.
There are plenty of options to invest on which include stocks, startups, bonds, real estate, mutual fund, etc. Learn about the facts and figures and in case you are not able to accumulate enough information take assistance from a financial advisor or a fund manager.
Despite the position in the financial journey, it is possible to bring the financial life on track. The first step in the proper direction can help you turn the things in your favor. However, taking that first step is the big deal.
Try searching the relevant way to start, make a bill or list of monthly expenditure and figure out where you should start cutting off the money from to start saving. Savings cannot be done is a day and require regular effort.