Save more to buy more. Every extra saving comes along with extra buying power. You surely do not want to miss a chance to save more? Remember money attracts money and every penny saved is a penny earned. We are here to unfold the savings secret to you. The tricks we reveal will give you a chance to not only save more money in the process but also start building wealth to achieve financial freedom. So get ready to practice saving as a habit.
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Why is saving money a challenge?
Savings involves sacrifices or rather treat it as an opportunity cost of fulfilling your need. Savings demand that you forego your lower priority need. It squeezes your purchasing power and limits your impulsive buying behavior. It keeps a good check on the money balance left with you to meet your needs for the complete month. It is a sort of constant struggle between what you want to do versus what you should do. It involves a practical approach while ignoring your emotional quotient.
Saving money is a challenge because of below reasons:
- Last-minute sudden expenses blow off the savings.
- Emergency needs.
- Social gatherings expenses.
- Maintaining status at times may drain your savings.
- Excessively impulsive buying behavior may also deplete your savings within minutes.
Thus, saving money is really difficult but not impossible. We will understand it more in detail.
Best ways to save more money without sacrifices
Save more money like never before. We will tell you the best of the ways to save more money quickly and easily. It is not rocket science. Just follow the below ways and let your money double in no time.
1. Buy more save more
Did we tell you to buy more to save more? Yes, you heard it right. You may apply this strategy for a lot of things but groceries top our list.
Maintain a list of groceries you need, and place a bulk order only by the start of the month. Now before that, do check on various apps possible and see which one gives more discounts, especially on bulk purchases. Apps like Bigbasket, Jiomart, Flipkart, Amazon grocery, check which one gives discounts as well as attractive cashback. Savemore online while getting your stuff delivered at your doorstep.
Buy more and save more also applies to buying clothes. Some of the clearance sales or seasonal discounts are worth a try. The discounts and offers are usually designed in a way, that only bulk purchases would save you more. So, avoid or postpone buying clothes randomly, unless you are in urgent need of them.
- Hypermarket or Supermarket
Buy in a marketplace that offers several products under one roof. This gives you the opportunity to club various products to avail the best discounts or offers.
- Lifestyle products
Bulk purchase of products like soaps, cleaning products, sanitary products, etc will all save you more money through discounts or buy 1 get 1 free offer.
2. Save taxes
Taxes are a pain; they squeeze your disposable income. What if we tell you the best ways not only to save taxes but also to use the tax money to build your wealth? We simply need to take advantage of the tax-saving option available. So, instead of paying the large chunk of money to Government, start creating wealth out of it. Saving taxes is very easy you just have to choose all or any one of the below methods, and that’s it.
- ELSS funds
Equity-linked saving schemes are mutual funds to lock your hard-earned money for a period of 3 years. The rate of return ranges between 15 % to 21%. Investment under these is considered under 80C deductions. Choose those ELSS schemes with higher returns, higher credit ratings, and historical returns of more than 15% in 5 years. Example – You invest Rs 50,000 as a lump sum or in the form of SIP in any of the good ELSS funds, the entire Rs 50,000 will be reduced from your taxable income. Thus, the overall income tax amount will reduce.
- House loan
Already taken a house loan? No issues, rather show the interest charged on loan annually under Income Tax Deductions to reduce your taxable income.
Still, living in a rented house? Use the rent paid to save more on taxes. Show the annual rent paid under HRA. In metropolitan cities, the rent ranges from Rs10,000 to Rs 30,000 per month while in cities like Mumbai it goes as high as Rs 60,000 per month. In case the monthly rent paid is less than or equal to Rs 8,400, then you do not need the landlord’s PAN id as verification proof but if it exceeds Rs 8,400, then you need your landlord’s PAN id. Save huge on taxes by reducing your taxable income.
- Children’s tuition fees
If you have school or college-going children then show their tuition fees under 80C deductions upto Rs 1.5 lakhs. Parents living in Bangalore or Mumbai know that the capped limit is way lesser than what they actually pay annually as tuition fees.
3. Save more using apps
Playstore is flooded with apps every minute. To survive the cutthroat competition companies offer lucrative discounts, rewards, cash back, and free products or services to customers for app downloads. The customer acquisition rate is pretty high, and marketing or advertising expenses are at all times high. Thus, refer and earn program is the best option available to app owners. This way they acquire customers while saving on their acquisition cost. In return, they simply offer something of value either in cash or kind to the referrer. Many apps offer loyalty points or rewards so save more on rewards in various forms. Take advantage of your social network to earn from these refer and earn programs. Lately, it has been observed that shopping through apps helps you save more as compared to shopping offline. You are sure to save more expenses incurred in commuting, your time, energy, and most importantly the discount part which is higher in terms of shopping through the app online rather than offline.
4. Save more through passive income
Create multiple passive income sources to multiply your income, as a result, you will surely save more. All you need to do is find some extra time in your daily life and the skill that you are good at. Below are some of the passive income options:
- Painter/Artist/Dancer or whatever your passion is
- Music teacher
- Yoga instructor
- Stock trader
5. Save more through the right investment
Invest your extra saving in the right channels to help you multiply your money. Keep saving and investing.The only thing to keep in mind is to remain invested for a longer period to take full advantage of the compounding effect.
- Mutual Funds
If you have aged by your side then invest in highly aggressive equity-based mutual fund plans. Sit tight for a longer duration and let the compounding magic play its role.
Try not to withdraw PFs even if you quit your job. Leave it for your retirement planning.
- Quality stocks
If you know about stocks then buy fundamentally strong stocks when it dips. Keep accumulating quality stocks with a good dividend payout ratio to earn regular dividends.
If you are keen on accumulating gold then buy it when it dips. You may buy gold even in online dematerialized form.
All the above ways will help you save more. Happy savings!
Savings went up by 25% for almost all people across the globe due to pandemic restrictions, WFH, and lockdowns. Savings is more of a disciplined behavior, the more you practice the more you become perfect.
Let us know if we in any way helped you to save more?