How to Save Money Efficiently

Does the end of the month spell financial struggle for you? Do you find yourself looking to borrow money from friends, quite frequently, in spite of having a better income? If yes, then it is high time that you start a healthy saving habit.

Indian banks such as HDFC, ICICI, SBI, Vijaya Bank etc. offer a plethora of recurring and fixed deposit options that you can opt for, to save money efficiently. These savings can later be used for pursuing your financial goals. 

However, there are certain other steps that you need to take to ensure you have the savings game right. 

Money saving tips: Here are a few ways in which you can start saving for a better future.

• Track your expenses: Before you get into saving, start keeping track of your spending on a daily basis, to get an idea of how you spend your money. Keep a track of everything - your daily expenses like travel, groceries, food and monthly expenses like rent, credit bills, EMIs etc. Reviewing your bank statement can be of great help in tracking your expenses, especially when you transact online rather than making cash payments.

• Set up a budget: Now that you know where your money is being spent, you can organize your spending in a budget format that could work out for you. The budget should cover important points like, how you're spending comes against your income; so as to plan on your expenses and limit the overspending. Be sure to factor in additional expenses that may not come on a monthly basis like medical emergencies, car maintenance etc.

• Savings plan: It's now time for creating a plan on how to save money. Set aside 15-20 percent of your income for savings. Sometimes your expenses can creep into your savings and that is exactly what you need to cut off. It is the non-essentials like entertainment, restaurants bills etc., which you need to keep a close watch on, for keeping expenses under control.

• Set goals: Decide on how you envision utilizing your savings in the future, say for example - on a vacation or for the down payment for that new car that you always wanted. You can even classify your needs based on short term & long term goals. For instance - 

o   Short term goals

§  Car down payment

§  Vacation with your family

o   Long term goals

§  Financial plans after retirement

§  Your child's education

• Prioritize: You also need to prioritize your savings. This will give you an idea on what to save and when to save. Say, your child will be joining college soon, then you will have to start saving accordingly.

Follow these tips to manage your money efficiently and give your family and yourself the lifestyle you always wanted! Take your first step towards savings, by opening a savings account here.