6 Tips on How to Save Money on a Tight Salary

comments (0) July 21st, 2019     

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Sandya35 Sandya35, member
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Did you hear of the 50/30/20 rule? 50 percent of your salary should go into necessities, 30 percent should go towards discretionary items and the remaining 20 percent should go into saving. 

In this article, I will share with you, 6 hot tips on how to save that 20% of your salary with ease and a little bit of work. 

  1. Don't Save What Is Left

To quote Warren Buffett "Do not save what is left after spending, but spend what is left after saving." As soon as you get your salary, if you transfer 20 percent of that into a second bank account (for which you do not get a debit card or a checkbook) then you can budget your expenditure with what you have left...and it will be possible. But, if you try to spend, and save what you have left, you will always end up spending on things that you could have avoided like the Starbucks coffee after work or the extras not on your grocery list. 

  1. Stack Your Receipts

Ever hit the end of the month thinking "Where did all my money go this month?" We tend to spend money on things without really realising it. So tracking your expenditure through saving money apps like Daily Expenses app, Spending Tracker app etc. or stacking your receipts and running through it at the end of every month helps you see exactly where your money is going and where it is possible for you to cut costs.

  1. Save Small 

What your saving for might seem impossible to you if you look at it as a whole. But break it down and set smaller goals. Start early and start small. Every drop of water makes an ocean and so the little things you do today will yield bigger fruits for you tomorrow. Setting small possible amounts aside will help you save in the long run as opposed to trying to set aside larger amounts of money which you will find difficult to keep up with.

  1. Hit Unsubscribe 

Shopping apps trick you into subscribing to their emails the minute you make your first purchase on them. From then on, it's an endless list of discounts, offers or products you absolutely must have. These emails religiously spam your inbox and vola!! We fall bate and start spending on them- "Look this umbrella is on 30% discount and it will start raining next month, let me get it."  forgetting the umbrella you already have at home! So hit 'unsubscribe' at the bottom of the email and save yourself from these luring expenditures. Apps like unroll.me will help do just that! 

  1. Credit Card Bait

With the rise of credit cards, it has become easy to get what we want right away regardless of whether we have the budget to pay for it or not. But remember that a credit card's interest rates are high, which makes what you bought more expensive than it's MRP. So if you didn't have the money to buy it in the first place, adding interest to it is probably not the smartest thing to do to your finances. 

  1. Free Events 

 

Entertainment does not have to be expensive. You might feel like you are tied down because of your shoestring budget but if you broaden your horizon, you will find that there are a number of economical solutions. You could create a group with like-minded friends to meet up once a week to dwell in a hobby or play a sport, you could also sign into websites like bookmyshow.com to help you find economical or free events of your interest near you, plan a potluck lunch with home cooked food, organise a walking tour of your city for yourself, visit free museums or the zoo or just have a movie night at home with friends.

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