Whether you’re an impulsive buyer or someone who lives life king size, you might have often realized that you are overspending on things. Especially, right now, with the prevailing mood in the country being that of fear and insecurity because of COVID-19, you may also be indulging in panic buying. Also, it is being predicted that people will face economic consequences in one or the other way in the months to follow. That is why, you cannot afford to let your hard-earned money go down the drains by overspending or not saving wisely.
From maintaining a spending journal to putting money in a fixed deposit using an FD calculator, there are many things you can start doing if you want to save money better.
Let us tell you a few things that you may start doing to save better. Read below:
- Maintain a Budget and Stick to It
Overspending usually occurs when you do not have a clear idea in mind as to how much you wish to spend in a given period or for a specific purchase. That is why, to avoid overspending, develop the habit of maintaining a monthly or weekly budget. Even when you’re planning to make a purchase, always start with setting a clear-cut budget, keeping in mind your financial position. A budget will ensure that you can muster some self-control and avoid making any unimportant purchase or from going overboard while choosing anything.
- Pay Off Debt
If you have any outstanding debt or loan, challenge to first rid yourself of that. Doing this will take a lot of burden off your mind. Moreover, when you set a goal of paying off your debt in a specific period, you will be able to discipline yourself in avoiding any kind of overspending during that period. Following such a routine for some time may even inculcate the habit of spending wisely in you and help you save money in the future.
- Save Money Through FDs
When you have money in your account, you are tempted to make unnecessary purchases, which you may regret later. It may rip you off your hard-earned money and may leave you with no savings for emergencies or essential purchases later. That is why, to avoid such a situation, you must put your money in fixed deposits. It will ensure that some part of your money remains separate and grows over time with the accumulation of interest.
To decide how much sum to put in a fixed deposit, you can use an FD calculator. The benefit of an FD calculator is that it will give you an idea as to how much your money will grow over a fixed tenure. Using an online FD calculator also helps you determine the maturity amount you will receive by applying compound interest on different periods such as monthly, quarterly, half-yearly or annual. When choosing where to put your money, go for reputable and reliable banks such as Axis Bank, which offer one of the best interest rates for FDs. Also, remember to consider the tenure and other important aspects as well.
- Maintain a Spending Journal
Over a week or month, you make so many payments, including both online and offline, that it may be hard for you to keep track of all your cash outflows. In such a situation, even if you may be overspending, you may or may not realize it.
To correct it, you must maintain a spending journal. It can be a small pocket diary or digital notes on your phone itself. Add the expense category and amount each time you shell out money either through digital payment or otherwise. To analyse your spending pattern, you may even compare your cash outflows in different months.
These are the many ways to start saving more. While small steps will prevent you from overspending, other steps such as putting money in a fixed deposit after using an FD calculator will help you save and grow your wealth. Think and devise new ways on your own to save more, so that you stay away from regrets in life.