How to Start Saving Money in 10 Simple Ways?
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

How to Start Saving Money in 10 Simple Ways?

How to Start Saving Money in 10 Simple Ways?
  • 26th Jul 2022 |
  • 3,149

Have you ever been in a situation where you could not afford something because you once overspent on unnecessary expenses? Unfortunately, if you are someone who sometimes spends more than expected, you are most likely to come up short on mandatory expenses in the future.

If you also find yourself short on completing mandatory expenses or borrowing money from your friends at the end of the month, this blog is for you.

We will explain the benefit of saving a small amount every month and ten ways to help you do it efficiently. Savings can be held in cash or cash equivalents such as a deposit account, retirement pension account, etc.

10 Ways to Start Saving Money

Most people understand the value of saving money but wonder how to start saving money . Unfortunately, people often find it challenging to curb the habit of overspending and inculcate a discipline of saving money. But you need not worry; here are ten simple ways to start saving money :

  • 1. Practice self-control

One of the most critical steps to saving money is being determined to be financially disciplined. Once you develop a habit of saving, it can drastically improve your mindset, lifestyle, and finances. You can do this by tracking your expenses and avoiding temptations. For example, online shopping offers various products that might catch your attention. As a result, you are likely to get distracted and spend on items which are not necessary. To prevent this, you can stick to a shopping list and set a time limit for shopping online.

  • 2. Pay your debts

Financial experts suggest that paying off debt must be prioritized before other expenses as the borrowed money does not generate any interest. Limiting your financial obligations is crucial as it diminishes your savings and prevents you from accomplishing your goals.

  • 3. Create a budget

You can begin by creating a budget. A budget is a customized plan based on your income, expenses, and goals. It can help you develop financial stability by allowing you to spend within your means and evaluating your spending habits.

  • 4. Record your expenses

Keep track of your expenses and note them down, if possible. This step ensures that you have a record of your costs to regulate your expenditure. As a result, you can identify and eliminate the unrequired and wasteful expenses.

  • 5. Categorize your expenses in needs and wants

An efficient budget categorizes your expenses into needs and wants. This differentiates the costs necessary for basic living and healthcare from those on your wishlist but is not mandatory. Nevertheless, eliminating unessential expenses is a critical step toward saving money.

  • 6. Cut your unnecessary expenses

Once you have grouped your expenses, you need to cut the unrequired costs. We often spend on items and services that are not essential, for example, a gym membership that is not being used. You should discontinue such services to stop overspending and maximize your savings.

  • 7. Set a savings goal

It is your dreams and financial goals that keep you motivated. So, define your financial objectives and plan accordingly. Then, you can begin to save for your short-term goals and eventually prepare for your long-term goals. Experts advise making a monthly target for beginners.

  • 8. Prioritize your financial goals

Divide and prioritize your goals into short-term and long-term goals according to their duration. Then, you can use different tools to save money for your purposes. For example, a savings account or A Certificate of deposit (CD) can help you accomplish short-term goals, while Fixed Deposits, stocks, insurance

etc., are used for long-term purposes.

  • 9. Increase the value of your money

Now that you have started to save your money, you can begin to invest your savings to increase the value of your savings to beat the inflation rates and generate more wealth. Numerous investment tools are available in the market, such as Mutual funds, stocks, bonds, ULIP, savings plans, derivates, etc. Choose the right fit for you, considering the factors such as budget, risk-taking appetite, tax assessment, and your financial goals and begin to invest early.

  • 10. Keep track of your progress

Keep a check on your budget and savings regularly. You can make modifications according to your requirements and preferences. Explore new ways to save money and teach them in your financial planning.

By saving money, you can get financial freedom and ensure a better future for your children. Saving money involves disciplined habits, starting early, and prudently stepping forward. Weigh the pros and cons and start saving your hard-earned money now!

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

What are the Best Short-Term Investment Plans with High Returns?

Importance of Portfolio Management

Investment Options for NRIs in India

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

How Do One-Time Investment Plans Work?

How to Cancel ULIP Policy?

What are the Best Investment Options for Beginners or Amateur Investors in India?

Basics of Guaranteed Savings Plan

Different Types of Endowment Plans

Early Investing and the Power of Compounding

How to Plan Savings from Salary?

Creating a second source of income with life insurance

Top 10 Investment Strategies to Create Wealth

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Best Investment Options in India in 2022

Learn About Safe Investments with High Returns in India

3 Tips to Buy Guaranteed Savings Plan

What are Some of the Safest Investment Options in India?

Is This The Right Time To Invest In ULIP? Why or Why Not?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

How To Invest Money In ULIP?

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Savings vs Investment: Know the Difference

Top 6 Investment Plans Available in India

Why Should Parents Invest in Endowment Plan?

Difference Between Passive and Active Investing

Customising investments to manage your wealth

Short Term and Long Term ULIP Plans for Wealth Creation

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Learn About Safe Investments with High Returns in India

What are the Best Investment Options for Students in India?

Are Gains from ULIP Sale Taxable?

Safe Investment Options with High Returns for FY 2018-19

How to Increase Net Worth Along with Family Protection

Why ULIP is Better Investment for Long-Term Wealth Creation?

Difference Between Guaranteed Savings Plan and ULIP

What are Deferred Savings Plans?

How to Plan Your Child's Education - A Step-by-Step Guide

Top 5 Principles That Need to be Followed for Wealth Creation

What's Better for Your Child's Education? Child Plans or Mutual Funds?

How Much Wealth Can You Create from ULIP in 10 years?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Planning for Your Child's Higher Education? Explore These Investment Options

ULIP Plan as a Gift

Successful Financial Planning for Urban Women

How To Track ULIP Performance?

Best Investment Options to Cover Your Child's Education

What is a Savings Plan and What are is Benefits?

Complete Savings Plan for Low Income Earners

How to Fulfil Your Financial Goals in the Next 10 Years?

4 Benefits of ULIP Fund-Switching Feature

How to Make Your Financial Portfolio?

What is better - Guaranteed Savings Plan or Fixed Deposit?

Are Money Back Policies Helpful? A Complete Guide

What is the Importance of Saving Money?

Top 5 Investment Options in 2022 for Healthy Returns

What is ULIP Renewal?

Savings Plan for Grandchildren

Endowment Plan vs Fixed Deposit?

Building wealth through regular investing

Why Should You Invest in Term Insurance And ULIP?

Benefits of ULIP as a Child Insurance Plan

Why Do You Need A ULIP Plan - All You Need To Know

4 Important Tips to Maximize Gains with ULIP Investments

How To Diversify Portfolio In 2022?

What are the Best Investment Options For Females?

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

ULIP Benefits You Can Avail from Early Investing

How to Manage Your Portfolio Like a Professional?

ULIP as an Investment for Your Child

How to Manage Inheritance Money?

How Does an Endowment Plan Work?

Things to Know Before Buying an Endowment Plan

How to Plan your Investment to Achieve Periodic Financial Goals?

Planning Financial Goals and Objectives of Financial Planning

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

What are the Best Investment Options for Young Adults?

Long Term Savings Plan - Best Savings Investment Plans in India

Investments Options to Buy a house in India

Which is a Better Investment - Mutual Funds Or ULIP?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Asset Allocations in ULIP - Know the Top Benefits

Best One-Time Investment Plans in India

What are Mutual Funds?

Can ULIP Help in Achieving Short-Term Financial Goals?

Factors Affecting Stock Markets

What are Tax-Deferred Savings Plans?

ULIP vs FD - Which is Better and Why?

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

Receiving regular payouts at various stages of life

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प