It’s a dream of millions to have a big bank balance as savings, few luxury cars and own house of course. But for that, you will need two type of sources either your salary is so high that you don’t need to see a price tag or a handsome amount of money to be kept aside for these luxurious needs.
Today, I will discuss how anyone with a steady monthly income of more than say Rs. 65,000 can save Rs 20,000 to Rs 25,000 per month.
So, the amount which you want to save is large, so the saving and source of income need to be strong enough. There are some traditional methods which need a lot of effort and undisputed discipline for savings. Some of them are as follows
- Track your daily expenses and try to reduce
- Create your budget (daily, weekly, monthly and sometimes yearly)
- Say no to impulsive purchases no matter how strong your desire is?
- Reduce monthly bills which mean to postpone your consumption for the future well being.
- Curb your spending as much as you can.
- Earning extra income from Retirement saving plan
As you can see, the traditional method only focus on ways you can reduce the usage of your income in order to save more. But, it is so not done because being with goods earning too can’t help you to live lavishly.
Instead of reducing the usage why don’t to focus on new ways to increase and find some extra money to build a good savings? Some of newer ways to get some extra stream of income can be as follows.
Where to find extra monthly income to do savings?
- TRY GETTING FROM WORK
- Raise from work
- Since you have been used to live on less before, so it is easier and wiser to put the raise in the bank. The question here to be asked to yourself, do you need this extra income or does your savings need them more?
- Bonus from work
- Did you get a bonus from work? Wonderful! Deposit this money in the bank too. As it is extra money, which you didn’t count upon previously and don’t need for living expenses currently. That’s why is called BONUS to your normal salary.
- Overtime from work
- In few jobs, one can volunteer for some extra time. If you consider working a little overtime each and every week you can treat yourselves with a special sacred income.
- Some others could be
- Extra-large commissions
- Judicial use of benefits and reimbursement schemes
- GET IT BY YOURSELVES
- Sell items you don’t want
- In the usual time gap, you should go through old belongings and consider the things which are no longer in need. Sell those items instead of throwing them. Nowadays, many online platforms to sell used products are available, which allows you to sell anything within few clicks. It will help you get a few more bucks and rid of with unwanted stuff.
- Rent out your extra space in the property
- Nowadays, it’s very expensive to live in some areas where the cost of living is skyrocketing and it’s very common now a day to let or sublet one of your extra bedroom or your part of property or apartment. This could potentially net your income towards your savings.
- Invest in some side business
- Use your free time and money to start a simple side business, like babysitting and dog walking or in anything you are good at. If you enjoy making potentially new marketable products, try selling it on a popular craft online platform. Popular items typically get sold easily which include clothing, beauty products, art prints, and jewelry articles.
- SOMETHING WHICH CAN BE EXTRACTED OUT OF EXPENSES
- Look for an expense to cut and save that money efficiently
- Review your debt payments properly and try to say NO always for debt.
- Track your spending and create a spending plan which will help you to allocate the available resources to all the required needs.
- Be smarter when it comes to food. Everyone wants to enjoy good and delicious food, but it is advisable to eat and pocket-friendly venues. Café, retro-pubs, should be avoided on a regular basis if you visit more often.
- Spend less on entertainment. It is an unavoidable Head of expenditure amongst youngsters. But can be easily reduced as now many online sites offer free movies, songs, calling options, etc. one can prefer doing that instead of going into multiplexes.
- LET’S SEE HOW GOVERNMENT CAN CONTRIBUTE.
- Tax refunds
- If you get a tax refund or any tax rebate it increases the sum in your savings. To find out ways by which you can pay less tax, can also get a tax refund or qualify for a larger refund, contact your tax advisor or someone you trust.
- Tax assessments
- If your own property values have fallen significantly in your locality, urgently make sure that your tax assessment value is fair. If not, do apply for reassessment. If it’s a price drop, down, you can save a lot in tax.
- Claim your expenses
- If you or your business tax computations are not done by any professional like a CA or someone, you may be losing on big savings. Many of you might think that it’s very pocket heavy, to hire one professional just for tax computation, I must tell you, my friend, it is more inexpensive then to pay to the government.
5. SOME ASSET MAKING INSTRUMENTS
Some of the instruments are available for the general public where they can pool their savings without exposing too much of a risk. Some are as follows
- High interest saving account
- Term deposits with commercial banks
- Tax-free saving accounts in commercial banks
- Retirement saving plans with a different financial institution
- Pension fund schemes