The most unwelcome byproduct of the growing industrialization is rapidly increasing prices. Not only is it becoming increasingly difficult for people to afford everything, but it has also made saving money a herculean task. This leaves the common man in a dilemma involving deteriorating his lifestyle to save money or not to save at all.
Fortunately, we live in an age where we have much more resources and technology to cope up with these problems. Saving money for the future is a step-by-step, long-term process and requires systematic planning. Here are five best ways to save money for the future.
1. Track your expenses
The first step to saving money is tracking your expenses. By doing so, you will identify where the money you want to save can come from. Many people use a diary for doing the same, but it can’t be there with you all the time, and you may forget the small expenses by the time you get home.
There are a plethora of expenses tracking/calculator apps on Play Store, iOS and Windows Store. Not only can calculator apps store how much money you spend on what but you can also group them into convenient categories which should enable you to decide which category you spend the most on and curb the expenses.
2. Set your priorities
Set aside a particular amount of spending in each category like groceries, eating out, clothes, bills, house maintenance. This will help you to prioritize spending in each category, hence refraining you from spending incessantly.
It will also help you to develop a utility-based approach towards spending. This will also make sure that you spend money on things you really need which will dramatically alter your expenses to the extent that you may end up saving even from the amount you had initially set aside.
3. Invest more
Investments are one of the best ways to save money and keep your future secure, but they are widely ignored because people tend most money in the present. The money set aside for saving should not be left idle; it is always better to invest money for future returns.
Fortunately, investments can take numerous forms suited to your own unique capacities, depending on how much you manage to save. They can be classified into deposits (fixed, recurring, etc.), policies in an insurance company, real estate, a piece of land, or shareholdings.
5. Stay privileged
Club members of various banks, holders of specific credit/debit cards, and digital wallets get special discounts, cashbacks, and bonuses. From free movie tickets to hefty discounts on flight tickets and hotel bookings, you will get special privileges.
Identify your frequent areas of purchase and get a card/service accordingly. Some of them are absolutely free. You can only begin to imagine how much you’re going to save. You can also get insurances for everything that is expensive so that damages are covered.
6. Cut any extra expenses
Stop all the unnecessary newspaper and magazine subscriptions you strive and fail to catch up with. You anyway get updated about news through social media and the pages that you have liked and followed on Facebook and Twitter. You can save money by selling articles that are unused, outdated and take up unnecessary space.
Make sensible decisions. If you take cabs and commute by tube most of the time, you shouldn’t buy a car only to use it twice a month.If there are items you buy frequently, buy it in bulk at once. Altogether, it will save you a lot of money for your future.