At the end of the month when we sit down to calculate our savings and expenses for the month, we often observe that our expenses have extended our savings no matter how hard you try to reduce your expenses. While spending money we might feel their importance but later we are actually guilty of wasting money. Due to these overspending habit or expenses we somehow compromise with our savings. So today I would like to share with you how to stay committed to your monthly saving goals.
Spending rigorously will just give you satisfaction for short term. But when you will look back after few years your satisfaction will turn in guilt. Time cannot come back and their would be no point blaming your stars or yourself. Now if you would have saved some money monthly then obviously you would have been rich.
If you wanna stay committed to your monthly saving goals then you will control your monthly spending’s and also need to be in discipline. Here are tips to stick to your savings that will help you in controlling your spending’s.
What are you Saving for?
One question that you must ask yourself is what are you saving for? It is very important to evaluate what is the main goal behind your saving. Once you know the reason then you can plan and evaluate how much saving is needed. Now that you know how much you need to save then your next step is to select the investment option or instrument.
Your goals can either be short term or long term depending upon the type of goal you need to select the investment option. Like your loan term goal could be retirement plan, buying a house then you can invest in PPF (Public Provident Fund), mutual funds etc. While your short term goal could be buying a car, going for holiday then you need to invest in recurring deposit, liquid funds etc.
Also Read>>> Top 10 Best Monthly Income Plan for Investment
Choose Savings Over Spending’s
It would not surprise me if you are the one who prefer spending over savings. Lot of people have this habit of spending more and saving less. Due to which people end up reducing their saving potentials. Since when you will spend first then you not be left with enough money to save.
One of the most ideal situation is that you should firstly save money then plan for your expenditure. It is very important to keep your savings aside and let it remain untouched under any circumstances. To stay committed to your monthly saving goals their is an option which will ensure monthly savings. You can ask your bank for a SIP it means bank will automatically transfer money from your account into the savings account.
Design Financial Blueprint
One of the most simplest way to stay committed to your monthly saving goals is to design financial blueprint. Since the ratio of expense and saving is 70:30. It means our monthly expenses are higher due to house rent, electricity bill, water bill, food, lifestyle etc. The rest what is left is for saving and investment.
Manage Your Debt
In order to stay committed to your monthly saving goals it is very important to manage your debt. Now to manage your debt you will have to manage your credit cards. Since credit cards leads to reckless spending’s and also increase unplanned spending’s. If you taken loan from a bank or from your friends. Then you should pay the loan back first since the interest on the loan will increase with the delay in time. It is even seen that the interest rate on loans is higher than investment plans. Hence you should first focus on paying loan back rather than investing in any investment option.