“A penny saved is a penny earned”. This is how smart people get rich. Even if you say that you are not really looking to get very rich, at least all of us want to be financially independent after retirement. Of course, for this to happen, you must start saving early. You might have already started saving money based on the regular tips that you have either read or heard from the others or learnt through your own experience. Have you ever thought of creative and smart ways to save more money and become rich?
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Here are a few tips that smart people follow to save money on a regular basis and become rich:
- Income vs Expenses: Keep an account of your monthly income vs your monthly expenses. A salaried person will have a regular income, based on which he can plan a budget. But for a businessman or an individual who has varied monthly income based on his sales or services, it is difficult to plan a regular budget based on that income. Whatever the income is, plan your budget in a manner that you would be able to save some money after all your expenses. These savings might come handy to you in case of emergencies or even if you have an unexpected expenditure anytime in future. Think aloud!!
- Save First, Spend Next: Follow this golden rule to save more as well as become rich!! Remember this formula: Income-Savings=Expenses. It might seem tough initially, but it is just like sowing a seed now to enjoy the fruits later. Save a portion of your income regularly, or invest it in a scheme where you can grow that money over the years. This is a simple, yet a very smart way to become rich soon.
- Save on all your bills: Reduction in every expense that you make a large difference in the amount that you save every month. This can be easily achieved by saving on your bills, your credit card expenses and such small changes.
- Electricity bills: Save power, save money!!
- Entertainment expenses: Cut down your Cable, gym and club memberships, Monthly subscriptions for entertainment.
- Transportation expenses: Use public transport, carpooling and rideshares to cut down on your transportation and fuel expenses
- Use Coupons: Use coupons and discount codes to save on your purchases. CouponoBox offers coupon codes and discounts on anything that you purchase in the US. It also offers you a variety of stores and categories to choose from.
- Use Cash instead of Plastic Money: Keep an account of every note that you spend when you purchase. Credit and debit cards not only charge high rates of interest and transaction costs, it lacks that value for money that you feel when you spend through cash. This helps you save more.
- Food and Grocery expenses: Buy only the amount of groceries that you need, see if you can buy in bulk and get discounts. Grow your own garden of veggies and fruits, cook at home, pack your food to work, and eat fresh. Avoid dining out and save money.
- Generate more income: Try generating income from more than one source. Try freelancing, consultancy, or invest in mutual funds or equity where you can increase your money. Rent out your vehicle when you don’t use it and generate income; generate rental income from various sources and make money. Save as much as possible and be rich!!
- Spend only on your priorities: Make a list of your priorities and spend only on useful items. Spend only on necessities, not on luxuries; spend only on needs, not on wants.
Set a monthly budget based on your income, family size, needs and saving habits. This way, you can save, invest that in a place where you can increase your money and grow rich soon. Plan smart and save more. Grow rich!!