'A part of what you earn is yours to keep.'
This line from the famous book 'The Richest Man in Babylon' by George S. Clason explains a lot about why we should save money for the future. He claims that most of our income goes to other people like our landlord, food vendors, shopping store owners, etc. He says to grow one's wealth; it is essential to save money, pay yourself first, and pay others who make your life easier.
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So let's look at ten strategies to save money from salary:
1. Automate Your Savings
The moment your salary arrives, it is advisable to transfer at least 20% of the amount to a savings/investment account. It's recommended to automate this process to avoid missing it through a systematic investment plan and earn interest on savings.
2. Make a Budget
Saving money is all about keeping track of your expenses and controlling them. It is good to make a monthly budget by dividing your expenses into major categories and sticking to it. This is a great way to avoid overspending, and you'll never have an empty wallet at the end of the month.
3. Say NO to Debt
The idea is to earn interest in savings so unless you have a good enough reason to take a loan, don’t receive one.
4. Avoid Late Fees
Late fees are an unnecessary expense generally caused due to a lack of systematic planning. If you often miss out on payments, get an app that can remind you or automatically make the payment on time.
5. Pack Your Lunch
Taking lunch to the office can do wonders to wallet. You save money by not eating out a lot, but it’s also good for your health.
6. Use Public Transport
Finding the cheapest and most convenient way to get to work can also add up. If you have a decent public transport facility, avail it as often as possible.
7. Go Energy-Efficient
Switching off all electric appliances and fixtures when not in use helps save more money than people often believe. Do good for the planet and yourself by switching all lights to LEDs and being cautious of electricity consumption when buying new gadgets.
8. Buy in Bulk
Things that you need regularly and have a long shelf life should be bought in bulk. It not only saves money because of larger quantities but also reduces the need to visit stores frequently. This means less money spent on travel and less impulsive buying.
9. Party at Home
It is great to have a good time with your friends and colleagues in a while. However planning parties at home instead of going out can save you a lot of money on food, drinks, etc.
10. Avoid Addictions
Habits like drinking and smoking eat up your health and energy and your wallet. Avoiding these as early as possible is probably the best thing you can do for yourself.
Keeping a track of your daily expenses and choosing to spend wisely can go a long way in helping you save effectively and efficiently. Remember that every rupee you don't spend, you save.
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