Curb your unnecessary spending to save and grow money

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Saving money is very necessary for everyone. If you have savings, then you can support your finance during pandemic like Corona. however it is not easy task to save money. For this, you have to curb your unnecessary expenses. Otherwise you will not be able to save money. You can save money easily when you don’t have much problem in your life. 

Just think about current situation. Coronavirus has spread all over the world. Millions of people have died. Business has come to a standstill. And several people have lost their job. Just think! Can you save money in such a situation? I think it is very difficult. One thing that you can do, you can control  spending. Otherwise it will be difficult to handle  household expenses at the time of  corona pandemic. 

What you can do so that you can reduce your household expenses and can save money. For this, you have to think yourself what to buy and what not. I am going to share some tips which might help you in saving.

1) Prepare your monthly budget

Make a budget for essential things that you need in a month to maintain your house Such as - home ration, electricity bills, mobile bills, medicine expenses, children's education fees, and so on. At the end of the month, set aside money from your or salary or income for the budget. And spend on those things which you have included in the budget. Just curb your unnecessary spending.

2) Use electricity properly

It is very important to use your electricity properly. I have seen in many homes that fan was rotating and bulbs was turned on but there was no one in the room. This  increases your electric bill. I have faced this situation in my past life. Due to non-payment of bills within due date, electricity of my house was disconnected. I paid  all the due bills by taking loans. Then the electricity of my home was connected. First time we had been without electricity for three and a half months. Luckily, it was winter. Otherwise the condition would worsen, if it was summer. Therefore it is  necessary to use electricity properly. You must switch off the fan and bulb if there is no one in your room. This way you can lower your electricity bills and save money.

3) Reduce the use of credit card

I have absolutely no experience of using credit cards. Because I had never applied for a credit card. But I am aware of the problems that happen by the misuse of credit cards. I had many friends who purchased using credit cards and had to pay interest and penalty several times for not depositing money within due date.

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This facility is given by the bank to their consumers so that they can buy on credit and make the payment later if they do not have enough cash at that time. I don't know much about it. So my advice to you is that use credit card only when you really need it. 

4) Reduce your loan amount

Everyone will advise you to repay loan amount quickly if you have taken before. But is this possible? A time period is made for repayment when you take a loan. It depends on your loan amount. To repay the loan in one go, you will have to make a settlement with the bank and for that you will have to make payments together, which is not possible at all. Yes, you can do one thing. You repay the EMIs for the old loan on time and do not take any additional loan from the bank.

I have never taken a huge loan from the bank. Yes, microfinance offers small loan at a  low interest rate which has to be paid every week or every month. I borrow small loan from microfinance only when it is needed. Otherwise I would like to avoid it.

5) Make Investment

It is necessary to grow your savings and it can happen only when you make investment. There are several financial products like fixed deposit, mutual fund, stock, and so on, in which you can investment and grow your money. Investment in mutual fund and stock is subject to market risk. So if you don’t have any experience, then take help of expert before making any investment. Otherwise you can go for fixed deposit and earn fixed rate of interest. It is safe.   

I told you these five ways to reduce spending and grow money, but you can also try yourself to find different other ways and use them to reduce the expenses. You can save only when you have control over your unnecessary spending.

Thank you for visiting my post


Posted Using LeoFinance



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