Save More Money with These Simple Tips in 2018
With only a few days left to go for the New Year, it is a good time to start putting things into perspective. Now is the time to cut down on things that you do not need and focus on the ones that you do. Here are a few tips that will help you save money next year.
Build an Emergency Fund
A general thumb rule for savings says that you need to have at least 3 – 6 months’ worth of your current salary as savings saved away in a bank account. Having an emergency fund with this amount will give you the financial freedom to change jobs or deal with a crisis without depending on anyone else. So, before you follow any of the other tips make sure you fulfil this one.
Collate Bills
It is a great idea to start collating bills. Do not consider the expense of each item separately. This kind of practice makes it difficult to keep track of the budget. Instead, collate bills into 4 major domains. Namely rent, food, accommodation, and leisure activities. Collating bills also helps you remove the unnecessary regular costs that do not reap returns.
Start Using Credit Cards Over Debit Cards
You must have been taught in school that taking debts is wrong and the first step towards financial independence is being debt free. However, this is not entirely true in the modern-day scenario. Instead, it is better to take small temporary loans and pay them back in a timely fashion. Several credit cards help you avail a lot of discounts and cashback policies that are otherwise unavailable on a debit card.
With other important tips like the purchase of a comprehensive all-in-one insurance policy and choice of the correct types of loans, you can make a vast difference in savings daily. At National IDA, we aim to help you choose the best insurance policies that can help you save a considerable chunk of money every year.
Build an Emergency Fund
A general thumb rule for savings says that you need to have at least 3 – 6 months’ worth of your current salary as savings saved away in a bank account. Having an emergency fund with this amount will give you the financial freedom to change jobs or deal with a crisis without depending on anyone else. So, before you follow any of the other tips make sure you fulfil this one.
Collate Bills
It is a great idea to start collating bills. Do not consider the expense of each item separately. This kind of practice makes it difficult to keep track of the budget. Instead, collate bills into 4 major domains. Namely rent, food, accommodation, and leisure activities. Collating bills also helps you remove the unnecessary regular costs that do not reap returns.
Start Using Credit Cards Over Debit Cards
You must have been taught in school that taking debts is wrong and the first step towards financial independence is being debt free. However, this is not entirely true in the modern-day scenario. Instead, it is better to take small temporary loans and pay them back in a timely fashion. Several credit cards help you avail a lot of discounts and cashback policies that are otherwise unavailable on a debit card.
With other important tips like the purchase of a comprehensive all-in-one insurance policy and choice of the correct types of loans, you can make a vast difference in savings daily. At National IDA, we aim to help you choose the best insurance policies that can help you save a considerable chunk of money every year.
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