Saving money is a personal choice. Many people are just content with using hra tax exemption calculator and saving money based on whatever tax exemptions they can get. And some people choose to live on a budget, while others don’t mind splurging here and there. However, really sharp people take an active step towards saving money. The best way to save money is by having goals. It’s always good to have goals in your savings account so you will know when you’ve hit or surpassed them. There are several different ways to save money without having just to say “save” it. These tips can help get you started!
1. Set a practical goal based on your earnings
The first step to saving money is looking at your budget and determining what you can afford to save each month.
If you don’t know where to start, start with what you have. That’s right, figure out how much money you have coming in each month and multiply that total by 12. This will give you an idea of how much disposable income you have each month, which is the best way to determine your savings goals and how much you should save. If you’re just getting started in your career, the best way to do this is by using your paycheck. For new professionals, they just need to think about how much they are earning and how much they can save each month. Note that savings goals don’t have to be instant or even precise (that’s part of why they’re helpful). However, it’s important that they aren’t so far off from reality that they feel impossible or too far out of reach.
2. Set a savings deadline
Once you’ve figured out where your money is going each month, set a savings goal for yourself and stick to it! Calculate how long it will take to reach your goal based on your earnings and set a deadline for reaching it — but make sure that deadline is one that’s realistic (and achievable). This could be three months from now or next week; it doesn’t matter as long as it’s something that feels reasonable and achievable.When you set your savings goal and start saving regularly, it’s important not to lose sight of the big picture. If it takes 10 years to earn 1 million through compounding interest (the longer the time frame, the better), then saving $200 per month isn’t going to make any difference at all in the end! So set yourself a deadline for when you want to hit your target savings amount (or even better — when you want your first million!).
3. Create a different account for each goal
You have probably heard this one before, but it’s true! Each time you make a saving goal, it should be done in a different account. The reason for this is that if you see your spending habits changing and you don’t feel like you are getting anywhere on your savings goals, it is easy to get discouraged and give up. By keeping each goal separate, it will be easier to track how much money has been saved and how far along each goal is.
4. Track your goals
Now that you have multiple accounts set up, ensure you track every penny that goes into them. This means checking the balance regularly so that you know exactly where you stand with your savings goals. If one account isn’t working out as planned, move money over to another one until it does work out. It’s also important to write down what worked well when something did go right so that you can use those tactics again in the future! If you have a goal related to your provident fund you can use a ppf calculator to see when you will reach your goal based on your monthly contributions. These calculators already have in-built latest interest rates so you don’t need to worry about finding the latest interest rate updates.