Check Out These 7 Best Proven Money Saving Tips

11 Jul 2022

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We all have grown up listening to the importance of saving for a rainy day. However, things are easier said than done and saving a few hundred rupees by not eating at your favourite café will still probably not make a significant mark in the bank. So, what really is the best way to save money? Are there some tricks that can really make a difference and help you save enough cash for emergencies? If these are the questions running around in your mind right now, you have come to the right place. Let’s take a look at 7 saving tips that will really make the difference for you in 2022.

1. Set a target

One of the best ways to truly achieve any goal is to first write it down. This way, your plans become much more tangible. Note down how much you wish to save on a monthly basis and how you plan to save this amount. When creating a target, remember to also note down surplus expenses that you make each month. Then, you can focus on reducing these expenses and increasing your savings. Cutting down on outside coffees, movie at the cinema, and takeout can truly make a huge difference on your monthly budget. This is not to say that you should not enjoy your money by buying the things you love. You simply need to budget and spend a bit less, so you can save a lot more.

2. Open a new savings account

Now, you probably already have a savings account where you keep your money and deposit your salary. However, this account probably ends up as a spending account. Most of us have our savings account linked to all our bills and online wallets. As a result, it’s not too long before the cash supply runs dry. To really build your savings, you need to consider opening another bank account into which you will deposit money without spending it.

When opening this second savings account, choose a bank that offers you a good rate of interest on savings. This way, your money will not stay stagnant but grow.

3. Start a recurring deposit

One of the easiest ways to grow your savings automatically is by opening a recurring deposit (RD). For years, our parents and grandparents depended on RDs as a method of saving money with ease. The concept of an RD is really simple – all you need to do is select an amount of money that gets auto-debited from your savings each month into the deposit. This debit continues for a selected period of time that can range anywhere from a few months to a couple of years. Once the tenure of the RD is complete, the entire accumulated amount and interest comes back to you. You can choose to convert the matured RD into a fixed deposit (FD) and reinvest your funds. Or you can opt to get the money credited to your savings account.

4. Pay off debt

Ask any expert how to increase savings and they will probably ask you whether you have any debt that can be paid off. One of the best ways to put more towards your savings is by lowering the amount that you pay towards loan EMIs each month. Now, paying off debt is easier said than done. So, start small with realistic targets. Focus on clearing loans that have higher interest rates. If you earn a bonus at work or some money from freelance projects, try to prepay loans. Do check, however, whether you will be charged a penalty for prepayments. If you are making just the minimum due towards your credit card bills each month, try to pay more than that so you can close at least one form of debt faster.

5. Use technology to your advantage

Doing manual calculations with your money can prove to be tedious. With so many other thoughts cluttering the mind, you may even make a mistake. So, use technology to help you in this task. You can use apps to help you budget your money. These apps can help you track your income, analyse expenses, and set goals for savings. If you are not much of a smartphone user, simply take the help of an Excel sheet on your laptop to easily add up your expenses.

6. Consider investing

Once you have built up a good corpus of funds, consider growing it by investing. You can consider various forms of investment, such as mutual funds. If you are new to investing, you may want to take some help from an experienced financial advisor. A financial advisor will guide you with the right investment strategy and tools according to your capacity and goals.

7. Review subscriptions

Most of us have subscriptions to accounts and items that we barely use. For instance, you may be subscribed to over 4 or 5 OTT platforms, but actually use just 1 or 2 of them regularly. Review all your subscriptions and cancel the ones that you hardly ever use. The same goes for any magazine or product that you have subscribed to. The money that you save by cancelling on these excess expenses can be put towards your savings.

Why is it important to save money?

Expenses often crop up without warning and it can be very hard to borrow money at the eleventh hour. Imagine a situation in which you need cash for medical treatment in the middle of the night. At this hour, your bank is closed, and your friends are probably asleep. Swiping your credit card might see you incur even more debt that can be unaffordable in the long run. And applying for a loan will probably take a couple of hours, if not days to get the funding you need. Having your own savings means you can get access to the help you need when you need it. Most importantly, it means that you can live life comfortably, on your own terms. Plus, having savings also helps you have the down payment you may need when you apply for loans such as a car loan or a home loan.

BoB savings account

Bank of Baroda offers a range of savings accounts, including Baroda Advantage Saving Account, Salary and Pension Solutions for Indian Military Personnel, Baroda Salary Classic Account, and more. There is also a special Baroda Champ Account for minors between the ages of 0 to 18 years. Each of these savings accounts lets you save smartly for the future. The Bank of Baroda savings account interest rates are also attractive. Plus, you can operate your account easily through mobile banking or internet banking.

Get in touch with us today to open up a savings account to grow your money for the future. Bank of Baroda lets you open up a savings account online with ease. For any queries, you can reach us on our toll free numbers 1800 5700.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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