Spending money is a major factor in understanding how our minds work and knowing the psycholgy tricks behind it will put you a step ahead in the money saving game. Saving money is very important for your health, bringing up your children, paying for their education, buying a house, among other things.

Today I will give you some tips that can help you in saving money, they are :

1 . Cash

When go out somewhere to eat, say in a restuarant, or go for shopping etc, try using cash instead of your credit/debit card because when you use cash, you have an emotional attachement to the physical material paper and it is more painful to hand the cashier eight two thousand rupee notes rather than just swiping the card, simply because it feels like you are giving less when you use a card. Try to always keep cash and limit the swiping.

2 . Automatic Deductions

This a tip which is amazing because you will not even know that the money is being taken out. What you can do is let your bank know to cut a percentage of the money from your paycheck and transfer it to a savings account from where you cannot withdrwa money for a few years. Becoming rich does take time and once you store a lot of money, you can then start investing money in projects that you feel are financially feasible and profitable for you.

3 . Monthly Statement

You should start a monthly balance sheet where you can write down all your monthly expenses, your income and bills etc. What happens when you start doing this is that you understand where your majority money is spent at. You also understand that the regular things that do not cost a lot add up and do take a large chunk of your money. It helps you in understanding whether you are at a montly profit or deficit and can help you save money and cut your unnecessary cost.

4 . Now Or Later

There's alot of times when you want to buy a new phone when you already have a nice phone. What you need to do is wait for a month and see if you really want it or were you just buying it to impress people. There might be an opportunity to invest in a venture and the money you would have spent on a phone will inturn become an asset.

5 . Increase Income instead of Reducing Expenses

This is the best advise, try focusing on ways by which you can you can increase your income. If you want to buy an expensive car, try working and figuring it out ways for increasing income. Focusing on increasing your income will be more helpful for you than focusing on reducing expenses.

These tips have been very helpful for me and I hope they will help you aswell.
Thank You.

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Profile of Elizabeth Atkins
Elizabeth Atkins  •  3y  •  Reply
Great tips.
Profile of Khushi B
Khushi B  •  4y  •  Reply
Great tips.