7 Simple Tips & Tricks On How  To Save Money

If you have no idea how to save money? I think you’ll find this article helpful.

A few weeks ago I wanted to buy something so I tried saving a few bucks but at every month end,
there was hardly any money left with me. I bought that thing on credit and later fell into a Debt Trap with no savings left.

7 Simple Tips & Tricks On How  To Save Money

We don’t have a track of our expenditures and savings. We make a couple of dollars per month but at the end of the month, we have nothing left. In order to beat this problem, I decided to save money & manage my Budget.

If you are facing the same problem this article might help you. These tips will guide you to save
and develop a realistic strategy.

Why you should save money?

In this unpredictable world one who is financially secure can beat every unseen problem in his life. Our life is like a road trip to the desired destination. Down the road, you will face various roadblocks, potholes, and traffic (just a metaphor).To overcome these you must be financially independent.

The point is during this journey you may have a goal to accomplish, desires to fulfill and accidents to overcome. If you have the financial freedom you can focus on your ambitions instead of
worrying about your day to day expenditures.

To be financially free the first step is to save money and manage your life. According to me,
these are a few reasons why you should save money:-

➔ For Better retirement

➔ For Financial independency

➔ For an Emergency crisis

➔ For Stress-free life

➔ Avoid Debt Trap

Sometimes the hardest thing about saving money is just getting started. We all know “Money Saved
is Money Earned”
So make the most out of this article and good luck.

Tips & Tricks On How To Save Money

#1 Clear your debt

Remember one thing, “When you find yourself in a pit, the first thing you should do is stop
Similarly, if you think you don’t have enough money then stop taking loans or living life on
the credit cards because that will make your situation worse.

Every time you borrow money, you’re robbing your future self. –Nathan W. Morris

Debt is like a friend who gives once & takes a thousand times back. A lot of times we aren’t able to pay monthly interest amount on debt & eventually ended up with an extra-fine. Follow some basic steps to clear your debt:-

➔ Make a list of all the debts you have to pay

➔ Write down the monthly interest you pay for it

➔ Note down all the unnecessary expenses for the month. Like money spent on things which
you don’t need it, for expensive dining, or for a party.

Now you have all the numbers in front of you. For example, you have a monthly salary of
$1000 & you spend $250 each month on unnecessary things, $500 gets to spend on food, mortgage
& your bills and $250 as EMI of the loan
Theoretically, you should have saved that last $250 but you didn’t because of the repayment of the

Heres the deal,

Save those $250 which you spend on the unnecessary things. Invest it or Use it to clear your Debt. Don’t waste it on fancy stuff just because others are buying them. So I will suggest you clear your debt as soon as possible with the money you are saving per month. Once the debt is over you will have more money to spend or to save for the future

For now, you can do one thing is ‘Cut your credit cards’ (not literally). It means Stop using or relying more on credit cards. Although Credit cards are useful in some cases but we often misuse it.

Let see, if you use a credit card this month and pay 12 to 18% extra next month. You will just waste next month’s money in advance. 20% of your overall debt is credit card’s debt which can be avoided using simple tips like shopping with only $60 in your wallet (or the amount you spend monthly on entertainment).

This will make a big difference in your monthly expenses than shopping with a
$20,000 credit limit on the plastic card. Start using your debit card & cash if you want to save money.

#2 Track your expenses

Most of us don’t know how we spend money. Tracking your monthly expenses is the best way to find out how we spend our money and how to make proper adjustments in our budget.

A simple way to do it is Start making a list of all the expenses of the last month and Divide it into two main category

Track your expenses

A.Fixed Expenditure

Fixed Expenditure that hardly changes, such as your bills, Mortgage, utilities or EMI’s. These are unlikely to change. You’ll not be able to cut back on these expenses but knowing this amount will always be helpful.

B.Variable Expenditure

Variable Expenditure that changes from month to month, for example, food supplies, gas,
and entertainment, etc. This is your territory where you can make changes and save accordingly.

You can further segregate your Variable expenditure into ‘Necessary’, ‘Could be Minimized’ and
‘Unnecessary’ category. Thus You will have a crystal clear idea of where you can save more bucks.

#3 Set your priorities and develop wise spending habits

The big mistake we all do is that we spend without thinking irrespective of how much we have in our pocket.

“Never spend your money before you have it.”–Thomas Jefferson

You should prioritize your life, what you want, where spending is necessary right now etc. along with it. You should develop wise spending habits. Don’t just go on buying things with your credit cards or
buying expensive things just for showing off.

Set your priorities and develop wise spending habits

For E.g

➔ Be Frugal – Purchase cheaper items and save money.

➔ Change a habit – Like Smoking, Excessive Drinking or Don’t go for an expensive activity every week

➔ Compare prices before buying – Do some market research and shop accordingly.

➔ Check for Discount offers or coupons or Sale

➔ Use a piggy bank (Of course A properly sealed reusable piggy bank) for Coins and chan

#4 Shop smartly

I think we all agree on the fact that our home is filled with things which we buy but never use.
One thing I have learned over these couple of years is that “The Best way to save money is to
stop spending money with an empty head.”

Shop smartly

Here are a few tips for you,

A. Make a Shopping list.

Before you spend your whole money on random things make a list of things which you really need. One rule you must follow don’t buy anything unless it’s on your list. That doesn’t mean that you add all junk on your list just because you want.

B. Set limit.

At the end of every month set expense limits for the upcoming month. That helps you to manage money use for non-essential purchases. Before you go out for shopping take some cash with you and don’t use the card for shopping that’s how you restrict your shopping.

C. Don’t waste on clothes or accessories.

Before you purchase any clothes or shoes, ask yourself how regularly you’ll really wear it. Truth is we wear it for once or twice and that piece of cloth stays in the closet forever. What I do is buy a few but good quality clothes matching with each other. I try 4-5 outfits which makes several combinations that look good on me. So shop wisely.

One last thing: While Buying ask yourself do I really need it? Or Can I adjust even if it’s not there in my life?

#5 Set monthly goal

All the methods you use for saving money won’t work until you don’t decide how much you want to save per month. Is it really worth creating monthly goals? Let’s assume that you want a certain amount of money for a specific purpose but the fact is you cannot ever afford it with the salary you have. So in this scenario, you can afford it by dividing that amount into several small parts that you are going save from your salary per month.

“Do not save what is left after spending; instead, spend what is left after saving.” -Warren Buffett.

Set monthly goal saving money

Ask yourself “what do I want to save for?” & “how much I need for this?” your goals may be long term, like buying your dream house or planned retirement; Shot term. Buying new furniture or new tv; somewhere in middle like clearing off your Education loan etc.

After you identify your savings goals, you can go for a customized plan. When developing a saving plan ask yourself these questions:

Are there any variable expenses that you can reduce or eliminate?
Is there anything on which you spend that can be eliminated and apply towards saving?

#6 Open essential accounts

When it comes to saving money we all open savings accounts and that’s the best thing you do but the real question is “is that enough for the future?”.

Let’s find out,

“How you plan your savings decide whether you are financially ready for what future holds or not.”

I suggest everyone should have 5 bank accounts or separate funds that are made for a specific purpose.

They are as follows: –

A. For Emergency.

No one ever knows when there will be an emergency & how it is going to hit us so better be ready for the crisis. 20% of your wage should be saved in the account designated for emergency situations.

B. For Retirement plans.

Everyone is taking this topic for granted but saving for retirement is the step towards tackling risk that could be rising because of a deficiency of money. Using 20% of the salary for a better retirement plan is the same as taking car insurance before it gets crashed.

C. For Monthly expenses.

As I mentioned earlier monthly expenses take the major part of your salary so be in the budget is necessary. What I do is set a limit for my expenses basically 30% of my income kept for it and I try hard to be in this budget.

D. For Dream fund.

We all have dreams and money is the roadblock. We all think that we don’t have enough money but the real reason is that we never take our dreams into consideration. We keep on compromising it. Put 20% of total money into dream fund and see the magic. You’ll have enough money in the account after a couple of years.

E. For Entertainment

We all love weekend night right but it often empties our pockets. I’m not saying stop spending on entertainment resources. Just set limits for it. What I do is I kept 10% of my income for it. You can do the same or make it more or less so that you can save more enjoy more.

#7 Invest in smart instruments

Saving money is the first step to gain financial freedom but that’s not all. You have to start managing money and let it multiply itself for you. What it really means is- start investing money.

“It’s not how much money you make, but how much money you keep, how hard it works
for you, and how many generations you keep it for.” -Robert Kiyosaki

Invest in smart instruments

There are plenty of investment options are available in the market but which one is beneficial for you? & how to identify it? Just do some research and invest in genuine instruments. What you can do is a background check, ask your peers, search on the internet, read books, etc. Make sure you diversify your investments

Here are the few things which I put my savings in :

➔ Savings account
➔ Flexi Accounts
➔ Fixed deposits
➔ Stock market
➔ Mutual Funds


Managing your money makes your life a bit peaceful and stress-free. Once you manage your
habit automatically you will manage your money. In the beginning, you may not able to plan properly
and avoid spending until you can afford them. It takes a lot of practice and patience to be good with
money. The more you practice the better you get.

Now you know how to spend where to spend and about having separate funds. Go through this
the article again and make your own strategy.

My final tip is never cry for the money which we have lost (unnecessarily spent etc) instead
Always have an attitude of earning more, investing more, saving more.

7 Simple Tips & Tricks On How To Save Money


What are the three basic reasons for saving money?

According to my experience,
➔ To Achieve Finacial Freedom.
➔ For Emergency Crisis.
➔ For Early Retirement.

How can I save money each month?

The best way to save money is by proper planning & stop wasting it on the unnecessary thing.

What is the best way to save money?

Multiply what you have by investing in various financial instruments.

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