Where and how to save money easily to balance your budget

July 3, 2020

It seems next to impossible when you are on a budget to spend less. Yes, the saying of money flies perfectly fits here. We always spend more than what actually we intend to. Whether going shopping or having a night out, we always spend awfully. It must have surprised you often that how fast you spend money especially when it is about the budget. The time you get money in your pocket, you have some extravagant reasons to spend it. From buying fancy outfits to lavish luncheons, one is always ready to spend and that is something common with every being, though exceptions exist. In jest its all about spending like the prodigal son of the Bible and then ending up with a hole in the pocket.

Why save money

Saving, the first thing which comes to our mind after reading or looking at the word saving is cut off in expenses. Of course, you need to cut down your expenses and spread the legs as per the sheet.

Why save money is the biggest question because its hard to convince ourselves to keep the well-deserved amount away and let it be in the savings account, whispering and taunting us in a beguiling and sweet voice about all the not so important, scrumptious and tantalizing stuff we could buy and experience with it.

The pennies lying in your account, unused are something which is for your mental satisfaction. Why save money? Save money because it gives you freedom and peace of mind. If you are the one who is living the life paycheque to paycheque, and you decide to quit or get laid off or fired, those multiplying savings are there for you to be by your side to ease you in need. The savings are for you to be in luxury when you are sick or are hit by some unannounced bill like a vehicle or house repair or anything. And what’s the best part about saving in bank accounts! It multiplies. it goes on getting bigger and bigger and bigger. Yes, you feel contented and the pain of saving instead of spending is reduced when you see the amount multiplying. Savings are important for financial security. And also, they make you feel rich. You know that if you fall short of bucks, you can easily withdraw and utilize it.

Where to save money

Saving allows stockpiling money while earning decent interest with low-risk returns. A little research is always recommended before finally putting your money to multiply. The homework is always important to do since the interest rates are changing constantly. Before settling on any medium to save, it is always recommended to look whether the interest rates, the deposits, and the withdrawal restrictions are suitable for you or not.

Another question which follows is where to save money. We have the answer. In today’s world, we are not just limited to savings accounts and the cliché piggy banks. We are here with the few types of accounts where you can easily put your money and also earn good interest rate.

  • Savings Bank Account: Savings accounts as we all know are the most common account where people tend to save their money. These accounts are offered by mostly all the banks and credit unions. There are certain restrictions on savings account but still, they outshine to be the best. The interest on a savings account is comparatively low.
  • High Yield Bank Accounts: High yield bank accounts are also a type of savings account; the only difference remains that they yield comparatively high interest than a savings account. The reason for the high-interest rate is that the initial investment is not as low as that of savings accounts. The initial investment for high yield bank accounts is quite high. Even the account access is limited. This type of account is usually offered to valued customers of the bank who already have an account there. The online accounts are also available.
  • Certificates of Deposit (CDs): Another solution for the problem of where to save money is getting a certificate of deposit. These certificates are available through almost every bank and credit unions. CDs also offer higher interest rate especially when it is about larger or longer deposits. The drawback of these certificates is that a penalty is imposed if you won’t keep the amount for specified tenure. Usually, the maturity period ranges from six years to five years. Interest earned can be added on maturity.
  • Money Market Funds: These are basically a type of mutual funds which invest usually in low-risk securities. For the same reason, these are considered as one of the lowest risk types of funds. They provide short-term interest rate. Mutual market funds are offered by mutual funds, brokerage funds, and banks. Before saving here, a bit of research is always recommended for better yields.
  • Money Market Deposit Account: Offered by various banks, these accounts require some initial deposit up to a limit and balance, with a limitation over monthly transactions. Penalties are imposed in case of low balance or if the number of transactions is surpassed. The cash accessibility is more but the interest rates are low.
  • Treasury Bills and Notes: Treasury bills and notes are issued with maturities of some years ranging from two to ten years and the interest in earned at a fixed rate every six month. The notes upon maturity can be cashed for the face value. These are usually exempted from taxes. The purchase price is usually discounted. The difference between the face value and the purchase price is interest.
  • Bonds: Similar to I Owe You (I.O.U), bonds are another solution to the major question of where to save money. The bonds are issued by municipalities, companies, private holdings, states, and governments mainly to fund projects. Bonds are like lending out. When you are purchasing a bond, you are actually lending the amount to the seller. The seller or the bond issuer pays interest to the receiver for the lifetime of the bond at a fixed rate. Bonds are for fixed tenures and require a degree of risk. Penalties are assessed for untimely withdrawals.
  • Ways to save money on bills: There are a few virtues in saving money on bills, that are consistency, organization and finding good value. We have listed a few ways to save money on bills so that you stay fixed and close to your budget.

Be a power saver by considering motion sensor switches, LED and CFL bulbs, solar operated equipment, etc. Turn off fans, ac, lights etc when not in use. This will help in to bring down the electricity bill and you can save money and stay within your budget limits. One of the best ways to save money on bills when it comes to new appliances is to check the star ratings of the item when buying. Energy stars encourage savings. Even they rebate for good amount.

Plan your meals. Try not to eat out much since that is some heavy burden on the pocket. Plan if you are often on lunch and dinner dates. Choose restaurants with quality yet economical. Cook at home, enjoy a budget candlelight dinner with scented DIY candles. All this will help cut on your bills.

One of the ways to save money on bills is to choose wisely. When you are out for kitchen or grocery shopping, always make sure that you choose what is the best and is on sale. Seasonal fruits and vegetables often go on sale. Check for the quality and choose wisely. Compare brands when buying packaged products. It might be that the other brand offering the same thing is a bit low in cost than what you are choosing.

Another way to save on bills is car-pooling. Avoid unnecessary drives. If you have to go to a nearby place, try using a bicycle or walk, this will not only cut on your petrol and vehicle maintenance bill but also be beneficial for your health, so, fewer doctor bills too.

Keep things at your place organized. Try recycling and reusing things until they are useful. Avoid wastage. One of the most common ways to save money on bills for wrapping paper, cards, ribbons, etc.

When you know that a particular item can be utilized, try taking that in bulk. Do not be wasteful though. Prefer bulk stores for a few items. It might be that if you get a particular recipe spice, you won’t be able to use the full pack, but that in a small quantity.

Plan your wardrobe. Do not buy items just because they are on sale. Buy only those clothes which will be useful to you. When it comes to designer and branded clothes, you can also go for renting that would be beneficial for your wallet.

Automating and channelizing your savings idly lying at home will also help you get good savings. If you invest your savings properly, you can earn good interest on it.

The most important of all the ways to save money on bills is that you should try to pay the bills on due time so that you do not have to pay extra penalties and fines. Another point is that in case of electronics, other appliances, vehicles etc, try doing regular cleaning and proper maintenance so that when you have the regular service check-up, you need not pay extra bucks.

Best way to budget money

Best way to budget money! Now that’s what every sentient being thinks of whenever the term “savings” is mentioned. It’s just like that old school question which lingers inside the minds of people from all walks of life. Be it you, your father or even your mom knows that the basic thing to do would be to maintain a monthly budget or a record of some sort. The rest will be taken care of! Right?

Wrong! Just maintaining a manual regarding your budget won’t solve the bigger picture which is still screaming what is the Best way to budget money. Well, there are a few alternatives to this ancient orthodox approach which the people have been following for decades:

Before you rub your eye in disbelief and ask “wait for what?” hear this out. In this age of cyber transactions and online banking and all Skynet stuff. Why not take a step ahead and let your card manage the transactions which you’re not so sure about. In other words, your credit card or debit card is also a sort of inventory which keeps the track of all the expenditures you might have.

The thing is, you have to use only one card for your major transactions or the closest one for the same. This, in turn, will not only make the things easier but it’ll also help you in knowing the extra expenditures you’re not even aware of or the ones which remain unaccounted.

Yes, you can know what has been bothering your mind for so long. All you have to do is to sum it all up and then judge the total expenditure as per your expectations. Well, if it’s under or equal to your expectation then it’s okay but if it’s not then too you can manage the expenditure. The only difference will be the balance left as with early planning you’ll have better results as compared to the late planning which can yield you some undesirable results.

So now it might not worry you as much as it did before because now you know the best way to budget money!

How to save money easily

It’s true that life has never been easy on anybody. The moment we try to breathe in some relief, one or the other problem creeps up from behind and whispers boo! This happens with everyone and especially with those who think way too much about their expenditures. Before you try to hook up with another link or a video which says how to save money easily, hear this again:

Spend less on eating outside

Yeah, this is cheesy enough but consider this, you do spend your weekend in some restaurant or high-end eatery which tends to serve you good food. Obviously, this increases the “status” level but at the same time, it depletes money way more than you actually think of cause let’s be honest. People do eat more than what their bellies ask for in such places. You can learn how to make good food from YouTube, that’ll help ease your burden off a bit.

Keep a track of unnecessary expenditure

Whenever people ask how to save money easily, they tend to forget that the easiest way to save it lies inside the daily activities which everyone performs. It’s good that you go shopping because it’s important for your survival but going on a shopping spree is something which can and should be avoided.

People always buy more unnecessary goods while hanging around in shopping malls rather than making a generous list and buying the things from a simple general store. Do the shopping, don’t let shopping get the better of you.
By following such easy steps such as making your coffee yourself, doing the chores on your own and some other stuff which can be performed by you can significantly decrease the expenditure rate and hence will answer the serious your question which is how to save money easily?

Well, now you know!

Always remember that the rich save while the poor spend. The richer becomes richest while the poor becomes poorest. So, never ignore savings. We are pretty sure you will now put on few of our tips and ways to use and be economical. May the savings begin!

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