6 Ways You Can Start The Money Saving Challenge

To make money, you need some money, and small steps lead you to accomplishing something significant. Here are 6 ways you can save money prudently.

Manage Your Monthly Budget Frugally

In an effort to build-up your savings it is important to plan your monthly budget. Budgeting will bring a clarity on what you earn vs what you spend. Cutting back on unneeded expenses may be a tough call for many since many of us have been accustomed to spend much more than we actually need. Here are some ways by which you could shape your monthly budget.

  • If you can’t pay in cash, don’t buy it
  • Bring your lunch to work
  • Look for items on discount while trying to fixate only on what’s necessary
  • Plan out your holiday spending budget in advance
  • Take public transportation as much as possible
  • Buy a used car rather than a new car
  • If you opt for an expensive gym membership make it a point to stick to it

Cashback Websites to the Rescue

Purchasing goods from cashback websites instead of E-commerce marketplaces like Flipkart and Amazon could save you an adequate amount. Not only do most cashback websites offer the same product as listed on the usual e-commerce websites, but they also offer a discount of 5-7% on the purchases you make.

Sometimes Second-hand Is Just As Worthy As A New Product.

Websites with taglines of ‘Nearly New’ are there for a reason. Certain brands and designer products are outrageously priced and not worth the one-time investment. By browsing such websites, one can always gratify his/her needs of a luxury wish list. We often end up investing in things which can be borrowed. One could always acquire durables such as household appliances and sell things unneeded on Craigslist.

Invest Money in Banking Schemes, Equities and Mutual Funds

One of the biggest mistakes that people tend to make in general is not investing in befitting places. We are usually taught how to save money and not how to invest. Distribute your money in Banking Schemes, Fixed Deposits, Mutual Funds and Equity Market as a little bit of risk always increase the chances of generating greater returns.

Avoid Using Plastic Money At Large

The boon of debit and credit cards often leave us oblivious to the actual money spent. Studies also support the fact that people tend to overspend if they use a credit card for a purchase. If the payment has to be made in cash, people often feel the pinch. In case of a credit card, as the user only signs on the slip, the full impact of the purchase is not felt.

The No-Spend Challenge

Consciously taking up the No-Spend Challenge is not the easiest of the tasks. It basically means you get to only spend on the necessities and deprive yourself of the luxuries you intend to spend on. Even though the motivation to initiate this idea might be as fragile as glass, the long term benefits are likely to be as tough as a diamond. Once you’ve collected ample savings, you can start transferring the money to an online savings account and watch your savings grow even more.