How I Save Money..

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My tips on increasing the savings..

Hey guys!! Hope you are all doing well. Today I decided to write a post on my money saving tips that has helped me in creating a financial stable lifestyle.

Like many young people out there, we often don’t value the concept of savings until we run into a financial crisis. That’s where we wish we could have saved some.

I am like any other person who loves to indulge in luxuries and “only saving and not spending” is definitely a BIG NO.

I love to enjoy little things in life that make me happy however at the same time I know the importance of financial freedom. The freedom when you know that you have enough to take care of yourself during retirement or maybe to create a life you love instead of coping with the jobs you don’t like, and you are doing it because you have to make your needs met.

I will share my mantra which is so simple to follow yet highly effective.

Before I begin with this I want you to know that this post is mainly focussed on savings. In my future posts I plan to share my investment portfolio and how I make use of my savings.

But for now, let’s focus on building the money first.


1. Have a Budget

I know it sounds boring and ridiculous but it is the ultimate key of knowing where your money is going.

I mean don’t you think that it would be much easier if you kept track of your money. How much you are spending on groceries and how much is going towards your social engagements like dinner with friends or weekend movies etc. The list is endless and thats why I am stopping here.

The key to keep a track of you expenses is by maintaining a budget.

Now it is upto you to get all fancy about this. You might follow some blogs or watch videos that may help you to make a list of your budget or you may do it yourself on an excel sheet or diary.

If you are already doing your budget then a big thumbs up for you. Probably you don’t have to read the other sections of this post.

 If not then you can create your budget sheet with the steps I will share with you on this post.
So take a diary, or a piece of paper that you can refer to later or an excel sheet. The next step is to divide your budget diary or excel into three sections.

First section will have expenses that are necessary like your rent, or college fee, groceries etc.

Second section will have expenses that are there but are not absolutely necessary like your weekend lunches, movies, gifts or shopping with girlfriends. I call that my luxury section.

And the third section will be your savings.


2. You must save first and spend later

This topic is quite contrary to most people’s spending habits. They will always say that there is no money left after the expenses to put in their savings.

However the truth is that you will never save if you make spending your priority.
You read books and quotes of financial advisors and this is the very first rule they will quote. Savings should be the priority and the first portion of your earnings must go there.

You can divide your remaining salary on your necessary and luxury expenses.

In the prior topic I asked you to divide the three sections of your budget excel or diary. I want you to fill your savings sections first.

But how much to add in the savings section? I understand that this question might be the most daunting of all. Don’t worry as I have that covered it in the next topic.


3. Follow a 30/50/20 rule

Now that you have divided your page into these three sections, I will explain you my 30/50/20 rule. While determining the budget, this was the rule I created for myself and I simply love it.

Meaning of this rule is – First you must save 30% of your salary, spend 50% of your salary on your necessary expenses and 20% on luxury expenses.

Let’s suppose I earn 100 bucks a month (post tax deductions), so I must first transfer 30 bucks into a savings account first and put 50 bucks to manage the necessary expenses and 20 bucks to spend on my luxuries.

Now the great part about this rule is that it can be modified in any way.

When I did the budget I realized my expenses are high and the best rule that suits my needs is 30/50/20. If you don’t have huge expenses, you can go for 40/40/20 or maybe 20/60/20 in case of more expenses.

It is the most basic rule that I absolutely love. You don’t have to have a finance degree to follow it. Just make a list and start by this rule from now on.


4. Have a separate savings account

This is the most crucial step and to be honest if you miss this one, your other efforts towards savings might as well go in vain.

Reason being that your savings shouldn’t be mixed with your expense account. With the busy schedule and hectic life it is quite difficult to keep a track of savings when it is in same bank account along with your money meant for expenses. There are high chances of you spending most of your savings without realizing it.

The most easy way is to open a separate savings account. The money will be out of your sight and mind and you would not be spending it even by mistake.


That’s it guys! I hope you follow these steps to create a good pile of money for yourself. I will be writing about how to invest the saved money wisely in upcoming posts. So stay tuned.

Till then, have a great week ahead..



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1 Comment

  1. Arti says:

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