By the time the end of the month rolls around, so many of us find ourselves pinching pennies and counting down the hours for when the salary get credited to the account. While that is acceptable (although undesirable) at the start of your career, when you're making little money, while trying to balance a decent lifestyle; too many of us end up carrying this messy relationship with money well into our careers. Saving money, as it turns out, is as much to do with your mindset, as with how much you make. If you've newly gained financial independence, now is the best time to inculcate a habit of saving. The sooner you come up with an investment plan, the happier you will be for it, going forward. Savings might sound like something only much older people care about - but your future self will thank you for thinking about it earlier than others in life.
1. Look into your savings options
There so many options available in the market. The first step for you is to do your research and get to know about all of them in a lot of detail. From fixed deposits to mutual funds and public provident funds to bitcoin - every investment (and even every bank) has different benefits and you need to find the one that fits you right. Think about what your needs are, which savings type would fulfill those needs and where you'll have your first investment. It's always good to start with something that has zero to minimal risks, even if that means the returns are fewer. Once you have some 'safe' savings options under your belt and a better hang of your savings style and capacity, you can venture out and try investing in some of the slightly bolder options - this way, even if things go wrong, at least you will have some money saved up to lean back on. But make sure you invest only a very small amount in risky propositions, to begin with.
2. Figure out your taxes
I know it might seem super complicated and overwhelming when you're just about starting your journey as a financially independent women, but it's so important in today's day. If you're paying more in taxes every month than you have to, you're doing the complete opposite of saving money. If you're employed full-time, get an investment declaration form from your office and try to understand what each and every box on that means. There are many deductions made available to you and once you are familiar with all your tax saving options, you'll be able to make better and more sound financial decisions.
3. Set realistic goals
It's very important to decide the right savings goal for yourself - it shouldn't be so small that it becomes a very slow savings plan, and it shouldn't be so high that you constantly feel like it's unattainable. Be realistic when deciding the figure you want to save each month and come up with practical ways of achieving it. Don't budget a hand-to-mouth situation for yourself, but it is also really important to spend less than you earn every month. Try living below your means and when you get a raise or a promotion, stick to the same lifestyle (more or less) so that you can fully invest the extra flow of money.
4. Automate your savings
One way to make sure you are regular and committed to your savings plan is to automate everything. Set the date for automation as, say 5th of every month if you get your salary on the last working day of the month, so you know you won't default on them. And make sure you get quick online access to all of your savings so that you can track them in real-time and see the fruits of your labour. It also helps if, due to some emergency, you need to access the money in your savings as soon as possible.
5. Start today
We keep waiting to start saving money in the future, when we're making more money. Well, guess what? It's never too soon to start investing money. If you've been thinking about it and toying with the idea, just go ahead and do it. Once you start, your budget will adjust to accommodate your savings and you will actually start feeling like the financially independent woman that you are.
Comments
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