Top 10 Tips You Need to Know for Your Monthly Savings

Nov 18, 2019 | 3 weeks ago | Read Time: 3 minutes | By iKnowledge Team
Top 10 Tips You Need to Know for Your Monthly Savings

In life, different stages involve a lot of money. Marriage, education of kids, marriage of kids, buying a house, planning for early retirement, setting up a contingency fund to meet emergencies and medical expenses are some examples of these commitments. A well-structured monthly savings plan can help you meet each of these commitments, without any hassles.

  • Early start is a must

It is highly recommended that you start saving as early as you can so that you will have enough funds to meet all the planned/unplanned commitments that life brings you. If you have just started earning, this is the best time for you to instil financial discipline in your lives, by planning for a structured savings plan.

  • Goals

It will be easy for you to draft a proper savings plan if you are clear about your goals at each stage in your life. You need to make a checklist of the things that you want to do and the age-limit for the same so that you can plan your finances accordingly.

  • Live on a Budget

You need to invest at least 10 to 15% of your monthly salary into a savings account. Hence, you need to maintain a strict budget for your regular lifestyle. You should take ample care never to overstep this budget at any point.

  • Invest Wisely

When you have decided your stage-wise financial goals, you will understand how much money you would want by that time. For example, if you have started saving at 24 years of age, you might want to plan for your marriage expenses by the time you are 30. So, you have 6 years to build up your wedding corpus. Then, you need to choose your investments wisely, so that can choose the best saving plan that suits your goals.

  • Contingency Fund

What is a savings plan without accounting for emergencies? It is highly recommended that you put aside at least 10% of your salary towards a contingency fund so that you can use it in case of any unplanned expenses or emergencies.

  • Cut your Debt

Use your debit cards or cash instead of credit cards, whenever you make any purchases or for utility payments. Credit cards may offer you attractive paybacks, but their interest rates are quite huge.

  • Public Transport

Do you own a car or a bike? If yes, you would understand that the fuel expenses are constantly increasing. You can cut down these expenses to a large extent when you start using public transport means like buses and trains.

  • Eating and Travelling Expenses

Often, it is your dining and travelling expenses that burn a deep hole in your pockets! So, you need to make a conscious decision to stop eating out regularly and go for trips with a strict budget in mind. This will help you unwind but without the guilt of spending too much.

  • Review your Budget Regularly

You should take stock of your savings/investments every year and track the performance so that you know if they have been giving the returns that you expected. If your investments need a portfolio rearrangement or if you need an additional rider along with your existing insurance plan, you need to talk to your financial planner right away and do the changes, so that you get maximum benefits.

  • Additional Income

One of the best ways to save more every month is by earning more. You can use a few hours every day and, on the weekends, to do some part-time jobs and get paid for it, too. Make a checklist of your passions and search for freelance jobs in that category, on the internet. You are sure to find something that satisfies your passion and your purse as well!

To know about Aegon Life’s life insurance products like term insurance and other products, visit our home page.


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