If you are a salaried person and looking to save more money from your salary then here we will discuss the 7 Best ways how to save money from monthly salary.
7 Best ways how to save money from monthly salary
We all know the importance of saving money. But the universal problem is our salaries do not increase rapidly every year. But our expenses and inflation go up. So the best way to survive is to save money and invest money to get some passive income. Before passive income, you need to save money. let’s discuss, from your fixed monthly salary how can we save money.
Get a credit card with cash back
Now most people are giving advice not to use credit cards and it’s a debt trap you may fall. But the good of a cash-back credit card is it will give you money back if you spend it through the card and reply in a timely. While using a credit card you need to be careful of the repayment time. Otherwise, you may pay heavy interest rates of up to 50% annually and other fines and charges.
Let’s understand with a simple example
|Expenditure details||Amount per month||5% cash back|
|Travel or Gas money||300$||15|
Most credit card offers you points that can be redeemable after a certain limit.
This will help you to save money from your monthly expenses.
Buy things in offers or sale
Start buying clothes and other accessories while the annual sale or stock clearance sale is on. You can get the clothes around 10 to 30 percent cheaper.
Make sure that you only buy the clothes which you will use. Do not buy it as it’s available for a discounted cost. Using this trick you can save some money annually.
Plan the buying and have a list before buying it.
Choose annual plans instead of Monthly.
Most mobile plans offer some discount if you choose annual plans instead of monthly plans.
Similarly, you can get a discount on your entertainment or Netflix annual subscription.
Make sure you disconnect the unnecessary plans or reduce the tariff. Using this trick, you can save money.
Avoid any late fees.
If you have any loans to repay and paying EMIs then try to make the payments on time. Any late payment will cost you extra as late payment. This is also applicable to credit card bill payments. So always pay the bills, loans, insurance, and postpaid subscriptions on time to avoid late payments.
Automate your savings.
Many of us try to have expenses first when the salary come into account then think about the savings. If you do that that’s absolutely wrong. You must save first before any expenditure.
You might have heard about the 50-30-20 rule. This rule suggests you must save 20% of your monthly income into savings. To do that you must automate the savings. You can choose auto SIP or Recurring Deposits.
Read more: Is it good to have multiple bank accounts?
Reduce bad habit
If you have any bad habits like smoking, drinking alcohol or any kind of bad money habits then try to reduce it or stop it completely. This will save lots of money. This will also save you money in the future from any bad health or hospitalization.
Choose public transportation.
Most advanced countries have a good public transportation infrastructure. This saves lots of money for the people. Instead of private cars, you can choose public transportation for your daily office visit. You can even have a walk to the office if it’s nearby. You can use your car occasionally or on a family trip. This will save lots of money.
There are many ways you can save a good amount of money from your monthly salary. Here we discussed the 7 Best ways how to save money from your monthly salary. We hope this will help you save more money and reach your financial independence.