An Employee Survival Guide to Save Money More Effectively

Save Money

If you have bagged a job recently, you may spend your full salary treating your family and friends. But from the second month, you need to start saving some for your future. Monetary security is important when you want a happy and fulfilling life. Besides spending money for enjoyment purposes, you also need it to safeguard your family from possible problems. Thus, having an effective money-saving policy is important for every employee.

Here are some pro tips that can save you money even when you have a lot of expenses throughout the month-

Budget creation: Creating a budget is essential for everyone. With this, you can get a clear idea of how much you must spend monthly on food and other things. If you run a family, you have to bear a lot of responsibilities. Adding up those expenditures will not allow you to spend much for your enjoyment. Creating a budget will help you keep aside the necessary expenditure. Then you get some money to spend on yourself.

Debt management: It is important to manage your debts first. If you keep accumulating debt, you end up losing a lot from your monthly income itself. Some people take loans constantly and thus, they always have to think about their debts and how to pay them back to the lender. Don’t be like that. You need to change this habit first. Do not opt for credit cards when you do not have a hefty amount of salary. When you have a credit card, you can keep on spending a lot of money unnecessarily and that too without realizing.

Invest in life insurance and medical insurance: Investing in a life insurance plan and a medical insurance plan will save you from spending unnecessarily. When you have to pay a hefty premium yearly, you will end up saving a portion of the premium from your monthly salary. This will also help you manage your monthly salary like a pro. You need to keep aside an amount so that you do not feel stressed at the end of the year.

Save your tax: You have to save tax by pushing your monthly salary like an expert. You need to understand the taxation features of the country first, and if you have any doubts, you can ask someone to help you out. Your parents or someone who works in this field can enlighten you about this. You can also watch some YouTube videos explaining the country’s taxation procedures. You need to invest your monthly salary effectively, which is exactly how you can avoid paying a lot of taxes.

Other benefits: When you join a company, you may see the CTC and realize that it is a high amount as per industry standards. But there is always a huge gap between CTC and the real in-hand salary. Therefore, it is always wise to choose a company that provides you with some additional benefits. For your job, you may need to travel every day. If your company takes care of the traveling expenses or provides you with a pick-and-drop facility, then you can save a lot of money. In this way, you can check all the additional benefits you may get from your company and utilize those to save money on your salary.

Fixed deposit: Every employee must have fixed deposit savings in his name. This is very important for your future and your family’s future as well. If you lock your money for five years, you will get a good amount of interest. Also, if you keep the money in your bank account, you would end up spending the whole on unnecessary clothes and other stuff. It is always wise to go for a fixed deposit savings option. This will save you money and help create a stable future.

PPF account: PPF is another excellent investment that will lock your money for 15 years. You can save yearly from INR 500 to INR 150,000. The bank will give you an interest of 7.9% on your PPF savings. But you cannot take the money out before 15 years. If you lock your money for 15 long years, you can imagine how much you save. In this way, you can create a strong and stable future for yourself and your family.

Emergency fund: You also need to create an emergency fund. Emergencies do not knock before coming, and when they enter your life, you get no time to prepare. So, you have to save a certain portion of your salary as your emergency fund every month. Do not spend this money on buying unnecessary gadgets, clothes, designer bags, etc. Just save the money for certain emergencies that may knock on your door any fine morning. You can save this amount in another recurring account. In this way, you will also be able to earn some interest from it.

Conclusion: If you have gone through this you can save money effectively. You should know that saving money is very important. We have shown you some ways, and you may end up finding more of your own- just by examining your personal earning and spending patterns! So, invest sensibly, and be well aware of the organization you are trusting with your money.

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The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.