Saving money can be a daunting task in a world filled with constant temptations to spend. From enticing social media advertisements to captivating billboards, it can be challenging to resist the urge to splurge. However, it is crucial to prioritize saving if we want to build a financial corpus and fulfill our future goals. In this article, we will delve into three practical and effective saving hacks that can assist you in building that much-needed corpus.
Saving Hacks to Build Your Corpus
1. Strike the Last Item Off Your Shopping List:
We all make purchases every day, whether it's a small treat, a cup of coffee, or a train ticket. By making a slight adjustment to your shopping habits, you can consistently save money. The hack is simple: replace the first item you buy each day and strike off the last item on your shopping list with more cost-effective alternatives.
Here's an illustrative example:
Let's say your shopping list includes items like coffee, lunch, groceries, and miscellaneous goods. Instead of purchasing that expensive café coffee, opt for a refreshing glass of water. Replace a store-bought lunch with a homemade meal, which not only saves money but also promotes healthier eating habits. Additionally, for the last item on your shopping list, which is often an afterthought once all the essential items are listed, simply refrain from buying it. By adopting these small changes, you can accumulate significant savings over time.
Let's consider the potential savings from this strategy:
Daily Coffee Cost: Rs 50
Daily Lunch Cost: Rs 150
Last Item Cost: Rs 100
Potential Daily Savings: Rs 300
Accumulated Monthly Savings: Rs 300 x 30 = Rs 9,000
By diligently practicing this hack, you can save up to Rs 9,000 per month, which can make a significant difference in building your financial corpus.
2. Get a Piggy Bank:
It may sound nostalgic, but having a dedicated piggy bank can be a powerful tool in your saving journey. Regardless of whether you choose an envelope, a drawer, or a traditional earthen pot with a small slot on top, the key is to make it difficult for yourself to access the money prematurely.
Let's break it down with an example:
Imagine you earn a monthly salary of Rs 20,000 and you want to save 20% of it, which amounts to Rs 4,000. To make it more manageable, divide this amount by 30 days, which gives you approximately Rs 133 per day. At the end of each day, deposit this designated amount into your piggy bank. While it may not seem significant on a daily basis, the cumulative effect over 30 days is remarkable. By the end of the month, you will have Rs 4,000 saved and ready to embark on your investment journey. For added convenience, consider going digital and open a Recurring Deposit online.
Let's visualize this saving strategy:
Monthly Salary: Rs 20,000
Savings Goal: 20% (Rs 4,000)
Daily Savings Target: Rs 133
Day 1: Save Rs 133
Day 2: Save Rs 133
Day 30: Save Rs 133
Total Saved at the End of the Month: Rs 4,000
3. End Your Useless Subscriptions:
Subscriptions, whether online or offline, can silently deplete your savings. While it's exciting to sign up for new services or memberships initially, the reality is that we often don't utilize all of them consistently. To optimize your savings, take a moment to review your subscriptions and memberships, such as magazines, monthly gym fees, digital news platforms, or bookstores. Identify any subscriptions that are unnecessary or underutilized and consider canceling or downsizing them. Let's illustrate the potential impact:
Suppose you have monthly subscriptions to a magazine (Rs 300), a gym (Rs 1,500), and a digital news platform (Rs 500). Upon assessment, you realize that you hardly read the magazine, seldom visit the gym, and rarely access the digital news platform. By canceling the magazine subscription, reducing your gym membership to a more affordable plan, and finding free or lower-cost alternatives for news, you can save a considerable amount each month.
Monthly Savings from Canceling Magazine: Rs 300
Monthly Savings from Downsizing Gym Membership: Rs 1,000
Monthly Savings from Opting for Lower-Cost News Alternatives: Rs 200
Total Monthly Savings: Rs 1,500
By reallocating these unused subscription expenses to your savings, you can witness your corpus grow steadily over time.
By implementing these three saving hacks, you can significantly enhance your monthly savings and take meaningful steps towards your future financial goals. Remember, building a corpus requires discipline and conscious choices. Start small, stay consistent, and witness the compounding effect of your efforts over time. So, are you ready to apply these hacks and build that corpus you've always desired?