To save a penny is to make a penny, which is an old expression that has always been effective. To increase wealth, you need to do investment for part of your income in high-yield investments. Some simple steps to save money in daily life even while spending money are explained ahead. As a beginner or any other person, you need to firmly control three areas: expenses, borrowing, and investment. Finally, you will spend on basic needs and auxiliary costs, and ultimately borrow and invest to achieve your life goals.
Start early- You want to start saving as soon as possible. Even small savings can not only cultivate habits but also give you a good start. In the long run, the power of compound interest will benefit you, and you can see your savings grow exponentially.
Save first, then consume: The general rule of saving is to spend the remaining money after you accumulate some income. If you spend the rest before saving, you should reverse the process. This might become a problem in the near future.
Check bank account- Most of us have more than one bank account. Monitor your bank statement to see if charges have been withheld for various reasons. See if the bank can cancel and take action about them. You can also take action to prevent banks from repeating their mistakes.
Term insurance: If you are financially dependent, please purchase appropriate life insurance, preferably term life insurance. You will also have to purchase health insurance for all family members. The premium of this insurance is very low, and you can ensure that your savings will not be compromised in an emergency and that your family’s life goals will not be affected.
Credit card fees- If you are used to increasing credit card commissions every month, then you will seriously damage your financial situation. Some cards have an annual interest rate close to 40% or more. If you do not refund in full, there is no interest-free period for subsequent purchases.
Housing loan: If you already have a housing loan, please continue to repay the loan in advance and don’t wait until it expires according to the original term. The sooner the loan matures, the more savings are available to pay interest.
Digitization: If possible, use digital shopping platforms, whether for personal use, electricity bills, or even for life insurance.