Wednesday, 1 December 2021

How do I Save Money From My Hard-Earned Salary?

How do I Save Money From My Hard-Earned Salary?
04 Nov

There is no wax on wax off for saving money. You learn to keep aside a chunk of your earnings gradually.  You should not get complacent with your salary – it doesn’t mean that you don’t earn enough to start saving. Even if your salary is equal to the proverbial peanuts, you can still set a handful of nuts aside provided that you prioritize your expenses well.

The English language has a very famous proverb and that is – “Cut your coat according to the coat”. This means that one should never go for things beyond his/her means. You would argue that there are times when you have to take a loan for emergency expenses.

However, if you grasp the essence of this proverb, it simply means that one shouldn’t make a hole in his/her pocket and spend on luxuries.

There is no point in living in a delusion of grandeur when you know that you will have an existential crisis at the end of the month. You will have to find an answer to the question which keeps lurking over your head – how to save money from salary.

At EBC, we believe that saving money isn’t about remaining tight-fisted or living in miserliness. Instead, it’s setting your priorities right and sticking to a plan.

So, what’s the plan? Here’s a spending plan which has proven to be highly effective for people who have adhered to it.

Have a Concrete Budget

What good a budget is for if it keeps on changing. You have to allocate different portions of your earnings to different categories. This might be a far cry for people whose finances are all over the place. No matter how messed up your finances are, you can always stick to a 50/30/20 budget.

It simply means devoting 50% of your salary to necessities, 30% to wants, and 20% to savings.

As you progress towards your major financial goals, you should start investing for getting higher returns than savings accounts. Betterment is one such platform that lets you take advantage of market returns over the long haul by creating mixed portfolios.

You can start investing with as little as $1000. Moreover, Betterment guides you throughout the investment process and helps you make informed decisions that mitigate the market risk to a great extent.

Daily Savings

Every Buck Counts! Some changes in your daily life yield small savings. Just a few tweaks in how you go about your daily life will save you a few bucks which will add up over time.

  • Use automated tools in your day to life

When you make daily purchases, you aren’t mindful of how much you are spending on all verticals. What if you start getting a monthly analysis in the form of statistics on your expenditure pattern. This will not only help you track where your money is going but will help you in strategizing your finance as well.

Charlie is the best budgeting app that helps you keep an eye on due expenses and also provisions money for the purpose assigned. Charlie has a smart interface, you just have to type the text and the money-saving prodigy penguin gets on the job quickly.

Further, you never really keep track of the leftover changes whilst buying a product, or do you. These days most payments are done digitally so depositing the change in the piggy bank is going out of context.

Fortunately, there is an app that rounds up your expenditure and invests the extra cents in the stock market. It works with both debit cards and credit cards.

It might not make you a millionaire overnight but remember that Rome wasn’t built in a day either. So, Acorns could help you in getting started with Investments.

  • Purchase groceries via an app

Technology has made it possible for you to order everything online and grocery is no exception. Why make it a ritual to drive your car to the supermarket and come home with the boot of the car stacked with groceries.

You can order groceries via Instacart and sit back and relax whilst the grocery is delivered to your doorstep. Moreover, you can avail heavy discounts from time to time provided that you make a purchase via an app or website.

  • Save money on car maintenance and insurance

Whether you drive an old-school American muscle from the 70s or a Chevrolet Camaro (this analogy might remind you of the transformer movie),  getting your car serviced from time to time will save you quite a lot of money.

Why wait for the time when your car starts to scream out loud HELP. Regular servicing will make your timing belt, clutch plates, radiator, and injectors last long. So, make it a point to get your car serviced after you have put a certain number of behind the wheels. Or else, be prepared to get the above-mentioned replaced which will definitely make a hole in your pocket.

There is another car-related expense which no one thinks can be curbed down depending on the number of hours one puts behind the wheel – Car Insurance.

These days, a new form of car insurance is disrupting the market – Pay per mile insurance. Pay per insurance decides quotes on how much time is the driver putting behind the wheels. This makes sense to people whose car sits pretty in their garages most of the time.

Metromile decides your car insurance quote on how much you’re putting behind the wheels. It charges a base fee after going through your driving history, age, and other factors in addition to a per-mile expense. Metromile doesn’t use telematics (just in case you are too concerned about your privacy).

  • Save money on your Comcast bills and other digital subscriptions

Trim is your personal finance wingman who negotiates your internet, cable, and mobile bills. This app does justice to its name – Trim. it finds ways to renegotiate your bills from various service providers and in the process saves you a handful of dollars.

Moreover, Trim also helps you track your unused subscriptions say iTunes and others, and cancels them off because they are good for nothing but soaking up the cash in the long run.

In a world of hurly-burly where we skip meals owing to the pressure of meetings and targets, Trim makes sense by tracking down services which we seldom use and canceling them off.  Most of us are too occupied to browse through our digital subscription and figure out what all services are soaking up our money.

You can also cancel your gym membership with Trim.

  • Save money on online shopping

While the flourishing scene of online shopping has empowered us to buy anything from anywhere, it also has its drawbacks. The tech geeks will advise you to search for flights in incognito mode in your browser and there is a big reason behind it.

E-commerce sites these days show increased prices for a product if too many queries are sent from a particular IP address. So, while you are window shopping on the site juggling things in and out of the e-cart, the algorithm knows that you are in dire need of the product and therefore can be charged higher for the same.

Paribus, through its algorithms, keeps track of various items listed on online shopping sites. It scans the invoice/bills from your inbox and keeps a vigilant eye to check if the price for the same product has plummeted after you have made the purchase.

Thus, Paribus is the app that helps you in finding the best deals after you have made the purchase.

  • Save money on the mobile bill

You may have not chosen the wisest of the mobile plan and it is very likely that you are paying extra dollars for services that you barely consume as part of the package. For instance, data. Twigby is a mobile virtual network that works with a wide array of network services including Sprint and Verizon.

Twigby offers you a highly customized plan which is in sync with your needs. Thus, ensuring that you only pay for services that you are using and saving extra dollars which were being wasted earlier.

We are the people of the Digital Age. Everything we consume is either digital or purchased through the digital medium. Thus, in the quest of finding an answer to the question – How to save money from salary, we need to get rid of the extra services that we have paid for but hardly ever use it.

Save Each Penny has always been the ethos of spring, and to resonate with it, these aforementioned steps can help you save on expenses big and small.




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