How to Save Money - Create Wealth with Savings

                         Have you ever wonder that wealth creation can be done through Savings?
       
          The first thing when many think of savings is that they need to compromise on their standard of living and adapt to a lower lifestyle. But why we need money? We need it to live life at its best . Thus, making compromises in your life does not make sense. Savings should be done in an intelligent and clever way.
       
          Savings is the most underrated concepts among people. Many have in mind that savings only     helps to save some penny in your pocket. They have this mindset because they think it as a short-   term process. Take an example , If you checked your daily expenses and found that you had an unwanted expense of Rs.50/- . So you started saving  Rs.50/- daily. At the end of the month you will  save Rs.1500/-(50*30 days) and at the end of the year you would have saved Rs.18000/- (50*12 months) .Thus , small savings in long-run turns out to be a greater amount.

      The Best and Clever ways of Savings are :-

      1.   Use Of Credit Cards :-  Living in this digital world makes your life easy. With use of credit cards one can make huge savings . The major benefit of credit cards is that it provides Interest-free credit. You can get funds upto the credit limit fixed by the bank. Banks give you the time limit of 35 to 40 days to pay back the money .Credit cards reduces to take short-term loans on interest .You just need to pay a minimal amount as annually fee.                                                     

                There are many other benefits of credit cards such as cashback , reward points , discount offers,etc. Banks provide some reward points on spending a certain amount of money through credit cards. Banks also provide cashback offers where you are given certain amount of money back . Usually, banks make tie-ups with online and offline stores, brands , retailers , airlines, etc . and provide discounts, cashback and other offers , when you purchase through their tie-ups using  their credit cards.                                                                  

                 Thus using credit cards can save you a lot of money.

       2. Planning Purchases  :-  Today living in a digital world has opened up many 

 options. You have wide based of choices to made from . You can save a huge amount of money with proper and early planning . There many annual and festive sales at online and offline stores which provide huge discounts even upto 80% to 90% discount  . So, sort and filter things early as possible so that all those you need you can buy during this sales and offer and save a lot . Even when you plan a trip try to plan and make early arrangements early . Booking early flight tickets, accommodations can provide you huge amount of cost-cutting.

        For example, If you are going to move in to your own new house, you will need to buy furnitures  ,utensils, television, air conditioner, curtains, decorations , etc.  You  need to start planning now and mark dates of sales and offers so that you may get good deals on those items .

   

        3.Financial Planning:- If you make proper financial planning,you can save a lot of money. By financial planning , you can save a huge portion on money through various techniques such as taking an early insurance during your late 20s or early 30s , you will have to pay less annual premium than taking insurance at later stages of your life.You also can save through tax savings  and other various methods . In dept of financial planning ,read this article -Your Financial Plan : A Guide To Be Rich
       
        4.Make A List Of Expenses:- You should make a list of you monthly expenses,you will definitely find unwanted expenses.You could cutout such expenses so that you have more savings in your hand.

      5.Avoid high-interest loans/debts:-  Try to avoid debts/loans especially high-interest debts/loans. As paying high interest will result in less savings. But if you are in need of money , try to opt for low-interest paying schemes.



                           

     

When it comes of  creating wealth with savings, yes it can make you a lot of  wealth over a period of time. Now we take the earlier example of savings of Rs.1500/-  per month. That savings you can invest in various investment instruments such as equities,mutual funds, bonds,etc. You can even start a Systematic Investment Plan(SIP).You need to be consistent  investing your savings, you would make a lot of money over a long time.You can make around 22-23 lakhs through investing Rs.1500/-monthly through SIP in a mutual fund giving an 15%p.a return.

    You can create wealth through making savings and investing consistency.You will not see the results at the beginning but later you would see great results."Boondh Boondh seh sagar banta hai" can be applied here".And yes the power of compounding plays an important role here.

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