If you plan to save more in 2018, then you should have a sound strategy in place. Read on to know what you can do to make your savings strong.
A new year is a good time to assess your finances and work upon your investment strategy that could yield good results through the year. If your resolution this year is to make your savings more healthy and strong, then we list some smart ways to save money in the new year.
Use Credit Card Regularly, But With Discipline
Credit Card is a very effective tool to save money if used smartly. You just need to assess your requirement and select the appropriate Credit Card. For example, if you are a frequent flier, then you can opt for a co-branded Credit Card with discount offers from the airline companies. Similarly, if you are a shopaholic, then a co-branded card could be a good choice as it offers cash back and discounts on shopping. Credit Card companies have exclusive tie-ups with many merchandise, which provide you attractive discount and other offers.
You just need to be careful that you repay the outstanding amount on the credit card before the due date to avoid interest and penalty. If you use a Credit Card with strict financial discipline, then it can also help you to improve the CIBIL Score.
Plan Your Expenses
Unplanned expenses could hurt your finances in the long run. You must plan all your short and long-term expenses, and start saving money to meet such expenses in advance. For example, if you want to buy a car, then it would be wise to start investing money for the requisite period to arrange the fund and earn a return on it. You can also take a Car Loan if you can manage your debts smartly.
Save Money Before You Spend
Some people have the habit to spend the money from their monthly income and use the rest amount to save it to accomplish the financial goal, but many times it results in extra spending, leaving people with no saving. So, you must develop a habit to save the money first as per your financial goal and thereafter use the rest amount to spend on various things.
Give Up Your Bad Habits
This year try to give up your unhealthy habits such as smoking and eating tobacco, etc. It affects both your physical and financial health. In the long run, you may find your medical bill increasing and you may also need to pay more premium for Health and Life insurance cover. Instead, if you use the money that you spend on unhealthy habits for investment in the appropriate financial product, then you can save money and stay physically and financially healthy.
Invest Regularly and Smartly
If you think that investment is a one-time affair, then you are wrong. You must invest money regularly and in line with the inflation trend. You should also assess your investment regularly to reap in the benefit of market volatility.
Close Or Switch Your High-Interest Loan
Loan repayment is a big financial responsibility. This year, you must check your borrowing portfolio and analyse the interest rate that you are paying to the banks and financial institutions. Although the interest rate has dropped to a significantly low level, but sometimes banks delay in passing the benefit to its customers. So, you should check how much interest you are charged on your various loan products by your lending institution, and compare it with the interest charged by other banks for the similar loan product. If you find that you are charged a much higher interest rate than other banks, then take a call to switch the loan to another bank.
Apart from above-mentioned ways to save more money, you can use other ways as well, such as buying appropriate health insurance plan to save money on medical treatment. It is also important to strictly adhere to your budget to save a good amount of money.