5 Ways To Save Money In 2021

Money is a wonderful thing, with the power to bring peace and stability to life. Not every person is equally adept at managing their finances or knows how to make their money work for them (and not the other way around).

From using an instant loan app to taking a personal loan to shopping online, this article lists 5 ways to save money in 2021:

1. Consolidate your debt.

Debt takes away a lot of your income every month. Loans are repaid via EMIs, which are deducted from your monthly salary. The higher the loan burden, the more your income is spent in EMI payments. You may have secured loans like home and car loans to your name, as also credit card loans. Aim to reduce the debt burden either by repaying some loans in full, or consolidating them under one umbrella with a personal online loan. The online loan then becomes the only debt you need to repay, instead of multiple loans that you must otherwise track. With a shorter tenure, the personal loan is easily repaid online on an instant loan app so you can become debt-free faster.

2. Budget for the month – and stick to it.

It’s a simple money rule to follow: Spend less, and you end up saving more. But how does it work? You must spend on essentials, so how can you both spend and save? The trick lies in creating a monthly spending budget – this includes bill payments, grocery shopping, eating out and travel for work. Set a realistic budget and stick to it, and aim to not overshoot it unless there is an emergency. This practice ensures that you save the rest of your income.

3. Set savings goals and review them after six months.

Every person must save money, and the savings fund must be reviewed every six months. For instance, aim to save at least Rs 3,000 per month. Six months later, review the fund – it should have Rs 18,000 in it, and you should aim to save at least Rs 1,000 more per month for the next six months. After a year, invest part of the savings in shares or a good mutual fund to grow the corpus faster.

4. Buy everything online.

With the pandemic resulting in nationwide lockdowns, online businesses started delivering everything possible to customers, starting with daily essentials. Online shopping for groceries, staples, clothing, even insurance and banking products, is cheaper than buying the same products offline. Online retailers have a lower margin and their operational costs are lower, so this benefit is passed on to customers in the form of regular discounts. There are heavier discounts and rewards for shopping during the festive season.

5. Stay home.

You will be amazed at how much money you end up saving just by staying home, cooking your meals by yourself and watching TV shows or films on OTT platforms instead of going out for an evening. Eating out, shopping and watching movies costs a lot of money, and these expenses don’t have a trade-off, i.e. you don’t get anything tangible in return except for a few hours of fun. You save a lot of money – and keep yourself safe during a pandemic – by staying at home and cooking, instead of ordering in from the restaurant. Make this a frequent practice and marvel at how much money you save every month.

Conclusion

The article above illustrates five of several ways to save money and start building wealth in 2021.