How to Save Money | Beginners Finance 101

Savings - sounds like a big word, isn’t it? As teens, we have all been through the phase of dreading any conversation related to savings or future investments. However, it’s always a good idea to start focusing on the basics of saving money a little early in life. It all starts with a piggy bank, where we saved up whatever little money we earned through small tasks or activities. I remember earning my first pay cheque, a modest amount of Rs 100, for my debut dubbing assignment at the age of 7 - 8, and my joy knew no bounds. I felt like I could buy so many things. Until reality struck and I understanding how things actually work. So, I was told to deposit the cheque in my ‘cubs’ account (the bank had introduced a special account for kids back then), so that I could keep it safe and use it for something more ‘important’. Times changed, I continued to work on various assignments and went on to explore new opportunities. During my teens, the process of taking someone’s help to deposit money and understand the functions of a bank continued. However, with every passing year, the responsibilities increased and I began exploring various aspects of banking, saving, budgeting among others. Thankfully, all this wasn’t much of a burden, as I began my prep quite early. 

I realised it was all much easier, thanks to the fact that I created a simple a process and routine. For beginners, tracking your payments, creating budgets and saving money isn’t rocket science. And you don’t need thousands of rupees to start with. Even saving up Rs 5 everyday can add up to Rs 1825 a year. That can buy you some of your favourite drugstore make up items or a dress that you have been eyeing for too long. Read on, as we share a simple routine for beginners, that can help you track, prioritise and save.

Maintain a Finance Planner
It can be a book or even an app. Though, I personally prefer maintaining a finance or budget planner, which can help track everyday expenses. This is important, as it can not only help you calculate your daily expenditure, but also maintain an account of the amount you require for basic necessities every month. Plus, you can highlight items where you can try saving money. For e.g: Walk that 1km distance instead of taking a rickshaw. Unless it is raining or you simply cannot walk due to a genuine reason, of course.

Finance Planner 2017 - Credit: Etsy

Create a Monthly Budget
Setting a budget is easy, but sticking to it is the biggest nightmare! But, it is a must for everyone out there, especially beginners. If you can’t ace budgeting now, what will you do when you actually get to the next stage? Budgeting for beginners will mostly involve sticking to the amount you have reserved for the month, and not going overboard (or asking your Dad for extra pocket money). For those like me who have started working early, you might want to ensure you prioritise and stick to buying only the most important stuff on your list. For e.g: If I had some amount reserved for a project, I decided to let that gorgeous pair of sneakers go. I can’t use an amount reserved for something else and splurge on sneakers, only to go overboard with my budget by the end of the month. I tell myself - “If those sneakers are meant to be mine, they will come back to me when I have saved enough for it.” In most cases, things did work out in my favour.

S for Savings
This is where it all begins. Once you start maintaining weekly / monthly records and stick to a budget, you can start a simple plan for savings. Like I said, it need not be huge. For starters, you can try and reserve anywhere between 10 - 20% of your total amount for savings. Collect that amount and keep it away. It can be in your bank, a box or any place that you consider safe (by safe, I mean even from your own prying eyes). If you think you are unable to save up even 5% of your total money, then you need to consider cutting down on your expenses. And no, by that, I don’t mean shunning everything in life. You just gotta be smart! Here are a few ideas:

Honestly, the list is endless! 

Set Goals and Save
The best way to achieve something is to set practical goals and work towards earning the reward. For e.g: If you have been eyeing a guitar for long, now is the time. Create a chart in your book and set a target amount. Create a plan for the next 3,6 or 9 months (according to the amount you can save) and work towards reaching your target. Nothing beats the joy of bringing home something special with your hard earned / saved money.

Check Quarterly Progress
For beginners, a quarterly progress on budgeting, prioritising and savings is good enough. As you follow the records and look back at your performance, you will feel motivated to work on new ideas, that can help increase your monthly savings. Sometimes, even a jump from Rs 5 to 7 can make a difference. So, don’t hesitate. 

The process maybe pretty simple for beginners, but the road ahead is not easy. Especially once you start working / establish your own business, and additional responsibilities take over. Suddenly, it’s not just about savings anymore. Enter terms like investments, insurance, policies and once again, everything starts sounding very complicated. But, what’s life without growing and learning something new at every step, right? Fortunately, companies like Bajaj Allianz Life Insurance offer complete solution to all your queries and ensure every aspect of their plans are decoded clearly. So, start early, be prepared to learn as you progress and #JiyoBefikar.  

Psst… we’ve got some exciting news for you. An early bird tells us that Bajaj Allianz Life Insurance is all set to launch something very exciting on June 22. Stay tuned, as we bring you exclusive updates all week long.

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Love,
The Dancebee