scorecardresearchSpend or Save: 4 crucial steps to help you decide between the two

Spend or Save: 4 crucial steps to help you decide between the two

Updated: 26 Oct 2022, 08:33 AM IST

Self-care is crucial after a long day or week, but it's also necessary to know how much money you can spend on yourself. Always pay careful consideration to the area of expenditures and acquire just what is required.

Making small changes to our everyday purchases can help us save and budget better.

Making small changes to our everyday purchases can help us save and budget better.

From the very beginning of living independently, most of us fall into the dilemma of whether to lead a luxurious lifestyle or stock up savings in a good amount. It is quite customary to have a strong desire to strictly save your money by the end of the month but anyhow end up purchasing a few things you love, even though not entirely necessary.

For instance, when an individual goes to the supermarket to buy groceries, also buys other eatables which may not be necessary.

However, independent living without pampering yourself by buying some unnecessary stuff can definitely leave a void.

This is the battle that all of us face between living the life of choice and envisioning a stable monetary capacity for one’s future. If we pay attention to our own activities, we can clearly knock out all the acts that we do on a day-to-day basis which lead to ‘no savings’ month end. Following are few of those:

Time to brush the cooking skills

At times, we spend a considerable sum of money on avoidable things such as eating out on a daily basis. It can be possible that we tend to ignore that one may spend only 200 on lunch everyday but that amount summed up for a month is 6000. Instead, we can adapt a way of eating what we can cook. This would allow us to treat ourselves with a fancy dinner once in a while.

Make ‘savings’ a routine

Savings is basically a guard against any future debts one can face. Make sure you fix a particular amount that has to be saved every month out of your pockets. Calculate your approximate costs for each month and then stick a specific amount that can be saved for each 30 days from the income received.

To do the same, a recurring deposit account may come handy. With respect to such an account, an individual is required to deposit a certain fixed amount every month for a specific period of time that has been decided prior. This will mandate the person to deposit a fraction of income instead of spending it.

Stay away from discretionary expenses

We tend to spend an additional amount of money unnecessarily. Especially the expenditure on oneself. Self- care is very essential after a tiring day or week but on the other hand, it is equally important to know the extent to which expenditure on oneself has to be limited.

Always give a thorough thought to the area of expenses and mindfully purchase whatever is needed. There has to be a territorial marking between discretionary expenses and priority needs.

Maintain a record and evaluate your finances thoroughly

Sometimes, it is usual for anybody to forget where the money has been spent. It is advisable to maintain a proper record of all the expenses. This will help you figure out if your expense limit has been crossed as well as in reassessing your expenditure for a given period of time.

The above mentioned strategies can be helpful for the purpose of wise spending which will ultimately let you live a luxurious life.

We share some tips about the need to save money. 
First Published: 26 Oct 2022, 08:33 AM IST