Saving money is hard. It’s easy to spend our hard-earned cash, even when we know that saving is the smart thing to do. But with the right strategies and mindset, anyone can start saving for later. So, in this blog, we will discuss some tips and tricks for saving money and building a secure financial future.
Why Is Saving Money So Difficult?
The answer lies in the psychology of saving for later. Our brains are wired to prioritise immediate rewards over long-term benefits, and this makes it challenging to save money for the future. That’s why we would rather spend money on a night out with friends than put it into a retirement account. This YOLO mindset leads people to prioritise immediate pleasure over long-term financial goals. It can be tempting to spend money on experiences like travelling or dining out rather than saving for the future.
Also, in today’s digital age, where social media and advertising constantly bombard us with images of luxurious vacations, designer clothes, and the latest gadgets, seeing our friends and family members enjoying these experiences can make us feel left out (FOMO) and compel us to spend money we might not have.
However, that doesn’t mean you must give up your pleasures today to build a future for tomorrow. It’s all about finding the right balance between short-term expenses and long-term saving goals. And the good news is the Multipl app can help you achieve that. To know more, check out the details below.
Strategies for Saving for Later
Set Clear Financial Goals
First, it’s important to set clear financial goals. This means identifying what you want to save for and how much you need to save. It could be a down payment on a house, college education, emergency fund, etc. Whatever it is, make sure you have a specific goal in mind and break it down into smaller, achievable targets.
Once you have a goal in mind, it’s time to start budgeting. This means tracking your expenses and income and making sure you spend less than you earn. A very easy way to do this is to list all your monthly expenses, such as rent, groceries, utilities, entertainment, etc., and compare it to your income. If you spend more than you earn, it’s time to make some cuts.
One way to trim down expenses is to identify your “needs” and “wants.” Needs are things you must have to survive, like food, shelter, etc. Wants are things you desire but can live without, like a fancy new car or designer clothes. By focusing on your needs and minimising your wants, you can free up more money to put towards your savings goals.
Finding ways to earn extra money is another way to save money. This could be through a side hustle, freelance work, or selling unwanted items. Even a small amount of extra income can make a big difference when saving for later.
Automate Your Savings
Once you have a budget in place and are bringing in some extra income, it’s time to start automating your savings. With Multipl, you can set up a direct deposit into your savings goals. This way, a portion of your paycheck goes straight into savings goals before you even have a chance to spend it.
Make Saving For Later a Habit
In addition to automating your savings, making savings a habit is important. This means setting a regular savings schedule and sticking to it. You could set a goal to save a certain amount each week or month and then make it a non-negotiable part of your budget. Over time, this habit will become second nature, and you’ll be surprised at how quickly your savings grow.
Finally, it’s important to stay motivated and celebrate your successes along the way. This could be as simple as setting a goal of saving ₹100 in 10 days and then rewarding yourself when you achieve it. Or, you could find a savings buddy like Multipl to hold you accountable and cheer you on as you reach your goals with rewards.
Saving for later may not be easy, but it’s essential for building a secure financial future. By following these 5 easy steps, you can achieve your savings goals and live the life you’ve always dreamed of. Remember, it’s never too late to start saving, so why not start today?
Multipl is the world’s first “Save Now, Pay Later” app. With Multipl, you can create goal-based investments, which means you can save some money and invest at the same time for a specific purpose.
The Multipl investment engine allocates the right assets and investment portfolio based on your duration, purpose, and risk profile so you can achieve your goal with maximum safety and liquidity. You can create both short-term and long-term savings goals like Gadget Goal, Vacation Goal, Child’s Education Goal, Retirement Savings Goal, and many more. In addition, brands co-invest with you to save more towards your goals. To learn more, download the app from Play Store/App Store.