Everybody has a list of goals with some monetary objectives in it. Everyone has short term or long term financial goals like buying a house, saving for higher education, saving for a long vacation or shopping for an occasion. However, people often find it difficult to turn their dreams into reality owing to unwise spending patterns and negligence of expenditure.
Here are some tips you might find worthy to keep the trends of your savings upwards:-
1. Review your existing memberships
You might be having one or more memberships that are not as worthy as you pay for them each month. For an instance, if you pay for your fitness club and visit it just twice or thrice a week you should schedule some other free activities like jogging, yoga, etc. Similarly, if you pay for an e-book website but can’t get much out of it you can consider borrowing magazines or books from your friends or a public library.
2. Revamp your wardrobe during sales
It is quite common that we are eager to get rid of old stuff and wish to replace them with the new. But to grow your bank balance you should wait for a sale to show up for your shopping. After all, you don’t even have to wait for a whole year for sales since they are quite frequent nowadays. But you must constrain from subscribing to email letters of too many websites. This will keep your expenditure low and savings higher.
3. Rent out the extra space
If you have extra space it is incredibly wise to rent out the second or third room of your apartment for extra gains. On the other hand, if you are paying EMIs for the property you are living in, the generated rent would somewhat fund the instalments too. You can even consider renting out your entire home to short term paying guests if you plan to go for a long vacation or a business trip.
4. Consider a term deposit
We often have our money sitting idle in our saving accounts generating low interests. Whereas we have an option of investing our bank balance as a lump sum in a Fixed Deposit (FD) account or by contributing little by little every month in a Recurring Deposit (RD) account. FDs and RDs helps to grow bank balance by offering higher interest rates than a savings account. Also, you can terminate your term deposit as and when required with a penalty.
5. Maintain Monthly Average Balance
Bank accounts require you to maintain a certain minimum balance called Monthly Average Balance (MAB). Failing to maintain the same, account holders are charged a penalty each month calculated on the deficit amount. The charges for non-maintenance differ from bank to bank and location to location. Therefore one must be aware of the balance in their account. Also, you must restrain from having too many accounts to avoid the unnecessary hassle of maintaining the minimum average balance in every account.