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25 September 2017Last updated
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Ask the expert: ‘I’m unable to save money efficiently’

Our financial expert suggests how you can save money efficiently

FR_240716_Dhiren_Gupta_AIZA7
20 Sep 2017 | 01:53 pm
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I’ve not been able to save enough money for several months now. Can you suggest some useful tips to save money efficiently?

Well, there is no immediate reliable method that could instantly increase your savings pool. I believe saving money needs self-focus, discipline, determination, and desire deeds, as it depends on individual’s circumstances. However, one needs to take constructive steps to achieve that and should work on tailored realistic savings plan to meet the long and short- term saving objectives.

Saving is a challenging task to start and more often we may lose track. So it requires tremendous resolution and willpower to achieve your desired goal. To uphold this, identify the purpose of saving. Once you know the reason, it becomes easy to achieve your desire. Planning and budgeting is another crucial step to accomplish the goal. Once you determine that it’s easy to follow. Split the income with budgeting rule of thumb 50/20/30 where 50 per cent of your income goes towards needs, 20 per cent towards savings and 30 per cent towards your lifestyle (wants). To achieve the savings goal you need to have a perfect equilibrium between needs and wants.

Keep yourself in the non-negotiable bill category and set aside the amount to your savings. Next segregate the income for needs and wants. That’s the key to saving. Make sure you set that extra/non-negotiable bill amount in a bank account so it works for financial accumulation.

Record your expenses. This exercise can monitor your daily spend activities which could track outflow budgeting. Download a mobile app to easily record your expenses and which could further be used as a comparative analysis to understand where your money is going.

Identify the savings tool. It’s important to know about your saving pockets and time horizon, based on your short and long-term commitments. Once you kick off, prudently keep aside a 3-6 month comfortable expenses cushion for a rainy day. This money could be either in cash or could be kept in an accessible saving bank account. These are a simple useful money-saving tips. Good luck.

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Dhiren Gupta

Managing director of 4C Mortgage Consultancy, is a financial expert