Eight Ways to Save Money and Become Rich

Penny saved is a penny earned may sound like a cliche, but still holds as much significance as ever. Given today's uncertain job and financial environment, money management has become even more crucial. Though there are many investment options available for small investors, that is not to undermine the importance of saving habits. I have practiced saving for many years and I can say with confidence that small savings can really be a saving grace for you and your family. It is a great option for people who are looking for Low-Risk High Liquidity. Whether a homemaker or a working lady, it is vital for you to save money and be secure. I encourage you to save, whether for your future, contingencies, your children's future or marriage, etc. So, I suggest you some important tools for saving money and becoming wealthy. Hopefully, you will find these helpful.

20-25% Rule- At the beginning of my career, I learned the principle of saving 20% -25% of your income in a book. And I saved 20% of my salary on monthly basis in the RD. Recurrent deposits. I accumulated lots in just 2 years of savings.

Make Small Bank Term Deposit (RD & FDs) Even though there will always be pressure on you to place your money in investment plans rather than savings, from my personal experience I have a lot of faith in small savings and I learned this from a friend. She told me that whenever she was left with extra money, even Rs. 10,000 or more she made a fixed deposit. You could think of putting your money in 5 yr FD or can choose to save monthly in RDs, which are more practical things to do.

The rate of interest that you get on RDs is higher than that in FD. The fixed deposit has one more drawback of TDS, Tax Deducted at the source. That means TDS will be cut at the time of maturity so actually, you'll end up saving only 6% on your fixed-term deposits. Recurring Deposits, especially, in the public sector and cooperative banks give you higher returns than private banks. But if you have a large sum you can think of saving in a Fixed Deposit scheme for a minimum five-year term.

SIP - Systematic Investment Plans - These are a great option for small household investors. But, this is an investment and not a saving option. So, will cover another topic.

Avoid impulsive buying- Ask yourself do I need it? Shop only when you need. Not even window shopping for this might entice you. Don't buy just because you are getting a good deal. Buy only what you need.

Create a List to assist - Make a list of items that you need to buy then go grocery shopping. The listing will assist you to save 10-15% by not buying things you really don't require.

Save @ Kitties? Sona is part of the kitty club of 15 members that's run in her condominium. Every month putting in Rs. 2000 Kitties should be may not be the thing for some, but for some these become important means to save money.

Watch out for Sales. Usually, big stores have end-of-season clearance sales, mainly 1^st week of February, July, and October. The sales can go as high as 40% to 50%. If you are spending Rs. 5000 per quarter on your clothes, for example, you could save 1500 -2500 on that just by buying from the sale.

Record your saving. Make use of the smartphone of yore for saving. How? As you practice the above tips, record each time you saved even 100 bucks on a particular date. As the numbers will grow, your zeal to save will go higher too.

Separate Bank Account for saved money? Having and managing two bank accounts is not a difficult job given the net banking facilities. Keeping your savings in a separate account will insulate it from impulsive buying.

We believe you are savvy women out there and must have your time-tested ways to save. So, why not mention it here in the comment box below? If you liked this article, you could encourage WOO by sharing. Happy saving till then!