As global recessions are spreading like an epidemic, what is your best chance to survive and safeguard yourself if faced with the problems that millions around the world are facing?
The answer is as simple as ‘Start Saving’. Here are a few basic saving tips to get you started with the process.
Cut off on non-necessities
Carefully go through your credit card’s statements, and try searching for recurring monthly fees which you might have forgotten about. Cancel redundant club memberships and subscriptions to the magazine that you no longer read. And take a resolve that you will stop mindless spending of hard-earned money for purchasing lottery tickets.
Decide where to save
In case you are looking to save in order to reach a long term saving goal for fulfilling a dream, you must look to save with mutual funds and securities or the stock market (in case you are in the mood to take risks with your savings). These savings will be not easily liquid able and thus there won’t be any worry that they might be spent by you out of whim. The interest rates offered are far higher than the negligible rates offered with savings accounts. If you are looking for saving and investing options with a higher liquidity then you should aim at investing with short term government securities and bonds as they yield assured interest rates during a short time period.
Drop the credit card debt
Recently Indian nationalised banks have started offering the facility where you can transfer the credit card balance of one card (with another bank) to another credit card (of a different bank) at nominal rates. This will allow you to avail the low interest rates that a certain bank offers while keeping your credit card limit intact. Avail of this facility and save on expenses incurred due to higher interest rates.
Avoid late fees
In case you find that you are forgetful about your credit card bill settlement dates, you might be incurring a lot of expense as fines and late fees. You can avoid this by being a bit more attentive towards your credit card bill’s due date or by instructing your bank to debit the bill amount from an account automatically. Avoiding late fees can generate a lot of savings.
Try and analyse your spending habits and saving habits over the last few years. This will help you find out the accounts where you have been spending recklessly and without any necessity. Start squirrelling around for small amounts of money that you might save from a venture. This might include anything from avoiding buying your lunch at office and carrying homemade food or shunning using your personal car for distances that can be covered on foot. These small amounts will add up as a significant addition to your savings.
You cannot do anything to stop the global recession, but you can surely follow these steps and save up enough money for a secure and worriless future for yourself and your family.