Most of us want to save money but not all of us have a full proof plan to start with the journey of financial planning and saving funds. Without having a set plan to save money it is very likely that you might fall short of funds when in need. Hence, building the habit of saving money from the initial days of your employment will turn out to be a great idea for your future.

By making minor changes to your lifestyle and putting some extra efforts into maintaining the habit of saving money will make you habitual of saving a certain amount for the purpose you are aiming at. Here are some of the tips on which you can work to build your savings habits for a lifetime.

Determine Needs Versus Wants

Differentiating between needs and wants is the first step towards your saving journey. Understanding the basic difference between ‘this is necessary’ and ‘this is leisure’ will make a huge difference in savings. Mixing necessity with leisure will make you short of money. Budget up for what is important and ration accordingly to save those extra pennies for when in need to be more financially disciplined.

Budget for Your Savings

Creating a budget never goes off the plan while you are on the way of learning money saving habits. Making a budget does not mean that you will have to maintain a ledger, a small note in your planner on how much you earn, what are your needs and how much you can save in the particular month will be a great start to make a habit of saving a certain amount. Try to create a budget for each month so that you can follow the same pattern and it becomes your habit to function according to the budget you have created.

Keep Your Goals Realistic

For instance, if you have just started earning and you plan to buy a car in the next 3 months, it might be quite an unrealistic approach. If you live in a big city and plan to buy an expensive house, you will not be able to do the same with little savings. Hence, diving deep into something from the very beginning might not be a great plan. Plan and budget your funds and create a timeline for your goals which are realistic to reach and aim. Decide on an amount that is realistically possible to save in the timeline set for yourself to not put yourself under pressure.

Create a Savings Plan

We all understand the importance of financial planning in our lives. Life is a series of events and from all good to bad phase the one constant thing that stands like a pillar is money. Having a savings plan is a one-shot solution to learn the habits to save money. While we have already talked about budgeting, the next plan in action is to have a set plan for your savings according to the expenses and needs residing in your future.

Set up a Savings Account

If you want to make sure that you are saving money with the least efforts, you can opt for a savings bank account in a bank or a financial institution that will help you save money without taking full care of the same by yourself. With the security of the bank, you can open a savings account and earn interest on your saved amount that adds up to your saved amount. In the long term, this will be immensely helpful for your savings journey.

Take Advantage of Bank’s Technology

In the present frame banks come with different technologies that you can take advantage of while embarking on your savings journey. One such feature is Debit card EMI; with your savings bank account you will receive a debit card on which you can opt for an EMI while buying an item of your choice. There are many other different banking technologies that can be highly advantageous for you while you maintain your savings journey.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.