5 best ways to save money for future

Most people have big ideas about how their future will go. However, if you want to make your dream future a reality, you need a plan. Whether it's a dream home or a honeymoon, having enough money saved is vital to give yourself and your loved ones the life you want.

Saving money can only become a habit once you know where to start. Here are five ways to start saving for the future.

1. Track your expenses — make a budget

Just as you keep track of your income, you also need to maintain a record of how much you spend. From house rent and repairs to travelling and dining out, every rupee counts. There are several apps or websites that can help you track your expenses in a convenient, easy-to-access way. You can use the  IDFC FIRST Mobile Banking App for tracking your expenses. Once you notice the pattern of your spendings, you will be able to prioritise essential costs and create a budget. It also helps if you keep a check on your savings account balance every day.

2. Spend intentionally — cut out non-essentials

The first step of saving for the future is to limit your overspending. Creating a budget allows you to identify the least essential expenses and concentrate on important expenditures. Even seemingly trivial expenses like dining out every other day or raking up a huge electricity bill can add up at the end of the month. Living a semi-frugal lifestyle can help you stay conscious of frivolous spending and save that money for the future.

3. Set savings goals — both short and long-term

Envisioning a goal can be excellent motivation for you to make consistent saving a habit. You can have multiple goals, like going on vacation or buying your dream car, and categorising them on whether they are short-term or long-term is a smart way to organise your savings. The amount you save for each goal will depend on how much you plan to spend and how much time you have. If you need funds for a particular goal in the next 1 to 3 years, it goes under short-term goals. Long-term goals would be anything over that.

4. Decide your priorities — start now

Simply setting goals is not enough. You have to keep them at the forefront of your financial decisions so that you can accomplish each one of them at the right time. Also, remember that while short-term goals might be more urgent, long-term goals like paying off debt and planning for retirement are also crucial. The sooner you start saving towards these goals, the more successful you can be.

5. Pick the right tools — grow your savings

Whether you're saving for the short-term or the long-term, consider putting money aside into a dedicated savings account. The interest you collect eventually adds up, and seeing your money grow can encourage you to keep up the habit. You can also consider investing in financial instruments that align with your goals and risk tolerance. However, make sure you do thorough research before investing your money in any instrument. There are a host of tools that can help you save and grow your wealth, so choose wisely.

It is equally important to find a savings account that is tailored to your needs.  IDFC FIRST Bank Savings Account helps you open an account within minutes and receive monthly interest credit on savings instead of quarterly. Offering an industry-best rate of up to 7% per annum, it will allow you to start getting more out of your savings.

Having money saved up can make you feel empowered and motivated at the same time. You will be better prepared for emergencies and fulfil all your goals.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.