We all have certain goals we set for ourselves, but more often than not, encounter a form of ‘starting trouble’ when it comes to working towards achieving them. Furthermore, we all know that cutting down on spending and saving more is the best way to start working towards these goals, yet so many people find this difficult. While some people don’t have a surplus, owing to the fact that their high expenses leave nothing for investments, others choose to put off saving for later in their lives by prioritising present wants over future needs. If you fall into either of these categories but are keen on understanding how you can do everything within your means to increase your savings in to achieve your goals, then you have come to the right place. In this article, we will be going over various opportunities you can take advantage of, to reduce your costs, save more and work towards achieving your goals. 

• Optimise your utility consumption

Many people have become accustomed to paying high utility bills, owing to increased rates of consumption in today’s society. You can save a substantial amount of money just by reducing these habits. By keeping your AC temperature at a moderate level, and ensuring that no appliances are on when not being used, you can reduce your electricity bill. Streamlining your DTH and online subscriptions is also a good way to save more, as there are several overlaps in their services. You can also consider sharing subscriptions with friends. Apart from this, you should commit to mobile and internet plans that suit your needs; not everyone requires the fastest connections with the highest limits.

• Budget your luxuries

The amount we spend on luxuries like entertainment and comfort is often more than we realise. Set particular times and make a budget for things like movies, music concerts, sports events and so on, to ensure that you don’t overspend. This should also include the expenses apart from just the ticket, like popcorn, snacks, etc. You can also save more if you cook your meals at home and limit eating at expensive restaurants or ordering food for special occasions. Finally, shopping for clothes, shoes, cosmetics and so on can have a huge impact on your ability to save; don’t spend more to look good.

• Don’t bog the bonus

You could receive a bonus from your employer for various reasons; for a festival, as an award for your performance, if the company exceeded its targets, or for several other situations. While many people use their bonus to satisfy their immediate wants, it is important to remember not to flush your bonus into such things. Channelling the bonus into your savings offers a substantial boost when it comes to working towards your goals – by holding back on momentary desires, and thinking about the long-term.

• Invest your increments

If you are a salaried professional, then you can expect a yearly increment from your employer. While in some cases this increment is nullified owing to inflation, more often than not there is a surplus. Instead of adjusting to the surplus and raising your standard of living, increasing your investments is the best way to work towards your goals; especially if you are in the earlier stages of your career. It is good to think about committing to strategies like a Systematic Investment Plan (SIP) or a Recurring Deposit (RD), to ensure that you lock in the surplus amount as soon as you receive a salary, and don’t spend it on anything else. 

• Increase your tax efficiency

There are several ways to improve your tax efficiency and save more at the same time. Start a public provident fund (PPF) account when you begin your first job, and contribute towards the national pension scheme (NPS). In addition, kickstarting your savings for retirement early, these investments are also eligible for deductions under section 80C up to a total of INR 2 lakhs per annum. Apart from this, deductions can also be claimed for payments made towards life insurance and other investments in equity-related saving schemes (ELSS) like stocks, mutual funds, etc. Suppose the amounts reclaimed are not necessary to manage your expenses, you should definitely re-invest them to maximise your returns. Here, consulting a professional financial advisor is a good way to ensure that you avail all the deductions applicable to you, and learn about how you can increase your tax efficiency.