Home Finance 25 Ways of Saving money as per your Profession in 2020.

25 Ways of Saving money as per your Profession in 2020.

Many of us might be feeling or wondering about saving money but you are not alone.

Because according to statistics, nearly three in 10 (28 percent) U.S. adults have no emergency savings, according to Bankrate’s latest Financial Security Index.

The only way to save money is you should be conscious, figure out the utmost things in your life, plan the budget, etc.

However,these things you have heard before but not practically applicable in your life.

So, therefore, In this blog, we are going to discuss financial planning that you can implement practically.

And it’s according to your profession like a salaried employee, businessmen or student, etc

Also, remember one thing that these tips can be interchangeable can be applied to other professions also.

So there is no such hard and fast rule but can be applied for good results.

What’s you will find here.

  1. Why do you need to save money?
  2. Mandatory tips for saving money for all professions.
  3. Ideas for saving money if you belong to a salaried class.
  4. Tips for saving money if you own the business.
  5. Hacks to save money if you are a student or beginner.
  6. is it really difficult to save money?
  7. FAQ’S.

Why saving money is necessary for you?

It’s essential to save money for your retirement also as per the data 58% of Americans don’t have even $1000 as saving in their bank’s account.

And also you know the reality about today’s world and creates an awareness and urgency of saving money.

Unless you are wealthy or rich enough, many of our expenses need proper planning and budgeting to purchase.

Therefore you should define your aim for what you are saving to make a goal-based saving.

Header-decide your goal of the investment for saving money.

For example,

If you are a student then, you need to invest your time in learning and enhancing your skills and knowledge rather than buying stuff like phones, bikes, etc.which sucks up your expenses more.

To help you to learn and manage your money we have compiled a complete list that how you can start saving your hard-earned money and achieve your financial goal in less time.

Here are mandatory tips and ideas about saving money for all professions:-

We have recommended some of the common ideas of saving which will work for all the class of people.

And by practicing it I m sure you will be able to generate good money to get good results in terms of growth in your money.

Mentally aware and conscious.

The first thing you have to do is to be mentally prepared and aware of your expenses.

Because many times we spend our money without even knowing its importance or just by peer pressure.

Plan a budget to save money

Start with making the proper budget and track your expenses according to your utmost need and divide its proportion accordingly. Therefore you can 50/30/20 rule many of us may be familiar about it.

Header-plan your budget according to your expenses for saving money.

Remember rules are made for breaking it, so you can use this approach which fits suitably according to your life.

And I think you should keep on increasing your proportion of saving.

Track your spending.

You should be aware of where your money is going so you need to record your expenses and choose to spend wisely.

You may be surprised to see that skipping a cup of coffee leads to making a big change in your pocket.

Decide your priorities.

You need to prioritize your expenses and give importance to only the utmost important things.

Because its going to allocate to your saving and increase its proportion in long run.

Like for example, decide between television or mobile phone and no need to recharge both may lower your expenses.

Header-one of the important tip to save  money is to prioritize the things which is utmost important for you.

Set goal to save money.

To save money you need to have the short and long term goals which will motivate you to save money.

For example:-

Short term goals  Long term goals  
1.Emergency funds(3-9 months for living expenses).
2.Vacation planning.
3. Buying a new car.
1. Buying a home or its down payment. 2.Children’s education
3.Retirement planning.  

Switch to the cheaper cell phone plan.

As per records, Today’s average Indian uses almost 7.6 GB of data per month, which was 29 times higher than the usage in 2014.

So it’s better to track how much data you used in a month and pay accordingly.

Give prevalence to WiFi hotspots and change your plan according to your need. pay only for it also use WiFi.

Saving money automatically.

You can make a particular amount of auto-debit money each month from your account and save money according to the proportion you have decided earlier.

Instead, you can invest it into any fixed deposit, mutual funds, or other investment options for better returns and growth.

If you do not have knowledge about investing then read our guide about mutual funds.

So we have given some of the practical and interesting tips which would add up some money into your pocket and divided it as per your profession in life.

Ideas for saving money if you belong to salaried class:-

info-graphics about tips for saving money for salaried class people.

Instantly add up money into your wallet or account.

You should instantly add up money into your digital wallet or account so that you can’t use it further and can see the difference from your past savings experience.

For example

You have bought a T-shirt worth  ₹500 and after bargaining, it reached to ₹400 then add  ₹100 to your digital wallet like Paytm, google pay.

Skip unnecessary meals and soft drinks from your daily schedule.

Many of us might be fond of tea or coffee lover and it’s not difficult to skip some of those(Coffee, tea, etc.)

But by doing, it would add up a lot of money in your pocket you will be amazed in the long run and you will ask how?

let’s take an example:-You saved ₹30 a day from skipping unnecessary stuff from your schedule.

So instantly without any delay add to your savings account and at the end of the month, you saved ₹1000(approx).

Also, you can invest in mutual funds. Guess what as per the simple calculation of 12% annual returns it became ₹10 lakhs at the end of 20 years of long term savings.

Now, I think you love to save after all you don’t need to sacrifice much just act consciously and add money into your pocket.

Retirement planning by adding money into safe financial assets.

All of us familiar enough we should keep funds for your retirement but not able to save much.

One thing you can do is to open accounts in NPS(national pension scheme), PPF(public provident fund), etc like these schemes to save money and would make enough pile of money for your retirement.

Build emergency funds.

As all of us know our economy is declining and as per sources the GDP growth of India up to Jan 2020 is just 4.7% despite that many of us still not aware of emergencies that may arise to your doorstep.

So from now, the first thing you have to do is to separate some funds according to your salary, experts say at least of your six months’ salary into a different saving account.

For example:-let us say your salary is ₹25000/month so you have to save at least ₹1.5 lakhs and put it down to different savings accounts for your future emergencies and don’t touch it until required most urgently.

Prefer home loans instead of personal loans.

Many of you might have read in articles of saving money that you have cut out your debts.

But its something different because we are not aware that home loan interest rates are 5-6% cheaper than a personal loan.

Hence you can save a lot of your money by cutting down your interest rates.

Do investments in financial assets like mutual funds, gold bonds, stocks, etc.

All of us must have saved money in the account for some years but didn’t see any growth in it.

So, adding money in these mutual funds and stocks would give you good returns in the long run.

And also do goal-based investments and achieve your milestones from these investments.

For example.

You saved ₹5000 a month and start Sip(monthly installment like saving for your goal) in mutual funds.

Can you imagine as per simple calculations of 12% returns and after 20 years it becomes more than ₹66 lakhs.

and I think now it completely works upon you.

Tips of saving money if you own the business.

info-graphics of tips for saving money for business class person.

1. Get your GST redemption for your purchases.

Many businessmen holding GST numbers think that they will get the reimbursement(repaying of money) only on the raw material that they brought for their business but you can get it other than that like the other stuff used in business.

For example.

You used computers, laptops, cell phones, etc for your business and I think business can’t operate without them so by getting the invoices of those you get the straight 18% discount on your purchases and hence you can save a lot of money looks interesting so try it out on your next purchases.

2. Use credit cards for purchases.

Many of the businessmen are aware of the credit cards but hesitates to use it because of its high-interest rates.

But do you know that it gives you a float period of 45-50 days means you get the time to pay your bills after 45-50 days?

But remember one thing pay all of your money instantly at the end of this period otherwise you have to pay a large amount of interest rate.

So it looks interesting also because for this period you don’t need to pay any interest rate and hence save a lot of money monthly and would add up into your investments.

For example.

You purchase an item lets say on 1st January and pay with your credit card and you can pay its bill after 15 February and get at least 45 days period of using that money without interest rate. and hence save a lot of money into your bank account.

3. Save up your taxes under article 80 C.

It sounds interesting and convenient because many of us do investments in financial assets but forget to show it up to the government and pays a lot of taxes to them.

But the government gives relaxation to them who’s got invested in mutual funds or insurances so hence from next time ask your financial advisor to it so you can save a lot of your money.

For example:- Investing in equity type of mutual funds can save up to ₹46500 per year and hence again you can invest it to get good returns.

Hacks of saving money if you are a student or beginner.

explained about tips for saving for students.

As per data, More than 41% of the Indian population’s constituents of young students and teenagers and cultivating the habit of saving would add up a lot of money in less time.

1. Ask for discounts at every purchase for saving money.

All of the students are gone to markets or at the grocery stores for buying things but hesitate for discounts.

So one thing you have to do is to cultivate the habit of negotiation and ask for discounts for your next purchases.

This would definitely help you to add money instantly to your wallet.

2. Use public vehicles instead of personal ones to save money.

Explained about the use of public vehicle will add money to account.

Many of the teens got affected by peer pressure and persuaded to get their vehicle while going out.

But it would take money from your pocket and you would never save money each month.

So you need to take public vehicles instead of personal ones for saving money.

3. Start saving money and checking accounts.

Open your savings account and make a habit of saving money by proper planning and budgeting.

And also keep on track the account and know what are the things that are necessary to you at this point.

4. Buy a term and health insurance plan.

As a student, we don’t even understand the importance of insurance and these term plans.

Explained about the term and health plan benefits.

But buying a term plan will save a lot of money into your pocket in the future.

Because your installment will be got locked for the next 30-40 years and your money will not be wasted out in the future in these insurance plans.

5.Invest a little amount in mutual funds

Teenagers and youngsters are the future of our nation and if they will cultivate the habit of saving than a lot of money will be saved.

So as a beginner, you should save a small proportion of your money into mutual funds or at least in safe financial assets to grow your saved money.

For example.

As per simple calculation, You can start saving ₹20/day and invest at the end of the month.

And guess what?it becomes almost ₹8 lakh so this power of time value of money is the ”eighth wonder of the world said by Einstein.

6. Use logic of time to save money.

Still, many of the students are keen on spending money on the stuff that’s not needed the most and buys it due to peer pressure.

So you can reduce it by saying how much time you should spend to earn that money.

For example:

Let’s say you want to buy a cell phone which costs you as ₹20000 but take a minute and say how much hours you need to spend to earn that money.so make a saving plan according to you.

7. Discover your passion and monetize it.

As per the data, only 33% of Indians are employable, so by seeing this fact you will be amazed and should monetize your passion to earn extra income and invest it grow your money.

is it really difficult to save money?

So, by looking at these simple tips and techniques, it’s not quite hard to save money but it is the mindset to be build-up towards saving money.

However, despite your role and profession in life, these tips are valid for you who are reading this blog and learn these money-saving tips to enhance your growth in life.

FAQ’S

1. How to save money from salary?

You can save money into the different saving account as your salary got credited instantly invest in financial assets like mutual funds to grow your money.and also you can make long term goal based investments and save money to get those.

2. How to save money as a student?

As a student, we can save money in a lot of ways like using public vehicles, work as part-time, monetize your passion, understand the time value of money, start investing in mutual funds and stocks, etc.

3. How to save money without a job?

You can save money by selling you old stuff that you might you for a long time, by giving a space for rent, discover your passion, and monetize it.

4.How to save money for a holiday or a car?

One thing, You might open different accounts and save in them according to your priority also you can invest in riskier and less risky mutual funds which would help you to save money.

5. Where to save money for retirement?

You can do your retirement planning by investing a proportion of your money into safe financial government schemes like NPS(national pension scheme), PPF(public provident fund), etc and generate enough money for your retirement.

This is Randeep pursuing mechanical engineering and passionate about learning new things in life every day who is looking forward to enhancing skills that would help me in building my own empire.

Randeep kumar paswan
This is Randeep pursuing mechanical engineering and passionate about learning new things in life every day who is looking forward to enhancing skills that would help me in building my own empire.
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