CRAFTING YOUR PATH TO FINANCIAL FREEDOM

Savings is not just about money it’s about freedom. But today Savings can be difficult due to rising cost of living, inflation or lack of financial literacy. But, we can also start savings with small amounts.As savings even in small amount can lead to significant change.

1.The 50/30/20 rule

There are many popular innovative strategies that provide fresh perspectives and potentially enhance financial well-being. Heer are some to consider

The simple yet effective method divides your income into 3 categories

50% for essential needs like housing, groceries

30% for wants like hobbies, entertainment

20% for savings, investment or emergency funds

2. ZERO BUDGETING

It is highly effective budgeting technique. In zero budgeting first calculate your income and then list all expenses and then allocate your income to each expense category including savings and debt payments.

3. PAY YOURSELF FIRST

Traditionally individuals allocate money for the expenses first and then save whatever remains. But, this method inverts it by savings as first expense.

Apart from this, we can also use following to make savings simple and easy

1. Using spreadsheets to track expenses
2. Budget apps
3. Open savings account and make savings automatic.

We can also set goals for our savings like buying a new house or vacation or retirement saving goals. When we attach a goal to your savings it’s no longer just savings it’s a step towards your dream.

So, set clear savings goals,monitor and adjust savings as per your needs regularly review your savings progress and celebrate milestones by rewarding yourself and achieving financial freedom.