How to nest your money well to achieve best savings goals?

Many people spend most of their time and energy on earning more money so that their family can lead a happy and financially secured life in future. But without learning the art of spending money and investing them in right medium for better returns, they may not be able to create a promising future for themselves and their families.

Our wealth accumulation plays an important role in our lives. On one side, it is a tool to fulfill our future needs and on the other hand it serves for satisfying your present needs. Thus, you have to work upon some sort of financial planning to produce better results out of your investments or some sort of savings plan.

Saving plans allow individuals to meet life goals by prudent management of money and finances. Thus, learning to manage money wisely is the first step towards better and bigger goal achievements. Expense management plays a crucial role while managing money. It is all about getting the right value for every rupee spent and appropriate decisions on the payment mode, that is, cash, cheque, credit card or equated monthly installments (EMIs).

The article gives few day-to-day tips, while working upon saving plans to build desired corpus for your family financial security:

Expenses:

Monitoring expenses will help you understand where you can save money and utilize it for your saving plans. Jot down every single expense of your month including grocery, electricity, fuel, phone, laundry, domestic help, eating out and entertainment expenses.  Try and curb things wherever possible. You can try bulk purchase with friends or relative that may give discounts and ultimately save few pennies for your plans.

Negotiation:

Negotiation plays a key role in saving money by giving best deals at times. With the rise of online shopping, you can get great deals on the web. Online shopping portals allow us to compare prices of various products and services and choose the best option. The money saved will definitely be pooled towards your saving plans.

Set savings goals:

Just like we set goals to achieve particular degree, marrying at the specific age or buying a car in particular year etc.; it is also important to have saving goals. Not only does it help you focus on, it can also help set a timeline for your savings needs. If you don’t have a clear indication of whether you are meeting your savings goals or not, it is easy for you to get distracted and decide to splurge on something instead of keeping aside the money for a rainy day.

Small or Big Make Start:

Often low income groups, unwanted expenses, ongoing loans or debts often discourage for savings. But it is advisable whether small or big savings is always a million times worth compared to a penny spent. Every savings plan has to start somewhere, and even a small amount will add up over time. The point of saving is to help you hit the long-term financial goals. The benefits received are of the compounding effects. So it is bound to gradually grow over the years. Even if you can’t buy them today with your paycheck you can surely be in a position to purchase one over time if you save. So save whatever you can and don’t be disheartened if your savings seems small. It’s a step towards something larger!

Automate:

Try and set an automatic mode of payments for your plan. This way you won’t concentrate on unwanted spending and your installments will reach on time. Automating your savings is effective. Today most financial institutions allow you to schedule automatic transfers from checking to savings, so you can set up your own automatic savings plan. Just remember to include the amount you’re saving in your budget so you aren’t overspending!

To conclude while working on Best saving plans, one third of one's net income should be used to service debt and your savings should be at least one-third the net income. Accordingly, the expenses have to be curbed within one-third net income as well.