Not able to save money? Try the 30-day rule3 min read . Updated: 29 Oct 2020, 01:05 PM IST
By simply stalling your purchases for 30 days, you stand to gain, and invest a lot more money. Read on to see how!
The next time you are tempted to swipe that credit card to make a big-ticket purchase, think twice! Instead of coming back home with your prized possession; feeling pleased with the buy, make a note of it in your journal and review your choices after a month.
The 30-day rule to save money can help you build on your corpus as you become wiser about your spends and, therefore, your savings too! This one is a time-tested remedy for all those who have a habit of splurging their money on anything they see and are unable to allocate their earnings in the right places.
The rule is simple. The first step to being moneywise is to hold back before buying something expensive or which you don’t really need. Make a note of the item – write down all the details like description, price and the offers available. Now, tuck the note away for 30 days!
After a month, review your “wants". Ask yourself, do you still need it and is it worth the splurge? Chance are that things that seemed very attractive in the show window or on that online portal have lost their lustre, or found a replacement in something more practical or cost-effective. Sometimes, holding on also allows you time to research your expensive purchase and find the best deal, which also effectively helps saves money.
A portion of the saved money can be used to make an expensive purchase in the near future or plan that exotic vacation that seemed entirely out of reach before the savings began and the earnings were getting drained on small, and often useless, purchases.
According to experts, the 30-day rule is compelling not because you deny yourself what you want to buy, but merely delaying gratification. And these small savings will go a long way in building the much-needed corpus to save. As a first step, we must be cautious about where we spend our money.
It is also widely advised to start getting into the habit to save early on which could be with your very first paycheque. “Starting at a young age as an investor gives you most of the benefits, later. Make a budget for activities that include spending and start a SIP immediately, even if it means starting with the minimum amount required for SIP. You can also transfer your balance salary to a Liquid Fund," said Sanjay Gupta, financial advisor.
The 30-day rule is more if a lifestyle change, which will help bring you on the right track to savings, without really feeling the pinch of it, as it enables you to break that impulse spending habit. If you can break the habit, it can be the start of a long-term discipline of setting aside money to save and invest consistently for the years to come.
But there are some golden rules that you must keep in mind to make this a success. For starters, you need to tell yourself that this is a rule, not just a suggestion that you incorporate into your day-to-day life. This means that you must follow it at all times, and for all purchases.
Second, use this is to challenge yourself. Set aside a fixed amount that you will pull out of your income towards savings. It could be any amount that you are comfortable with – ₹500 a week or ₹5,000 a month. Seeing your savings grow will act as a great confidence booster.
Next, widen the scope of this investment. Create a financial goal for yourself and start a Systematic Investment Plan (SIP) to help you achieve it. Track your portfolio progress and see how you come closer to the goal.
Use a bullet journal for writing down the wants. Use a highlighter to mark out all the items that seemed good to have on impulse but which you later struck off your list. Watching your notebook colour up as this list grows over weeks and months will sure be fun!
So, what are you waiting for? Adopt the 30-day rule today, change the way to spend and save and become moneywise today. It is simple, it is easy to implement, and it is a good habit to have!
To know more, click here