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Ways to save more money after your monthly expenses

Fuel, food, household items, clothes - everything is getting more expensive than it ever was - making saving especially tough for young people. While saving and investing regularly might sound tough, it actually is nothing but a healthy habit of sticking to a budget.

Let's say you earn ₹20,000 per month and wish to save at least 30% - which is ₹6,000. Here comes the difficult task of regularly keeping aside money no matter what comes up. If you feel you are short of money for your monthly expenses, look for alternative income but do not cut down on savings.

There are many ways to save money because of growing financial awareness - aided by social media influencers too.

Money Insider takes a deep dive into the world-changing potential of financial awareness. It brings together the top young voices from the industry which is educating millions of millennials, Gen Z and more.

One such influencer couple -- Abhiraj and Niyati aka Abhi and Niyu. Niyati started a YouTube page called, ‘Let’s make you rich’ that talks about the rules, principles and ideas to manage your finances.

The duo have amassed over four million followers across social media platforms. Featured in Forbes 30 under 30 of 2021, both of them aim to offer solution-oriented content to its fans.

Abhiraj and Niyati have shared a few interesting ways to save, invest and increase your income.

#1 Invest in instruments with fixed returns
The first rule of investment is ‘do not put all your eggs in one basket’. So, you should diversify your investment to mitigate risks. For example, invest some savings into bank fixed deposits, mutual funds, government pensions schemes and so on.

The idea is to invest regular amounts in these investment classes for a long period of time and generate good wealth. Diversifying is important because it keeps your portfolio away from being too heavily weighted towards one company or a sector. This helps in spreading the risk and ensuring your investments are sound and protected in the long run.

#2 Some extra bucks on the side
In the era of the Internet, earning a few extra bucks doesn’t seem very difficult. In fact, one can earn extra income from the comfort at home without stressing too much. There are freelance jobs you can take up like writing content, designing websites, digital marketing or graphic designing. Here you can work at your pace and be your own boss. Yet another way is to start a blog, create a YouTube channel, tutor children, bake cakes and so on.

#3 Evaluate your spending habits
Analyze your spending habits to understand if some costs are unnecessary and can be cut down like credit card bills. Avoiding these expenses can save a good amount which can be directed towards investments.

Another easy way to analyze and improve your spending is also to prepare a detailed monthly budget. Junk food and entertainment are the most popular categories that fall under unnecessary expenses.

One can also segregate budget into wants and needs -- ‘needs’ includes necessary expenses like food, electricity, rent, internet and ‘wants’ include expenses that we do otherwise.

#4 Automate your investments and be consistent
When it comes to investing, regular investments are more beneficial than a lump sum. In a regular investment, one has to invest a particular amount every month irrespective of the price of the asset.

Some investment products like mutual funds have options like systematic investment plans (SIP) with options to automate your investments. They deduct a fixed amount every month from the bank to invest in a fund. This process takes out emotions out of investing and avoids any delays in putting your money to work. It will also make you a disciplined investor.

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