If you are wondering about how to spend less and earn more, check out these tips. The freedom to manage your finances the way you want requires enough money whenever you want it. Though it might sound challenging, it is still achievable. Here we will talk about three tips to help you take charge of your financial goals.

Create a financial plan

It doesn’t matter if you are saving for a long term goal or a short term goal, it is essential to have a financial plan. Even if you are on a tight budget, a financial plan is an effective way to help you channel your money the right way.

While setting up your financial plan, it is very important to think about an emergency fund. An emergency fund will act as a safety net when you require money suddenly, and will not have to borrow. You should have three to six months’ worth of living expenses in your emergency fund.

Another good idea is to automate your savings. It is an important hack to save money on a regular basis. Open an online savings bank account and link it with your salary account. Set up an auto transfer so every month, money is automatically transferred to your savings account. Planning for your financial goals will help you save more.

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Resist unnecessary expenses
One very important thing to consider when you are looking to save money is to avoid spending on wants and focus more on needs.

Even if you are investing in a desire, consider how much value it is adding to your overall financial plan and how prepared you are for the purchase. If it is not adding any value to your goals and is beyond your reach, stop and reconsider your purchase. It is always better to save money to buy something you want than to use your credit card.

Live within your limits

Often times, we overlook this point and get carried away by FOMO spending and social pressure. But learning to live within your limits is an efficient way to secure your finances.

If you want to buy a house, learn everything related to it, including the amount you need as a home loan to purchase the property, current interest rates, property tax, and the EMI you will have to pay to the bank. Knowing all the facts will reveal whether you are living within your limits so that you can save the maximum amount for your goal.

Living within your limits also means judicious use of your credit card. A tangible credit card bill is easily payable, whereas too much credit exposure is not good for your finances and impacts your credit score. A bad credit score will affect your future credit requirements.

Final thoughts
Saving is possible if you are a bit disciplined and don’t overspend. Follow the above mentioned tips and we hope you will end up saving more. A balance between your expenses and your savings will determine your financial freedom.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.