Four rules to make the transition from splurging to saving

5 MinsMar 8, 2023

A lot of brands offer discounts during the holiday season. With the convenience of online shopping and the attractive offers available, it is difficult not to indulge in shopping. But if your spending leaves you with zero balance at the end of the month, you have moved to splurging. It is time to look at your finances and transition from splurging to saving without giving up on things dear to you.

Four rules to make the transition from splurging to saving

Let us look at how you can cut down on your spending and create a path toward saving this new year.

(1) Not splurging is saving

Splurging means spending a lot of money on things that you would rarely use. Before using your card to make a purchase, think twice about whether the item is something that you actually need. If you have to think twice about the item's worth, it means that you are splurging and not spending on a necessity. At times like these, simply hold back your credit card, exit the store and pat your back as you successfully save yourself from splurging.

Not spending is saving, but that alone is not enough. You need to put your money to work so you can make more money.

(2) Make the most of your savings account

The best way to start saving is by opening a savings account. A Savings Account is named so because it gives you interest for just keeping your money in it. Axis Bank’s Easy Access Savings Account helps you maximise your savings by giving you easy access to:

All these benefits are available through Online Savings Account, so you can access them anytime, anywhere, at your convenience.

Also Read: [A Savings Account for all your needs]

(3) Put your savings on auto mode

The 24x7 access to your funds (internet banking) is both a bane and a boon. While you can save anytime, you can also splurge anytime, making it difficult to stick to the budget you have set for yourself. To avoid the temptation of splurging, put your savings on auto mode.

Try following the 50:30:20 rule - 50% on necessities, 30% on wants, and 20% on savings. To save, you can start a systematic investment plan (SIP) in a mutual fund scheme of your choice. The FD interest rates have also improved in recent years, as the RBI has increased interest rates. You can divide your savings into mutual funds and RDs, and your savings account will automatically debit the amount on the pre-determined date.

When the money has already left your account, splurging is not an option.

(4) Start planning your finances

The above three rules will get you started so that you don’t delay savings until the next year. Once you start accumulating a decent amount in savings, you have to level up your game and learn to plan and manage your finances. Setting financial goals and gradually working towards them with a mix of fixed income and equity instruments can help you take control of your finances and allow you to splurge once in a while.

Make savings your priority with an Axis Bank Savings Account.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.