Set money goals first
What are you saving for? Once you know the answer, you then start thinking of ways to save effectively. You pick your investment instruments as per your goal.
Save first and spend later
A lot of people take care of their expenses first and then save the rest. This often ends up reducing the saving potential, as you might not be left with enough to save. Instead, save before you plan your expenditure.
Make your budget
One easy way to avoid overspending is by laying out a budget. Try the 70-30 rule of saving, for starters. Here, you use 70% of your monthly income for expenses such as rent, food, lifestyle, etc. and 30% for savings and investments.
Be realistic about savings
It’s important to not get overwhelmed by your ambition to create wealth and cut back on necessities on a regular basis.