10 Best ways to increase the savings in 2024

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A lesson learnt by the People in 2020 pandemic:

During the challenging pandemic period of 2020 and extending into 2021 and 2022, individuals have recognized the importance of judiciously managing their hard-earned money to prioritize financial security.

Amidst economic uncertainty and disruptions, the focus has shifted towards increasing savings and identifying optimal strategies for doing so. Previously, many individuals did not prioritize determining the necessary amount of emergency savings that could be readily accessed when needed.

Now, there is a heightened awareness of the need to build a sufficient financial cushion for unexpected circumstances, allowing for greater peace of mind and resilience in the face of economic volatility. This shift reflects a proactive approach to financial planning and underscores the value of prudent financial management during uncertain times.

Simply saying, Saving is sum of money which is left after spending on our household expenses.

How much money do you need to have, and to increase the savings?

The question arises, how much money do we required to have in our saving bank accounts or fixed deposits?

As a matter of fact, There some of the theories and mechanisms suggested by Financial Planners, financial advisors and finance professionals, the best ways to increase savings.

For instance, equal to few months of expenditure of a household or 6 months of essential items expenditure. Which may include, food, medicines, rent, gas and other utilities.

Ask yourself these two questions:

We need to understand two main things for the issue of “enough savings” for a rainy day or a year and whether we need increase our money savings substantially?

First, prominent question is to decide the total amount of money, we need to have liquid at all point of time for the survival of our families.

Second, because the household expenditure goes up every year due to inflation, we always need to strive to find best ways to increase the savings with little bit more than the inflation.

An amount should be decided as an emergency fund

Firstly, we need to understand that how much amount of money do we have to have all the time in our bank accounts or in a liquid form (in cash or cash equivalent).

Meaning, the money which should be readily available and not required any banking formalities, such as, selling a real estate, gold or any such paper money to seek best ways to increase savings.

Calculation of the approximate amount we require:

Before arriving to figure, we have to calculate the household expenditure we do in a year. We need to add all the expenses, as per their frequencies occurs during a particular year and find best ways to increase savings.

Keeping in mind, it may vary for different households, just for an idea of listing down, you may refer table, as follows:

S.No.Type of expenditureAmountFrequency (months)Total (Amt X Freq.)
4Vehicle Insurance$100011000
6Phone Bills$100121200
7Life Insurance Policy$100011000
8Health Insurance$5001500
9School Expenses$1004400
11Home Internet$5012600
12Electronic items$4001400
15Vehicle Maintenance$2001200
Total  $ 38600
Illustration for the expenses may occur in an year

Hence, it is ascertained from above calculation in the table, that a household may increase the savings above $38600 amount for a year, all the time and readily available form for the survival.

Moreover, the type of expenses and amount spend will be different for different countries and families. Above mentioned table only illustrates some of the basic form of listings of expenses.

As a result, when we have come to know the total amount, we should have with us all the time. It is time for our other question to be answered.

Second, how do we save above amount and at the same time, step up our savings on year-on-year basis?

“It’s not your salary that makes you rich, it’s your spending habits.”

– Charles a. Jaffe
best ways to increase savings
List down your budget and investments

Here are top 10 Best ways to increase savings in 2024 for you to action right away:

1. Create a growth mindset first:

First and foremost, is creating a mindset that you want to improve your savings with each incremental opportunity you get in your financial life.

Second, always have a goal in your mind around the savings figure you want to achieve, in a month or a week or even a year and work towards that target vigorously.

For instance, 10% of your total income will be saved each year and improve it by at least 5% every year is one of the best ways to increase savings.

2. Best use of your hard-earned income:

Predominantly, the measure should be taken to optimize our existing income or reduce our current expenditure, unless there are needs to be fulfilled or cannot avoid such expenses.

Remember, sellers will always tempt you to buy their upgraded products, but you need to decide, whether it is your need or just a desire which can be fulfilled in more better times ahead.

Besides that, if we are able to save only 5% of our income, then we have to strive for 10% savings from our existing income by reducing our unwanted or lifestyle expenses, say, regular dine-outs, watch movies, etc.

3. Create an Additional Income Stream:

We must also look for out of the box solution, which means, besides whatever the income source we are currently having, can one develop an additional income source based on my extra time, skills and hobbies one possess and how to increase savings?

Moreover, we must also enhance our existing skills and knowledge to earn more not only from our existing job, also, to start another income source.

For instance, someone who is working as accountant in a corporation, may educate students on accountancy and taxations for few hours is one best ways to increase the savings.

Therefore, search for skills needed in the market currently and capitalize on those to enhance your monthly income to improve your financial health.

4. Take help from your partner:

Encourage your partner to look for earning opportunities based their skills and experience.

For instance, we live a globalized world, there are number of skills which may be required by other parts of the globe, to improve their productivity and revenues.

Similarly, your partner can also explore their skills and work part time as a freelancer to contribute to some part of household bills payments to increase the savings.

5. Automate your saving transaction:

One of the most important factors to improve savings is to make it an automatic system. Just instruct your bank or your employer to invest a particular amount at a certain date to an investment class.

Moreover, you can instruct such a mandate, say for a fixed deposit, recurring deposit, 401K, sovereign accounts or EPF accounts, to deduct from your income, with a target amount in the mind.

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Resulting, your emotions and laziness will not creep up between your saving goals. And in few years and you will notice the corpus of money you developed, effortlessly.

I personally doing it for many years and saw unimaginable results, which I could not have done doing my full time job to increase the savings.

6. Save while you spend:

Fortunately, There are some of the saving avenues available in the market while you are spending.

For instance, shopping at the time of peak discounts, heavy savings on bulk purchases, black Fridays, festival sales and clearance sales are best ways to increase the savings.

Additionally, spending with your plastic money and digital wallets, from which you can get extra cash backs which may vary between 2% to 10%.

Caution: Don’t get carried away and do have an eye on your over spending and unwanted shopping.

7. Create Passive Income streams:

Work on to develop some of the passive income streams, so that you don’t have to work too much in the future.

Importantly, passive income is something, which provides income even if you are not actively working for some time and save on precious time and effort.

For Instance, developing an online course, website or a blog, buying stocks and bonds which provides dividend income, interest income, renting a condo or apartment and build businesses where your employees work for you are best ways to increase savings.

8. Take a professional Help to increase the savings:

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A registered advisor can be valuable to put your finances in order

I can not give enough stress on the point of taking professional help for all your personal financial matters.

Firstly, not only a financial planner will help you in your budgeting and advising on your credit card/ loan issues, but also, guide on investing your money.

Secondly, Investment advice in an asset class suitable to your risk profile or preferences and also, prepare financial plan tailored for you and your family.

Finally, like a doctor, you pay certain fee and you can plan your future life best suited for you. Subsequently, you do not have to wonder and take advice from people who could not grow or increase the savings.

9. Increase your knowledge:

The value of our hard-earned money cannot be known to us more than anyone on the planet. So, it is our duty to learn certain personal financial and investing principles to increase the savings.

As these things are not taught in school, we need to gather information from different reliable sources. Like, business TV channels, personal finance pages in the newspapers, magazines, blogs and websites.

These sources specialized in bringing financial literacy, in an understandable language to a layman.

“There comes a time when the mind takes a higher plane of knowledge but can never prove how it got there.”

– Albert Einstein

Even I started learning by watching a TV program on businessmen and later on investing in mutual funds. Evidently, from somewhere we have to start step up our savings and inculcate those learnings to our next generation.

10. Invest in yourself:

This is the most undermined factor to improve our Income and seldom pops up at a first place. A man can only earn as much as their skills, knowledge and experience he possess in his life.

Thus, always learn new things, for example, Business skills, communication skills, technological skills, digital skills, administration skills, etc. even if you are successful in your filed, master it further.

Especially, build on your hobbies & passions to pursue them professionally, like, music, sports, investing, writing, travelling, etc. and sky is the limit in these areas for money making and increase the savings.

Some of the Best ways to increase savings in a systematic manner:

Whether it’s saving for a dream vacation, securing a child’s education, or preparing for retirement, these simple yet impactful strategies empower individuals to take charge of their financial future.

Let’s discover how small actions today to increase the savings:

1. Invest monthly through SIPs to fund yearly commitments like health and life insurance premiums. Secure your family’s future without financial strain.

2. Opt for monthly SIPs for tax savings instead of a lump sum, easing the year-end burden and ensuring disciplined investment by increase the savings regularly.

3. Prepay loans with small extra payments each year and save for lump sum partial payments to reduce interest and loan duration. Achieve financial freedom sooner.

4. Use monthly SIPs to fund yearly tuition fees for professional exams, ensuring educational aspirations are met stress-free.

5. Plan to pay off car or personal loans in a year or two through disciplined SIP investments. Experience the joy of debt-free living.

6. Accumulate capital for a future business venture through lump sum investments and SIPs to increase the savings, turning dreams into reality.

7. Save a lump sum for next year’s family vacations while investing in SIPs for future financial growth. Enjoy unforgettable moments with loved ones while securing your financial future.

8. Allocate monthly SIPs for home renovation or improvement projects, making your living space more comfortable and valuable.

9. Use SIPs to save for a down payment on a new home or property, achieving homeownership sooner.

10. Invest monthly in SIPs to build a fund for children’s education or future expenses, ensuring their academic success and well-being.

11. Save through SIPs for retirement planning, securing financial independence and peace of mind in later years.

12. Create an emergency fund with monthly SIP contributions, providing a safety net for unexpected expenses or life events.

13. Invest in SIPs to accumulate funds for major life milestones like weddings or milestone celebrations, ensuring memorable occasions without financial stress.

14. Use SIPs to diversify investments across different asset classes, spreading risk and optimizing returns over time.

15. Plan for charitable giving by setting aside a portion of monthly income through SIPs, contributing to meaningful causes while managing personal finances effectively.

These ideas can help individuals achieve financial goals systematically and efficiently while incorporating disciplined savings and investment strategies into their financial planning.

In Conclusion:

In this materialistic world, we always come across alluring things to buy, if not you, your loved ones would do.

Most importantly, keep an eye on your Net-worth, always your own Assets should be more than your Liabilities. Moreover, put in a strategy and automate your savings, as a best way to increase the savings.

Decide, which is the most prominent part of your monthly budget, is it spending or saving?

And Tell me how do you plan your savings and how many areas you work consistently from above list?   


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