You may have to pay towards your debts but at the same time you should work towards building up on your savings. Here is what you can do to build up on your savings even when you have a lot to pay towards debt each month.
- Check the interest rate of the debt – You could go and shop for your loan to look for places that give you the same amount of loan for the same tenure but at a lower rate of interest. This way you will be saving more. Your bank would also come out with schemes where you pay a small amount to lower the interest period of the loan. It is wise to opt for such schemes.
- Save any bonus or any extra money that you receive. If you get a bonus one month or get some extra money from somewhere instead of spending it on making purchases save it. This helps to add on to your savings account and you are able to build it up.
- If you are paying a very high rate of interest toward a particular loan then check if you would be paying a lower rate of interest had you taken a personal loan. In that case you should consider taking a personal loan or some form of a secured loan and get the loan with a higher interest rate closed off soon.
Spend wisely on your daily needs. The amount that you do not spend is the amount that you save. Work out your monthly expenses and see where you can save on something. You may be spending extra on entertainment or making purchases that are of no use. Write down your daily expenses and figure out where you can save money. Also, consider making use of the great coupon deals because these do let you save quite a bit of your money.…