Saving Money – A Guide to Achieving Long Term Success


A useful strategy would be to take a good look at your expenses, and create a budget. Second, cut back on your spending.

A good way to start off would be to have a plan and follow it. Once you get the hang of it, you will discover that the money-saving journey is a smart way to financially secure yourself.

  • Track Your Expenses

First things first, look at your spending patterns of the last few months; identify the areas that you have splashed the most cash on. A useful tip here would be to use a conventional journal to write down all your daily expenses. For the tech-savvy, there is a world of useful apps out there that does the job.

Once you have a list in front of you, divide your needs against wants and luxuries. You will now see the pattern in which you most spend on. You will be surprised how much takeaway food you have ordered in the past few months.


  • Set Short-Term and Long-Term Saving Goals

Now that you have an overview of your spending habits, it is time to set some realistic short-term and long-term savings goals.

Realistically speaking, this habit comes in handy in a variety of ways. It helps identify your future expenditures in advance and helps you budget for it. This automatically tells your brain to limit your spending habits.

Difference between the two:


Implement a short-term savings goal when you need to save money fast. Maybe you are saving $500 for a short course on financial management. You could also start an emergency fund and set a short-term target of $1000 in four months.


If you have an extended goal, commit to a long-term savings plan. A few examples include saving for a down payment on a home or a college fund for the kids. If you are looking long term, think about retirement.

  • Diversify Your Saved Money

Your saved money needs a home where it can be parked safely. Consider options that will yield high interest and returns so that your money is not stagnant. Some investment options might be riskier than others. Hence, depending on your risk appetite, allocate money that is best suitable for your needs.

Few options would be:

Bonds and Stocks are two popular ways to invest. Both are ideal for long-term goals, like retirement savings. Stocks carry a higher risk, and you could potentially lose money. However, if you are willing to ride out the market’s ups and downs through the years, it could pay off. Bonds tend to be lower risk — but so are the returns.


Savings Account allows you to easily access your savings while also earning some interest. This may be a safe option if you are not familiar with investing and trading.


A Fixed Deposit (FD) will earn you higher interest. However, FDs have fixed maturity rates. That means if you put your money into a five-year FD, you will not be able to access it early, or you could face penalties and fees.

GS_logo_FA.png