Did not get a good increment? Tried and tested ways to control your spending and save more

Well, let’s be honest. Most of us find motivation to get up from the bed and slog in office every day majorly because of the salary that gets credited in our bank account every month, isn’t it? When it comes to the appraisal time, it is obviously a turn off when the salary raise is not as per your expectations. But instead of letting a bad increment take a toll on your savings and lifestyle, here are some smart ways to manage your finances better and secure your future.

Whatever is the amount after the raise, do not look for ways to splurge this extra income and make it a part of your monthly expenditure. Add this extra money, even if it is 1000 bucks, to your already existing investments or set up a recurring deposit. Remember, these little savings done over the years would come to your rescue on rainy days.

Using a credit card is quite convenient and most of us realise how much unnecessary money we have blown up in a month only when we see the bill. Needless to say, mindlessly using these cards is one major reason we find it difficult to stick to our budgets and efficiently manage our finances. Hence, make it a rule to shop using your debit card, cash or any other payment mode that deducts money directly from your account. Keep your credit card only for emergency purpose and you will be able to track your expenses much efficiently.

Managing multiple bank accounts can get quite confusing and tedious at times. Try maintaining two accounts, one for your savings and investments and the other one for your daily expenses. Make sure that your transfer some pre-decided amount to your savings account the day you receive your salary and use the rest of the amount to manage your finances. Just like business magnate Warren Buffet says, “Don't save what is left after spending; spend what is left after saving.”

We understand that your expenses might rise due to inflation and your bad increment might take a hit on all the stuff you have been eyeing to buy since months, but that’s no excuse to stop making investments. Think about your short and long term goals and look for ways to smartly invest your hard-earned money. It could be SIPs (Systematic Investment Plan), real estate, stock market, mutual funds or anything else, just make sure you calculate all the risks involved and make an informed decision.

Most of us are a victim of impulsive shopping, especially online, and later repent making the purchase. The next time you are tempted to buy something, question yourself whether you really need the product or not and wait for 72 hours before buying. There is a high probability that you might even forget that you wanted to buy that product!

Well, stay honest to yourself and think about the reason why you are still working for the organisation despite getting a bad raise? Is it the comfort of your job? Or, you love what you do and money isn’t a priority for you? Maybe, it is the time you start looking for a new job and you never know, you might land up in a better place.

(All images used here are representational)