Looking to save more money in 2024? It’s your hard-earned cash, and it’s only natural to want to maximise its value and leverage it in the best way to earn and save more. Inflation can erode your savings’ value and financial emergencies can strike at any time, making it more crucial to save wisely.

Remember, achieving financial independence doesn’t depend on age or profession. Everyone, irrespective of their starting point, has the potential to increase their savings with the right strategies. On that note, here are five practical tips that you can follow to boost your savings in 2024. 

  1. Open a high-interest savings account

Savings account interest rates are usually nominal. However, the INDIE Savings Account by IndusInd Bank helps you earn superior returns on your deposits, up to 6.75% p.a. The added interest over time means your money actively works even as it sits idle.  

Moreover, it just takes your Aadhaar Card and PAN card to open a savings account and book various types of FDs online. Whether it’s auto-sweep FDs or tax-saving FDs, you benefit from competitive interest rates that help you earn and save more. For instance, you can earn up to 7.75% p.a. on INDIE Fixed Deposits.

  1. Invest your savings in high-yield investment options

Wisely spend your hard-earned money and save a portion of your income to invest in different investment options. You can invest in stocks, bonds, index funds, real estate, ETFs (Exchange-Traded Funds), etc., that offer relatively better returns over time.  

Use a bank account opening app that integrates investment services and lets you diversify your portfolio directly from your device. Diversification spreads out your risk and helps achieve more stable and consistent returns over time.

  1. Avoid withdrawing investments by keeping emergency funds

An emergency fund acts as a financial buffer and prevents the need to cash out investments during financial emergencies, which can lead to missed opportunities for market gains and compound interest.

An emergency fund allows your investments to mature fully and capitalise on market trends. Thus, you benefit from better returns as your investments continue to thrive during peak growth phases. Also, it reduces the likelihood of incurring withdrawal penalties or selling at a loss, preserving your capital for future growth. 

  1. Consolidate debt

Consolidating debt into a single loan with a lower interest rate reduces monthly payments and cuts down on the total interest paid over time. This efficient management of debt frees up more funds each month, which you can redirect towards savings or investments.  

Moreover, the improved credit utilisation and timely payments associated with loan consolidation can help you enhance your credit score. This may open doors to more favourable borrowing terms in the future. 

  1. Align your credit card rewards with your spends

Choose a bank account that offers the best savings rates and customised rewards for your spending habits.

Strategically using cards for purchases in categories like groceries, fuel, and dining means you receive maximum cashback and reward points. These rewards can turn into direct savings or be reinvested into interest-bearing accounts, thus multiplying your financial benefits. 

Additional tips on how to save money in 2024

Look at some additional tips on how to save money to enhance financial stability and achieve long-term financial goals.

Set SMART goalsEstablish Specific, Measurable, Achievable, Relevant, and Time-bound financial objectives.
Try a no-spend monthChallenge yourself to a month of essential spending only to reset your financial habits.
Take the 50/30/20 approachAllocate 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment.
Automate your savingsSet up automatic transfers to your savings account to ensure consistent financial growth.
Make use of budgeting appsUse technology to simplify and optimise your budget management.
Optimise tax savingsExplore tax-saving options like Equity-linked Savings Scheme (ELSS) and tax-saving FDs.

Conclusion

Remember that beyond these strategies, your journey to financial independence also depends on discipline, consistency, and adaptability. Stay focused on your goals, remain flexible to adjust your plans as needed, and continuously seek knowledge to grow your finances.

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