In a developing country like Pakistan, majority of the people are employed and earn a fixed amount of salary, to make ends meet, saving money becomes a necessity. Following are 25 ways of saving money on a small-scale as well on a large-scale while living in a country like Pakistan:
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DOMESTIC LEVEL SAVINGS
One must start from the lowest level to attain large amounts of yield and so the effort starts from the very basic organization that a salaried person needs to save a considerable amount of money.
1. Eliminate debt
Focus on putting your saved money to paying off debt firstly so that you may later save the money going in debt and use it on your own self.
2. Everyday savings
Try to use less money each day and save up the extras on daily bases. When the daily savings add up at the end of the month, the amount is often considerably large and substantial.
3. Sell things not in use
Appliances, extra cars, computers, books etc. are often kept at houses just for the sake of it, adding up to the money that had been spent on them, going to waste. Sort these unused things out and sell them for as much money as possible to save yourself the resent of spending money on useless items.
4. Make a budget
A salaried person always finds it hard to decide where to spend the limited amount of money that he/she earns. At the end of it all, savings get the lowest importance or no importance at all, to save yourself this trouble, develop a well- organized budget.
5. Set saving goals
While developing a plan for your savings, first decide what are you saving for so that it may become easier for you to divide your money according to the amount you need saved and the time at which you might need the saved money.
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STAYING IN BUDGET
6. Put aside the savings first and then form the budget
If not put aside in the very beginning, it may get used up and besides the daily savings there would be no other alternative of saved money left.
7. Keep a count of the budget that is spent
To keep a check on whether the budget is being followed or not, count the money used daily.
8. Psychological preparation for self-frugality
This is perhaps most important for an average salaried Pakistani because a lot of psychological effort is required for saving earned money.
9. Keeping a bit out for emergency
Keep some extra money out in your budget for emergency use. If the money is not used up at the end of the month add it in your monthly savings.
10. Annualized Spending
If you eat a 20 rupee snack daily at some point of the day, it means you spend a definite 7300 rupees every year on one particular snack, so it can be saved if required.
11. Cooking food at home
Make yourselves healthy economical food every day to meet your financial needs instead of spending money in restaurants and canteens.
12. Vacationing near home
Instead of spending excessive money on outstation trips, prefer vacationing in your own vicinity, spending as little as possible.
13. Minimize utility without resent
Efficient utility of the in-budget necessities can be very helpful for low waged employees. No resent helps in staying positive and saving up energy for more and better work for better earning, ultimately increasing the amount of savings.
14. Shop effectively and only for necessary things
Branded clothing in seasonal sales attract a lot of customers. Buying such items is a waste of money.
15. Spending only on absolute necessities
Oftentimes we get distracted by the allure of fancy products in the market which we have no need for. Try to save your money by only buying what is necessary.
To save money on a larger-scale, people in Pakistan typically make the following investments on their own:
People buy properties and then sell them when they require their saved money. A plus point about this is that the cost hardly ever reduces and there is no loss.
Buying gold is risky in the sense that its price fluctuates daily. However, it is a popular way of saving money because the amount of money that is not sufficient for property is always sufficient for gold.
18. Renting properties
People often rent out their properties and then save money that they receive as rent.
19. Side businesses
Like the above-mentioned investments people invest money in various businesses, hoping to receive more and meet no loss, this way is also unreliable.
Committees are formed at community level and the members submit a fixed amount every month to the head. The total is then given to one person of the committee each month.
LARGE-SCALE SAVINGS OFFERED AT INSTITUTIONAL AND GOVERNMENT LEVEL
21. NIT units
National investment unit trust offers certificates to people who want to invest and their money becomes a part of the units’ fund. They then distribute the money amongst the investors.
22. Shares In stock exchange
Different factories need investments and they sell shares, people buy these shares and the yield of the factory is distributed amongst the shareholders.
23. Prize bonds
Government launches certified prize bonds of different amounts. People buy these bonds, the money received by the government is used up and the profit is sent out to buyers through ballet system.
24. Qaumi bachat scheme
A scheme offered by government similar to prize bonds. They sell out special saving certificate, defence saving certificate etc.
25. Insurance policies
Insurance companies receive money from people who mean to save it and insures them their required money at the time of need. Different types of insurances include health, life, education, marriage etc.
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The story of savings starts from the basic level to a large-scale level. It is not difficult even for employees with low wages to save money if they follow the recommended options efficiently and without break.