Plan to avoid financial stress in 2019? Here are five tips for you

With 2019 almost round the corner, discussions on how to save more money have absorbed most households. Financial planning is a problem that numerous families/individuals encounter and often leads to increased liability and subsequently lead to financial stress.

Contrary to belief, it is not just the poorer section of the society that finds it hard to save money; rather a whole bunch of the urban population struggles to save money on a monthly basis. It could be due to a host of reasons including unnecessary spending, non-maintenance of a log and much more.

Having said that, here are few tips that you can start following immediately to save more next year:

Maintain a logbook

If you are spending too much, first thing that you should consider is maintaining a logbook. Though many consider it as an added responsibility, maintaining a physical or digital logbook helps keep a tab on all your monetary transactions. You can update it on a daily basis, preferably before going to bed. This process will not only help you identify your spending pattern but will make you more disciplined a trait necessary to save money. Once you get the hang of it, you will at least know exactly where you are spending more and try regulating it as per requirement.


Investing may seem boring to many considering that there is a period of wait. On the other hand, some individuals are skeptical of investing citing too much risk. However, you should know that there are various schemes to choose from, and investing in each one has its own benefits. For instance, if you invest in a Public Provident Fund (PPF) or a Fixed Deposit, there is hardly any chance that you would lose money unlike equity or stock market trade. If you are planning to make your first investment in 2019, you should make it a habit to repeat the process at regular intervals. Repeating this process over the years can make you significantly richer.

Cutting down on expenses

If you are trying to increase savings, you have to sacrifice on unnecessary expenditure. It is a simple trade. For instance, you could loosen up on the branded clothing or make food at home to save a little more. There are various ways to cut down expenses but a lot depends on how you chronicle your spending habits. Once you spot the grey area, the next task is to eliminate all the extra spending and use that money to invest.

Go easy on the credit card

This is probably the biggest threat to saving money. The swipe-and-forget attitude has landed many in a pool of financial debt. Those paying an equated monthly interest towards credit card purchases not only miss out on saving more but also, after one point of time, fall into a debt trap – a situation where higher interest drags the repayment process to years. While it is not necessary that you pack your credit card away, all you need to do is resist the urge of swiping it everywhere.

Use your bonuses carefully

Make the most of bonuses that you will get in the upcoming year. Any amount of excess remuneration that you get should either be used to pay off large existing debts or to invest it in building a strong portfolio of stocks and government bonds, both of which will reap you more profit under professional guidance. However, the basic idea here is to not spend the excess amount that you receive and direct it towards an asset that will reap you long-term benefits.