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As our world becomes more focused on convenience, our daily savings suffer greatly. Let's explore the areas where our paychecks are being depleted without our knowledge and how the Jar app can help.
"I don't have enough money left after all the expenses to save."
"I don't know which is the correct way and platform to save?"
"What if I invest money in something and I lose it? I don't want to take that risk."
You might have heard people saying some of these reasons for saving. According to a survey by HSBC, only one-third of Indians save money regularly.
While some don't believe in the concept of saving, others are unsure how to put it into practice. As a result, whenever a crisis hits, many people struggle to stay afloat.
One of the primary reasons behind the struggle to make daily savings is that we don't realize where our money is depleting. It is a significant problem for almost all millennials. A preference for convenience over savings majorly fuels it.
For instance, people now prefer to get their monthly groceries and supplies delivered to their homes. They would rather spend a few bucks than go out and shop in the local market.
When a cooked meal can be home delivered, why take the hassle of cooking? We don't realize how much we spend on delivery costs, service taxes, GSTs, surge prices, etc.
These could be the reasons why you are unable to save daily. These are only a few examples. Let's go over this in more detail and find the other areas where you spend money unnecessarily.
7 Biggest reasons why daily savings is so difficult nowadays
1. Apps and online payments make it so easy to spend money
Contactless payment and UPI payment technologies such as Phone Pay, Google Pay, Bharat Pay, PayTm, and an abundance of banks offering credit and debit cards have made spending money easier than ever.
According to a study by Visa, the usage of contactless payment has surged 6X, from 2.5% in 2018 to 16% in 2021. That's not all; RBI governor Shaktikanta Das reported that in May 2022 alone, UPI platforms processed 594.6 crore transactions worth Rs 10.4 lakh crore.
Now, you can buy anything with a few clicks on your phone. Furthermore, push notifications with enticing offers from various service providers make it hard to resist spending.
2. Impulsive spending tendencies
Be it online or offline, once in a while, we all love to indulge in buying something we love on a whim. Impulsive spending can be as small as ordering food from outside or buying a dress when you step out to buy groceries.
But when this becomes a frequent event, it can become an addiction, harming your financial future.
3. Using credit cards for daily purchases
True, credit cards are highly convenient to use when you do not want to touch your cash reserve or in an emergency. But, it can be dangerous for your financial health if you use a credit card for every transaction.
Failure to pay back the outstanding amount on time can cause you to pay late fees and exorbitantly high interest. Use credit cards only when you know you'll be able to pay back the money you own on time; otherwise, you'll end up in a debt trap.
4. High education loans and skyrocketing housing cost
Lakhs of students in India opt for education loans to pursue higher studies because they come with attractive offers like no collaterals, no prepayment charges, and fixed interest rates.
But the monthly EMI amount for these loans is so high that it dampens the happiness of getting a job. For instance, a two-year MBA course from a top MBA college costs a student over ₹15 lakh.
So, an education loan at a 10% interest rate pressurizes a 'just-out-of-college' employee to pay a monthly EMI of ₹30,000-₹35,000.
In addition, rent in tier 1 cities in India is astonishingly higher than in other cities. So the rent and monthly EMIs take up most of a millennial's paycheck, leaving almost nothing for additional savings.
5. Inability to follow a budget
Having a budget is a great way to stay disciplined about money management. While planning a budget is easy, following and practically applying it can be challenging for many people. According to an ASIC study, 27% of people who broke financial resolutions blamed their problems on a lack of willpower.
6. Savings account's poor interest rate
According to a survey done by BCCL, about 71% of Indians still use savings accounts to save money for the future. With the abysmal interest rate of 2.5%, it is harder to save, let alone build wealth for the future.
7. Peer pressure
We all love our friends. But not all of us earn the same money. So, going on trips with your friends every weekend, having parties, or spending on expensive lifestyle products to keep up the standards with your peers and friends is unhealthy.
Nowadays, it's simple to succumb to peer pressure and spend money without thinking of your financial future and budget.
Here's how you can do better with your Daily Savings
None of the points mentioned above are meant to belittle you. Many times we get stuck between a rock and a hard place. Hence, we have brought you an excellent way to save money daily without making any real effort.
All you have to do is download the Jar app.
Jar is a micro-savings platform that acts as a digital piggy bank for its users. It makes your saving journey extremely easy by letting you invest as little as ₹1 in 99.99% pure 24 carats of digital gold.
Jar app automatically invests your money in this well-known asset since it is backed by NPCI and the top UPI service providers on the market, encouraging a daily saving habit.
Here's why you should consider the Jar app for daily savings:
- It auto-debits the money from your bank accounts and invests in digital gold, making saving easy.
- The investment is made in pure 24-carat digital gold, so you can rest assured that your investment is safe.
- You can start saving with ₹10.
- Jar app makes withdrawing your saved money extremely hassle-free.
- Jar app makes you financially responsible by instilling a habit of saving money daily.
To know more about how to kickstart your daily savings journey, do read Jar 101.
Saving money regularly offers financial stability. It prevents you from spiraling into debt in case of emergency strikes. Having ample savings for some months is reassuring if you want to try a new career path.
But before you decide on saving, reflect on your current spending habits and examine the cash inflow and outflow. This will help you to identify where you are going wrong.