Smart Ways To Save More Money Using Personal Finance



Save Money using Personal Finance

Every person on this planet has a dream of having a comfortable life with all the necessities fulfilled. Moreover, family responsibilities and goals drive us to earn money and it is the main reason why we work so hard even with all the odds. But, due to the high cost of living and lack of knowledge on personal finance, we might spend all your hard earned money leaving very little for savings. And, lack of knowledge on personal finance is one of the major reasons why we fail to secure ourselves financially.

Moreover, when you are in a sudden financial crisis, the first thing that you will want is instant funds. In such situations, personal loans are the best option. You can use personal loans for any purpose such as sudden medical emergencies, wedding expenses, travel or vacation plans, growing or expanding your business, renovating your home, etc. And if you want your loan to get instantly approved, you can use Buddy Loan and get the loan amount within 24 to 48 hours of verification.

Thus, read this article further, to have a deeper understanding about Personal Finance and know smart ways to save your money without even realizing it.

What Is Personal Finance?

Personal Finance

Personal Finance includes the process of proper planning and managing all your financial activities such as generating income, spending wisely, saving more, investing and protecting. It helps in managing individual and family finances, setting financial goals and saving for emergencies.

Why is Personal Finance Important?

  • Personal finance helps not only in managing day-to-day finance but also helps in planning the future such as investing or planning for retirement.
  • You can easily identify opportunities to improve your financial situation.
  • It helps in budgeting for current and long-term future requirements.

Five Aspects of Personal Finance

The main areas of personal finance are Income, Spending, Saving, Investing and Protection. Let us look at each of these areas in detail.


Income is the first step of a financial roadmap. It is a source of cash inflow that you receive to support you and your family. His income can be used to spend, save  or invest. Some common sources of income are salaries, bonuses, hourly wages, pensions, dividends, etc.


Spending indicates the expenses incurred in buying goods, services or products. It has two categories: Cash ( your liquid cash in hand) and Credit ( your borrowed money). Some common expenses are rent, mortgage payments, tax, food, entertainment, travel, loan repayments, etc. Generally, expenses reduce the available savings and make it difficult to invest. When expenses or spendings are more, you will not be able to save money for emergencies in the future. Hence, managing where your money goes is equally important as generating income.


Savings are the cash that is retained for the future. If your income is more than your spendings, the remaining cash is kept either for savings or investment. Hence, managing your savings is an important aspect of personal finance. Some common forms of savings are physical cash in hand, savings bank account, money market securities. You can also use your savings if you have any sudden financial requirements.


Investing is nothing but buying assets that generate a rate of return with a belief that you will receive more money than originally invested. Before investing, you must be aware of the risks associated and know that not all assets generate positive rates of return. Hence, you must take professional advice before getting into investment. Some common forms of investment are stocks, bonds, mutual funds, real estates, etc.


Protection is nothing but securing yourself from unforeseen or adverse events using certain financial instruments such as life insurance, health, insurance, estate planning, etc.  You can take professional advice to select the right type of financial instruments to protect yourself from a sudden financial crisis.

Tips For Managing Your Finance

Financial literacy is important when you are planning your finances. It gives you the confidence and strength to handle any financial situation that comes your way without any forewarning. Hence, here are some tips to help you in planning and managing your finances in an efficient manner.

Avoid Using Your Credit Card Frequently

Credit cards are useful when you have insufficient funds to fulfil your requirements. However, if you use it frequently, your credit utilisation will increase which will in turn affect your credit score in a negative way. Moreover, you have to check your score frequently using Buddy Score to keep track of your credit health. You can improve your score by making timely payments, repaying your outstanding debts and maintaining your credit utilization to less than 30% of your income. Hence, use your credit card wisely and use it only during emergencies.

Be Aware And Educate Yourself

Learn about money management and financial literacy constantly and keep yourself updated. Read more books on personal finance and increase your knowledge. Having a basic knowledge will help you manage your money well and avoid you from spending money on unnecessary things. It boosts your self-confidence to handle a financial crisis without hassle.

Learn to Budget

The first step to plan your finances is to track where your money goes. Create an excel sheet where you can plan your expenses. Separate it into daily, weekly and monthly expenses. Keep some money for savings beforehand and track where you spend unnecessary money. And, do small changes wherever required to cut-off unwanted expenses and increase your savings.

Start An Emergency Fund

“Pay Yourself First” is one of the most frequently used phrase in personal finance. It simply means saving money in advance for your future or any emergency situation. It helps you avoid any financial trouble that may occur in the future. Also, make a habit of saving some amount of your salary to savings automatically. Sooner or later, this funds will add up to a big sum without you realizing it.

Get a Hold On Taxes

Learn about how taxes work when you begin to earn money. Calculate your taxes from various online tax calculators which are available online. It will help you know your gross pay, your tax deduction and net pay. For example, you can claim tax exemptions for house rent allowance (HRA), Leave Travel Allowance (LTA), etc.

Plan For Your Health

Plan for your medical emergencies well in advance such as taking health insurance and life insurance for protection. Moreover, it is also important to maintain good health by eating healthy on time, sleeping for at least 8 hours, avoiding junk food and exercising daily. Doing so will help you save unnecessary medical bills.

Also Read: Get The Best Personal Loan Interest Rates in India

Ways To Save Money Without Much Efforts

Save Money Without much Effort

Whenever you want to save more money, track where you spend more money unnecessarily and do small changes on a daily basis will help you to cut down expenses significantly. Here are free smart ways to save money without even realizing it.

Automate Transfers

Set automatic transfer from your checking account to your savings account every month. You will not have the need to transfer it manually and this money will accumulate slowly increasing your savings. This savings money will be useful to fulfill any goals, using fir medical expenses, planning for vacation or using as down payment.

Count Every Penny

Another way to save money is to track your spendings manually everyday. Write down the expenses incurred everyday and keep a note of all your spendings. Once you have saved a bulk amount of money, you can deposit it into your savings account. Though it is a slow way to save money, it will definitely help in saving a solid amount of money.

Plan For Grocery Shopping

Before you go grocery shopping, check your pantry and make a list of what you need for provisions and groceries. It will help you avoid impulse buying things that you don’t need. A proper plan is always beneficial when you want to save money.

Minimize Spending In Restaurants

You can avoid spending money to eat out in restaurants frequently as the costs are high. Instead, you can cook at home or reduce the frequency of visiting restaurants.

Reduce Online Shopping

Plan your purchase and budget your expenses before you plan to buy anything online. With varied options and categories, you will easily get distracted and tend to do impulse purchases. Hence, avoid visiting your shopping apps often and keep all your notifications off so that you will not get tempted by the offers.

Replan Your Cable Bills

If you do not watch TV, then unsubscribe channels that you do not watch and keep only minimum channels that are necessary. It will help you avoid paying extra for channels that you do not watch.

Replan Your Mobile and Internet Plans

With Wifi and fibernet connections, you can choose a single wifi connection for the whole house and avoid subscribing separately for mobile internet. Avoid postpaid plans and choose prepaid ones for your mobile services and choose the plan that suits your requirement.

Reduce Electricity Bills

Small changes add up to a big difference. You save your electricity bills by switching off lights and fans when its not required. You can use a gas stove to cook instead of an induction stove So, you can reduce your electricity consumption by keeping your refrigerator and AC off when not required.

Cancel Unused Subscription

You can remove subscriptions from various OTT platforms that you do not use frequently. Doing so will cut down a significant amount from expenses. Also, if you have selected any auto-renewal option, remove it immediately.

Set A Savings Goal

As soon as you get your salary, set a goal to save a specific amount every month. You can also take that amount out separately and shift it to another account dedicated for savings.

Track Your Spendings

Keep track of your monthly expenses, track where you spend more and cut down those expenses slowly. You can also use various budgeting app available online to make tracking easier for you.

Pay Off Your High-Interest Debt

Debt can hinder your plan when budgeting. Hence you will have to keep some amount aside to pay off your debts every month and then plan for your monthly expenses.

Put Your Savings In A High-Yielding Savings Account

When you save your money, make sure you put the amount in a high-yielding savings account to increase your money.

Budget Using The 50/30/20 Rule

To manage your money effectively, use the 50/30/20 budget rule. It simply means that you will spend 50% of your income (after tax payment) on basic necessities, 30% to your wants and desires and the last 20% to your savings or debts payments.


Money Management or Personal Finance does not require any specific degree in finance to specialize in. You can make use of these money tips and tricks mentioned in the article to manage your finances in an efficient way. Financial literacy helps boost your confidence to handle any unexpected situation without stress. If you fail to save sufficient money for any financial requirement, you can always choose to take personal loan to handle those expenses smoothly. You can use one of the best loan app called Buddy Loan to get instant loan online at comparatively lower interest rates from the top lenders in India.


What is the benefit of getting a Personal Loan?

Some of the benefits of personal loan are:

  • No collateral required
  • Minimum documents
  • Instant approval
  • Complete online process
  • Multi purpose loan
  • Flexible repayment tenure

What are the documents required for a personal loan?

You need documents for identification proof such as Aadhaar Card, PAN Card, passport, voter ID, etc. For your income proof, you must submit income tax returns, bank statements for the last three to six months, and an employment certificate for work experience.

What is the minimum credit score required?

You must have a minimum credit score of above 750 to be eligible for personal loans.

Where can I check my credit score and credit report?

You can easily check your credit score using Buddy Score and get a whole credit report instantly.

Also Read: A Detailed Guide To Get A Good Credit Score.

What is the minimum age required to apply for a personal loan?

You must be above the age of 21 to become eligible to apply for a personal loan.