As an employer, you must be very often overhearing conversations of your employees about their nearing empty bank accounts at the end of a month and their problems related to handling their finances. A lot of them must be struggling to keep up with their expenses and eventually must be thinking that they could have taken a different approach. Well, one of the hardest steps is also one of the easiest steps when it comes to saving money.
If your employees want to save money, the first step is getting serious about it and getting started. There are several save money tips that can be incorporated. This will allow them to get into a habit of saving money regularly and not getting caught in the spending trap. And savings will never go in vain; money saved today will be helpful in the future or during any unprecedented situation.
Top 23 way to help employees save money in 2020
You can suggest some ideas to save money to your employees that will help them to take the first step in the right direction and slowly build on it. All of the save money tips and tricks suggested by you may not be applicable for all of your employees but some of them if implemented can bring a positive change gradually.
Here are different ways to help employees save money:
1. Open a savings account
This is a rather simple and conventional technique which you can suggest for your employees. There are several banks out there that offer great interest rates on different products and savings accounts as well. It might be a good idea to quickly scan the different banks that offer better rates than the current bank. If your employees believe in having cash in their bank accounts, this move can help them earn a bit more in the form of better interest rates.
Expert Tip: To save money in India, a lot of newer banks are offering much higher interest rates than the existing banks.
2. Prepare a budget
This is probably one of the most commonly advised techniques by an employer for his employees to save money. Setting aside a budget for monthly expenses will help your employees to curb unnecessary spending and get into the habit of saving regularly.
One of the most classic breakdowns to save money is 50/30/20. According to this technique, they can use 50% of their income for necessities, the next 30% for some needs that they might have and utilize the remaining 20% as savings.
Expert Tip: The smartest way to “save” the 20% is to first save the money and then use the remaining 80% for the expenses, instead of the other way around.
3. Set financial goals and milestones
If serious about saving money, to save money expert advice would be to set saving goals. Setting goals is usually a good idea; where your employees can feel that they have accomplished something post each milestone. The idea of a short term or midterm goal and working towards achieving these goals can be helpful in the long run.
A short-term goal can be a trip to a new place, down payment for car, accumulating emergency funds, etc. And midterm to loan term goals can be down payment for a house, children’s education, etc.
Expert Tip: Setting goals help in keeping a track of the accomplishments and also helps in planning strategies for achieving future goals.
Read more about goal-based savings and how can you achieve your life goals?
4. Setting up of priorities
A penny saved is a penny earned. This is one of the more famous save money quotes. If your employees have budgeted their monthly expenditure, it is important to prioritize their savings. Some goals might need a higher allocation of funds, while others might not. Depending on the priority of the same, they can assign a specific amount or percentage every month.
Expert Tip: Prioritizing expenses and spending accordingly is a basic step towards saving money.
5. Shop around for Insurance
When your employees are looking for some save money plans, they must shop around or compare insurance policies on insurance aggregator’s before buying them. They should do a thorough research before purchasing an insurance policy. This will help them to save on premiums considerably without missing out on any benefits offered by the insurance plan.
Expert Tip: Insurance policies should be bought online as online purchase is convenient and even less expensive due to no commissions and brokerage.
Koppr helps you get the right corporate insurance for your business.
6. Utilize tools
There are a lot of financial instruments available which can help people in meeting their goals and in saving money as well. However, you might advise your employees to put in some effort and find out which instrument works out the best for them. There are a lot of online tools and mobile apps available that can help them to do the same.
A few of the instruments will help them in their money grow without any risks, while others will help it grow at a faster rate. You can also suggest them to opt for tax-saving schemes.
Expert Tip: Financial instruments can enhance the initiatives for saving money and should be used more promptly by individuals.
7. Automated systems
The presence of several automated systems means that there is no longer a need to worry about each and everything. Automated deductions from your bank account towards saving schemes can be set up and this can help in saving money without forgetting about it. As soon as the salary is credited, the automated system would deduct the amount.
Expert Tip: By the automated system, saving money is guaranteed in every month without a fail.
8. Review financial goals
While it is important to set financial goals to help people save money, reviewing them regularly is equally important. Reviewing goals and contributions regularly will help your employees to be on top of it. If there are circumstances in which the expenditure appears to be more rather than savings then the financial goals can be modified and initiatives can be taken for increasing savings.
Expert Tip: Review of financial goals help in analyzing if any changes need to be implemented in the save money ideas or strategies.
Share this beginners guide to financial planning with your employees.
Other personal saving strategies that your employees can adopt include:
9. Create a shopping list before shopping and stick to it
You can advise your employees to create a shopping list before they head out for shopping. This will help them in avoiding impulsive purchases.
Expert Tip: Your employees can take advantage of cashback reward cards which helps in providing bonus cash at the grocery stores.
10. Avoid overspending for kid’s entertainment
Spending of quality time with kids is much more important and beneficial than overspending on their entertainment. It is quite obvious that we all work and earn for our kids and their comfort, but time spent with kids would be worthier than spending money unnecessarily. You can give ideas to your employees for kid’s entertainment by some creative methods which will make the kids innovative and also entertain them. This will help in avoiding unnecessary expenditure and also strengthen their family bond.
Expert Tip: You can advise your employees for making their kids play outdoor games like cricket, football, hide and seek, etc. They can also take them for walks in the evening or encourage them to garden.
11. Save electricity
Saving electricity is one of the major responsibilities of every citizen. Unnecessary use of electricity and electrical appliances should be avoided. The electrical appliances like fans and lights should be switched off whenever not in use.
Moreover, you can give save money ideas to your employees by suggesting them to regularly clean up the electrical appliances. This will help in the efficient functioning of the appliances and save the expenditure on electricity bills as well.
Expert Tip: Installation of LEDs and CFLs wherever possible is a good step for saving electricity.
12. Restriction on online shopping
This is a very common habit with the millennial. Some of them do online shopping for fun and some do it as a stress buster. You can advise your employees to restrict the habit of online shopping.
Even though online shopping has its own set of advantages like convenience, numerous choices, lucrative offers, etc. but the habit of online shopping can dent a big hole in their pocket and this would be harmful.
Expert Tip: Reading books, painting, listening to music, etc. can be practiced as stress buster rather than opting for online shopping.
13. Air filter of car
One of the better save money ideas is to keep the air filter of car clean. Doing so on a regular basis can help your employees in saving money. A clean air filter can improve the mileage of a car by as much as 7%. If they drive around a lot, it can result in considerable savings.
Expert Tip: Air filters are available at affordable prices and changing it regularly should be preferred rather than using a dirty one.
14. Regular maintenance of devices
Most of the mechanical and electrical devices require regular maintenance. Regular maintenance and cleaning of devices should be taken care of. Simple stuff such as clearing off the dust, providing ambient ventilation, cleaning of filters, etc. can be helpful.
Regular maintenance would ensure that the appliances do not breakdown, thereby helping in saving money.
Expert Tip: A maintenance run for all your devices at regular intervals should be included in your household budget.
15. Cancellation of memberships
We are already amidst the middle of subscription-based models for various products and services. If your employees have taken up certain memberships and are no longer using them, you can suggest them to cancel them. For example, some employees might be paying dues at a club which they might not be using even. These types of unnecessary memberships can be canceled and it can help in saving some money.
Expert Tip: Even if memberships are canceled, they can be renewed later as per convenience. So, cancellation of membership should not be considered as a serious problem.
16. Opt for carpooling to workplace
This is an excellent option for saving money and fuel which your employees can follow. If two or more of them are staying nearby, then they can opt for carpooling to the workplace. This is economical as it will save money, reduces the pollution level in the atmosphere and also reduce the traffic on roads.
Expert Tip: Carpool is an excellent option to save the vehicle from regular wear and tear as well.
17. Purchase term life insurance policy
A life insurance policy is a must to ensure the financial security of our near and dear ones when we are not present with them. It is always advisable to start a life insurance policy at a younger age as it would cost a low premium. If your employees are planning for the purchase of a life insurance policy and also save some money; then you can suggest them for buying a term life insurance policy. This will provide maximum coverage at a low premium and hence is an excellent save money plan.
Expert Tip: Term life insurance policy should be purchased online after comparison by insurance aggregator.
18. Purchase of efficient cars
Buying a feature-loaded car or a car with a bigger engine might incite the decision of an individual. However, opting for a reliable and efficient car can help your employees save money. A reliable car would bring down regular maintenance expenses and an efficient car would help them in keeping the running costs down.
Expert Tip: Good research should be done before the purchase.
19. Affordable Locality for Housing
The rent of a house is one of the larger expenses that one must be incurring. For saving money, moving to a more affordable locality can be a good option. The expenses are mostly affected by the part or locality of the city in which one resides.
Expert Tip: Cutting down expenses related to housing and its rent contributes a big amount towards savings.
20. Keep your tires inflated
A lot of car owners usually do not pay enough attention to the pressure of their car tires. Keeping the tires of cars inflated to the recommended levels can help in saving money. To find out the recommended tire pressure, you can suggest your employees for reference to the car manual or look for the information on the driver’s side door.
Expert Tip: The car manual can be read and the pressure of the tires should be maintained accordingly.
Creating and taking care of an own garden can help in relieving some stress while growing some organic food. A lot of resources are not needed to start gardening. While it might not meet all the vegetable requirements in the family, some common vegetables can be grown in a healthy way. This will act as a stress buster; can turn into a hobby and even lower grocery expenditure up to a certain extent.
Expert Tip: Kids in the house can also be encouraged to participate in gardening. This can be fun and a great learning experience for them as well.
22. Use of mobile applications
Given the ever-increasing internet penetration and growing smartphones, individuals can use both of them to save money. A save money app, as the name suggests can boost savings. There are a lot of such apps available.
While some provide information about the best deals available nearby, others help in providing tips to your employees about managing their money more efficiently. Installing one or more of these apps might consume some memory, but certainly will help your employees in saving money.
Expert Tip: Mobile based Applications are the best way to gather information on any happening related to any field.
23. Money box
You can suggest your employees about inculcating a good habit in their kids i.e. to give them a save money box. This will give them a sense of responsibility and build a habit of saving. A piggy bank acts as a perfect starting point for kids to start saving money.
Expert Tip: Money bank helps in inculcating the habit of saving in kid’s right from their childhood.
The above are some of the save money ideas that individuals can start implementing in their daily lives. As said earlier, all suggestions and save money tips given by you might not be suitable for all of your employees. They will have to pick and choose the ones that best suit their style of saving and the nature of saving. These are certainly not the only saving techniques or ideas that can be implemented. Even further research can help in providing many more save money ideas.
However, you can assure your employees not to worry as they have already taken their first step. The fact that they have given this matter a thought shows their seriousness towards saving money. For the next steps, they can assess the aforementioned tips to save money and pick the ones that they feel would work out for them. You should try and encourage them with this initiative by putting forward better ideas. With smaller and valuable steps taken and the review of goals at regular intervals, your employees can end up saving more money than ever.
Apart from the above ways to save money, we have also listed down 12 ways on how you can save money on tax