The cost of living is increasing significantly. As a result, managing family expenses relying only on the monthly income is becoming more difficult nowadays.

How can you save money in this scenario?

If you follow a few tactics, you will be able to set aside a small amount each month. And this small amount will give you a handsome amount after a period of time.

You may follow the following five tips to save money each month.

FIX YOUR GOAL

Set your future goal. You may divide your goals into short-term and long-term.

Short-term goals shall be attained within a year and these may include buying a television, freeze or any household items. Long-term goals may take five years to achieve and include savings for the booking money for flats or plots or higher education for children.

When you are done about your goal then you will get the desired amount. Now, find out the monthly saving amount.

Don't worry if the savings amount is small at the beginning. Continue it and try to increase it whenever possible.

And of course, invest your savings in the tools from where you could earn high returns to reach your goal quickly.

PAY OFF YOUR DEBT

Do you have any high-interest loans? If yes, then pay off your debt first.

Suppose, you are paying 12 per cent interest against your loan but you're getting 7 per cent interest on your savings. This means you are paying an extra 5 percentage points. So, it will be wise to pay the loan first and then start saving.

KEEP LOOSE CHANGE ASIDE

Set aside the loose change each day after returning home from the office. If it is not possible, try to do it on a weekly basis after returning from kitchen markets.

Suppose, you keep less than Tk 100 aside after returning from the shopping. By doing it, you may start a deposit scheme at Tk 500 and this will help you get a big amount after five or 10 years.

MAKE A LIST OF MONTHLY EXPENSES

Maintain a monthly expenses list and continue it for the next few months. Now identify the expenses that are unnecessary. And also identify the expenditures that could be minimised or excluded.

If you identify that eating out costs more, then buy frozen foods or prepare food at home. This will help reduce your monthly expenses.

TRY TO EARN EXTRA MONEY

Do extra jobs to earn more. If you are good at mathematics or English, you may earn extra as a private tutor after your office time. Or you may earn by doing freelancing or starting blogging on weekends.

Saving a little is better than not saving at all. So, try to save money on a regular basis to reach your goal.

The writer is the author of Smart Money Hacks