Every rupee saved and invested judiciously goes a long way in building wealth over the long term.

A penny saved is a penny earned, goes an age old expression that will hold relevance at all times. In order to grow wealth, you need to invest a portion of your income in high yielding investments. Over time, that is your savings for meeting long term goals. Besides investing, you should be aware of the steps to save money in your day-to-day living and even while spending money. Every rupee saved and invested judiciously goes a long way in building wealth over the long term.

As a beginner and even for others, there are three areas that you need to have a firm grip upon – spending, borrowing and investing. Afterall, you will spend on essentials and utilities, take loans at some point of time and invest to meet life goals.

Here are some ways to save and spend smartly so as to make every rupee work to your advantage.

Start early: You need to start saving as early as possible in life. Even saving a smaller amount will not only build up a habit but also give you a headstart. The power of compounding will work in your favour over the long term and you could witness an exponential growth in your savings. Do not procrastinate and start saving early as you will need a small amount compared to a larger amount if you start late.

Save, then spend: The general rule of savings is to spend what remains after you have saved out of your income.If you are spending first and then saving what is left, you need to reverse the process. So, income minus savings should be the spending.

Check bank accounts: Most of us have more than one bank account. Keep an eye on the bank statements to see if there are any charges deducted on account of different reasons. See, if they can be reversed by the bank and take action to not let banks repeat them. Also, check for minimum balance charges and take action accordingly.

Cover risks: if you have financial dependents, buy adequate life insurance preferably through a term insurance plan. Also, get health coverage for all family members. By paying a small cost as premium towards these risk covers, you ensure that your savings are not hit when emergency strikes and life goals are not derailed for the family.

Credit card dues: If you are in a habit of rolling over your credit card dues each month, you are damaging your finances badly. The annual interest rate is close to 40 per cent or even more in some cards. Further, if you do not repay in full, there is no interest-free period on your subsequent purchases. Make sure you pay the credit card outstanding amount in full by the due date in order to avoid late fees and other charges.

Home loan: If you already have a home loan, keep prepaying it and do not wait to end it as per original tenure. The earlier you finish the loan, the more savings will be in interest cost. Also, keep a lower tenure if the EMI burden is comfortably met after household expenses and long term savings.

Go digital: As far as possible, make use of digital platforms to go shopping. Be it your home needs or utility payments or even for buying life insurance. The premium of term insurance plans is generally lower by almost 25 per cent than the offline version of the same plan.

Once you build up a habit of saving on small transactions and on daily counts, the end-result will be visible over time and you will find newer ways to keep saving more even while spending. Both things can go hand-in-hand for saving a sizable amount over the long term.