We know, ‘It is easy to spend but very hard
to earn’. In most of the cases you may even say that ‘It is easy to earn but
very difficult to save’.
Friends, it is really difficult to save but
not impossible. In this blog I am going to share with you few of the small but
surprising tips, which help you to guide how to save money without sacrificing
your common desires.
1. Save Loose Change: Save your loose change.
Putting 5-20 rupees into your piggy-bag every day over the course of 10 years
will allow you to save a lot of money. Advice: Try to bring habit of savings in your
kids.
2. Keep Track of Your Spending: At least once a month
check what you've purchased and think twice whether any of those purchases can
be avoided in the next month, help you avoid buying things you don’t need, and
what’s left over can go into saving. Advice: Prepare your own budget.
3. Stick to Shopping’s List: People who do shopping, especially
food shopping with a list, spend much less money than those who decide what to
buy when they get to the food store. The annual savings could easily be thousands
of rupees.
4. Avoid Sudden Purchase of Expensive Items: If
possible create a fund for each expensive item you want to purchase. Suppose
you want to purchase an item worth of Rs 24,000 then keep aside Rs 1,000 each
month in your bank in the form of RD (Recurring Deposits). After one year you
will get Rs 24,000 plus amount (including interest) from which you may go for
that purchase. Advice: Try to postpone purchase of expensive items if it’s not
urgent.
5. Consider Generic Drugs: Generic drugs cost several
thousand rupees less to purchase annually than branded one and also find the
lowest-cost place to purchase prescription drugs. Advice:
Ask your physician to consider prescribing generic drugs.
6. Bring Lunch-Box to Work: Bringing lunch from home
is always cheaper compared with buying lunch at work or outside the workplace.
By this, you could able to save thousands of rupees which allow you to purchase
school dresses to your kids in the next year.
7. Prepare Fast Foods at Home: You will be
surprised to know the amount you can save just by preparing snacks or other
fast foods at home instead of buying from outside. It will save more than Rs
8,000 annually.
8. Substitute Homemade Cool Drinks and Juices with Market
Beverages: Homemade cool drinks
like rasna, glucose water, lemon juice, lassi, etc. are cheaper as well as
healthier than beverages available in the market.
9. Aim Short-Term Savings Goals: People save more
successfully when they keep the short-term goal in sight. It helps to save more
money without any stress. Advice: List out your short-term goals
logically.
10. Use Online Banking Facilities: Each visit to your
bank cost around Rs 30-50 and it is also time consuming. Advice: Use online banking facility at home for those
transactions for which physical presence of the account holder at bank is not
mandatory.
11. Smart Use of Debit and Credit Cards: To
minimize interest charges, try to limit credit card purchases mainly for those
you can pay off in full at the end of the month. Relying on an overdraft
feature to spend money is not advisable to debit card user. Advice: Check
your card transactions at least once in a fortnight.
12. Don’t Use ATMs More Than Five or Ten Times: In
India, using ATM of your bank for more than five or ten transactions (depend on
banks including request for balance statement) cost around Rs 10-20 for each
transaction above fifth or tenth one. By avoiding it, you can save more than Rs
1,000 annually. Advice: Use two different banks’
ATMs. It increases transaction’s limit up to 10-20 per month without any
penalty.
13. Avoid Fees and Fines on Banking Transactions: Avoid bouncing cheques or O.D. fees each month. Reduce credit
card debt by Rs 50,000 will probably save you Rs 7,500-10,000 a year. Make your
monthly credit card payment on time. You can save hundreds of rupees by not
being charged a late fee each month on one card will allow you to purchase nice
school bags and other writing materials to your kids for the next session of
the school.
14. Assess Your Need for Life Insurance Coverage:
Before you go for life insurance coverage, asses your need for it. Reduction in
unnecessary payment of annual premium than actually required will allow you to save
most money. If your spouse works, you may not need as much life insurance
protection. Advice: Pay the premium on time otherwise it will cost in
long-run.
15. Live Near to Your Workplace: Living relatively near your workplace not only saves your time but can
also lower your transportation costs by Rs 8,000-15,000 annually.
16. Drive Vehicles in Prescribed Speed Limit:
Driving your vehicle within a prescribed speed limit of 45-55 km per hour
allows you to save around Rs 5,000-8,000 annually on fuel and maintenance costs.
Advice: Avoid fast start-ups and stops which over
the time will allow you to save lots of money.
17. Use Public Transport: Using public transit
instead of cabs can save you Rs 150-300 per trip or more. Travelling by train
instead of private buses also saves a lot of money. Public transport is also better from safety point of
view. Advice: Take fewer cab rides.
18. Use Two Wheelers Instead of Four: If you need to go somewhere urgently, use two
wheelers instead of four wheelers, allow you to save half of money you spent on
fuel of four wheelers which could be around Rs 10,000-15,000 annually. Advice: Use bicycle
wherever you think it fit.
19. Choose Home Appliances Wisely: Before going for home appliances does
research of those products in your surroundings and on internet allow you to
earn good discounts. In case of electronic items, considering items having
higher star ratings allows you to save a lot of money in long-run in the form
of low electricity bill. Advice: Always go for branded one.
20. Use Solar Power Based Products: A solar power based product costs higher than
the product using electricity. A solar heater costs around three times higher
than an ordinary electric heater but it minimizes the electricity charges. Keep
in mind that a payback period of less than five years or even seven years,
usually will save you lots of money in the long-term.
21. All Seasons-Proof Home: In summer, use window
coverings to block sunlight, keep
your house cool. In winter, open the coverings to let sunshine warm your
house. By this you could easily save more than Rs 5,000 annually while being
more comfortable. In rainy season, store rain water in the rain harvesting tank
in order to use it in dry season to watering your garden and so on.
22. Asses Clothing: There are huge price gaps between
clothing on sale at discount and that sold regularly at stores. It is better to
wash and iron clothes yourself. It will save hundreds of rupees each month. Advice: Assess clothing in terms of quality as well as
price.
23. Assess Communication Costs: Now-a-days cell
phones are very common which have dramatically increased communications
expenditure in many households. So make sure your calling plan matches the
pattern of calls you typically make. It is better to communicate by e-mail
rather than by phone. A thoughtful letter is far more highly valued than phone
conversations. Advice: Be aware of your cell
phone costs and how to reduce them.
24. Think About Inexpensive Entertainment: Research
free or inexpensive entertainment in your community. Use local newspapers and
websites to learn about free or low-cost parks, museums, film showings, sports
events, and other places which you and your family would enjoy.
25. Borrow Books &
Other Reading Materials: Borrowing books and reading magazines at your
local library, rather than purchasing, can save you thousands of rupees a year.
Advice: Visit frequently your nearby library with your kids.
26. Sell Used Books to Second-Hand Book Purchaser: If
no one in your surrounding interested to borrow your books then sells it to the
second hand book purchaser instead of selling it to kabadiwalas, can add to
your saving few hundreds of rupees per year.
27. Choose Gifts Well-in-Advance and Wisely: Plan
gift-giving well in advance. In families, discuss limits on spending for gifts.
These limits not only tend to reduce expenditures; they also be greatly
appreciated by the least affluent (rich) family members. A hand-made greeting
card or a gift might be highly heart touching and may be huge saving here.
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