Ten Steps to Save Money Regularly

 

Hundreds of articles have been written about how to save money. Many would feel what difference yet another article on the subject would make. However, anyone with a discipline, will power or the genuine desire (to save money) can certainly benefit from such practices.

     Small changes can lead to significant savings. One can make adjustments to daily habits, reduce monthly bills, and utilize automated savings tools to accumulate wealth over time. 

      Following are some practical tips for saving money. Most of us are aware of these, but somehow are not able to follow these regularly. 

      1 Using Physical Cash

      Using physical cash (coins & currency notes), instead of e money (credit card, debit card, platforms like BHIM, Phonepay, etc) is one good way to ensure that you do not spend more. Most people find it difficult to part with physical cash but not so with electronic money. While e money has its own advantages, the ability to spend it away is possibly its largest disadvantage.

 

      2 Proper Shopping List

      When making day to day purchases for your household items prepare a proper shopping list. When one visits a store or opens a shopping app in a smart phone without a prepared list he / she always tends to add items which may or may not be required within the next shopping cycle. If you are using a credit card or a debit card, try to use one which gives you some kind of a cash back or loyalty points.

 

 

 

3 Reduce Restaurant Meals 

Dining out at a restaurant is almost always expensive as compared to cooking food at home. Limit restaurant visits to occasions such as birthdays, anniversaries, etc. Whenever eating out take advantage of credit cards that reward restaurant spending. Share starters. Skip drinks and desserts. By opting for an ice-cream at a standalone ice-cream parlor you get more variety at a lower cost. 

 

4 Timing of Purchasing Big Ticket Items

One can save big money by timing the purchases of appliances, furniture, cars, electronics, and several other big-ticket items. When shopping physically visit multiple shops & bargain hard. Salesmen have their sales target to be achieved and will be willing to offer discounts not listed in the price list. Most malls, stores & shops have their annual sale during festive periods, and many brands offer decent discount during such sales. Similarly popular online portals like Amazon and Flipkart have their “Big Indian Festival” or “Big Billion Day” where several items are available at a substantial discount.

 

      5 Do Not Save Billing Information on Online Shopping Portals

     If at all you do online shopping, make it harder to shop online by not saving billing information such as shipping address, credit card number, etc. This way it is less tempting to make impulse purchases.

 

     6 Cooling Off Period

     Give yourself a cooling-off period between when an item catches your eye and when you actually make the purchase. When shopping online if it is not an emergency item (several items are impulsive & not emergency) let the item lie in your shopping cart for 15-20 days. This way you have more time to think it over. You may end up not buying this as at a later time you will realize that it is not actually required.

 

     7 Review Energy Using Appliances

      Review your energy using appliances. Implementing both big and small changes in your energy usage, such as plugging insulation leaks and switching to more energy-efficient appliances, can result in substantial annual savings on your electric bill. Look out for the star rating on electrical appliances, more stars mean more efficient when compared to other models of the same size.

 

     8 Set Savings Goals

     Set specific and realistic savings goals. For instance, saving a certain amount regularly by way of SIP in a mutual fund scheme, designating the same as a retirement account. Or paying off credit card debt faster. Utilize a savings goal calculator to determine the required monthly or yearly savings needed to achieve your goal.

 

  

     9 Pay Off High Interest Debts 

          Paying off high-interest debt can be a significant burden on your overall budget. You can reduce the total interest paid and free yourself sooner from that burden by paying off high-interest debt quickly through extra payments using the snowball or avalanche methods. Then, start saving that money instead.

 

      10 Always Work With a Budget

      Make a monthly, quarterly and annual budget listing potential inflows & outflows in tabular form. Compare actuals with budgets & identify variations. This will help you to prioritize your spending, manage your money effectively and potentially retain more of it. Depending on the situation rework the budget.

 

 

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