If you are one of those who always wanted to save money but somehow ended up spending it then please continue reading.
1. Don't buy what you can't afford : We buy things which we like. But most often we don't realize that we might be spending much more than what we can afford. A second thought and calculating monthly budget must be done before buying expensive things.
2. Don't go for everything that's on sale : Sale items may not include everything that you actually need. But just because it's cheeper you go for it. One good example which I noticed in a showroom is that I saw lot of crowd had gathered over a counter. At the counter 20 rupees could be saved upon purchase of two pair of slippers. What people don't ask themselves is why it is on sale and do they actually need the second one. They assume that these slippers will be needed sometime in the future and hence it's bought. Now in order to save 20 rupees they spend much more than what they intended to. You might be thinking that even if they've spend extra in this month its not a problem because one day they will be needing the second pair of slippers and in that month they will save. But remember it becomes a habit, this month it is slipper next month it may be a shirt and so on and so forth. Also note that people may not only go for slippers but they may do the same for other items on sale.
3. Don't buy everything on credit : If you buy these slippers with a credit card then again you are not saving. You are just buying an unwanted thing and if you exceed your budget in that month then you will end up paying interest on it. Don't you think it sounds foolish.
4. Don't pay only the minimum amount on you credit card balance : Due to it you have to pay higher interest every month plus your savings will be lesser as you will stay in debt for a longer time.
5. Don't gamble with your hard earned money : You may argue that there are many people who have earned huge amounts by gambling in casinos,horse racing etc. The answer to it is that these so called people are either very very lucky or they have a very good understanding of the game that they are playing. 99.9 % of these rich guys know a lot more about casino's and horse racing than other gamblers.
6. Don't be ready to lend money to your friends/relatives : Lending money to your friend/relative because he is in great need can sometimes be a bad option. One of my friend once said ' I never show all my cards '. This means that although he may be asking money from you but he certainly has many other options of getting it. When you lend money the borrower acts like a holy cow but when you ask for it he becomes a wild tiger. Trust me in most cases you will not get a single penny back or you may get it after a lot of time and that too in parts. More than 90% of people all over world have lost money lending to a relative or a friend. Make sure that you are lending your money to someone who has good bank balance, asset to his name. So that later on your relative/friend cannot say that he has no way to return it. Always lend money after consulting your elders or well wishers. Listen to what they think about the borrower's intentions. If possible let the borrower know that some people have a knowledge that you have lend money to him. The best way to say a NO to your friend/relative is that you have invested all your savings in stock market, mutual fund or a business and presently you are at a huge loss.
7. Don't spend your money as soon as you get it : Many people develop a strong urge to spend money after receiving their salary. They rush to buy a latest gadget or an expensive watch or a dress etc. This happens especially to those people who are either young or who don't have someone depending upon them. Best way to control this habit is to invest some money every month in a lock-in sort of investment like FD, ULIP's etc. for long term. The lock-in facility will not allow you to use the invested amount. These investments will grow over a period of time and will also supress your desire to spend money as soon as you get it.
8. Bargain before purchasing expensive things : It is surprising to know that almost everyone bargains with an auto rickshaw driver, vegetable vendor or a local market shopkeeper for only 5, 10 or 20 rupees. But we find so many people not bargaining about their salary, when buying a house, car or a furniture. These are the places where bargaining will save more than just 20-50 rupees. Even if they bargain it is found that most often people easily settle for something less. The reason is that bargaing too much in areas like car showroom or real estate agent's offices where other well off guys are present is considered a bit insulting. The person selling the item knows very well about this ( after all he deals with so many persons everyday). So he tries a trick and tells you that he has not met anybody who has asked for such a low price or he may laugh after you offer your price. Don't easily give up, be firm, fight for every hard earned rupee and always be ready to walk out from the place without any argument. Argument makes things personal but your politeness may make the dealer call you again. Also it should be noted that these well off customers who are around you in a car showroom or real estate agent's office may be in a similar situation like you and even if they are not then 99 % of them will forget your face after just 1 or 2 days.
9. Save on your electricity bill : Switch off the lights and fans which are not required, use AC in sleep mode, use microwave only when it is required, use CFL instead of bulbs, use gas geysers instead of electric geysers. During winter season only one gas geyser is enough for a family of four. This way you will not only save money but also contribute towards welfare of our mother earth.
10. Save on your telephone/mobile bill : Have a good knowledge about the various plans on offer. Don't develop a habit of talking for hours. Call only when you have to and talk only till it is required. If you have a habit of talking too much on the mobile then it is always better to top-up with small amounts like Rs 50. This will make you think twice or thrice before calling anyone. Also you will have a constant knowledge about the balance and will not talk for hours as there is always a need to keep some amount for an urgent call.
11. Spend less on a dinner/movie : Movie for a couple generally costs around 500 rupees ( movie tickets + snacks + petrol ). Same amount is required for a dinner at a decent restaurant. If you save 1000 rupees every month by skipping a movie and a dinner you will save 12000 rupees in a year. These 12000 rupees can be used to meet other needs like buying a washing machine. If you invest 1000 rupees per month in a mutual fund through SIP for 20 years then you may get around than 10 lacs after 20 years. It sounds great to earn 10 lac rupees just by skipping a movie and an expensive dinner a month.
Read - How To Beat The Equity Related Threats
12. Don't use car where bike is sufficient : Don't use car where bike is sufficient and don't use bike where your legs are sufficient. This way you will save money on petrol, reduce road traffic and improve health.
13. Internet shopping : These days there are so many websites which offer branded products at discounted prices. Just think of a product and chances are that you will find it being sold on the net. We can really save lot of money if we do a bit of research before buying things. Just go to the nearby market / mall, find out the MRP of a product and search the same on the shopping websites. You will be surprised to see the discounts offered on some of the products. If you don't have a credit card then also you don't have to worry as most of these websites sell products on 'cash on delivery (COD)' basis.
14. Reduce ciggarette and liquor : Actually it should be avoided but if you cannot avoid then at least reduce. This way you will save money and improve health.
15. Use washing machine judiously : Using wasing machine for only few clothes means consuming more water, washing powder and electricity.
16. Go for large quantity : What is common between a large bottle of sauce, large packet of detergent powder, large bar of soap, large can of cooking oil etc ? The answer is that you save money when you buy these items in large quantity you save money. Just compare the ratio of price to quantity of these large items with the smaller ones you will understand what I mean. However, monthly budget must be considered before buying large quantities.
17. Chose a group tour : When choosing a holiday package a group tour allows you to visit more places for a lesser amount. However, the disadvantage is that it can become tiring due to over travelling.
1. Don't buy what you can't afford : We buy things which we like. But most often we don't realize that we might be spending much more than what we can afford. A second thought and calculating monthly budget must be done before buying expensive things.
2. Don't go for everything that's on sale : Sale items may not include everything that you actually need. But just because it's cheeper you go for it. One good example which I noticed in a showroom is that I saw lot of crowd had gathered over a counter. At the counter 20 rupees could be saved upon purchase of two pair of slippers. What people don't ask themselves is why it is on sale and do they actually need the second one. They assume that these slippers will be needed sometime in the future and hence it's bought. Now in order to save 20 rupees they spend much more than what they intended to. You might be thinking that even if they've spend extra in this month its not a problem because one day they will be needing the second pair of slippers and in that month they will save. But remember it becomes a habit, this month it is slipper next month it may be a shirt and so on and so forth. Also note that people may not only go for slippers but they may do the same for other items on sale.
3. Don't buy everything on credit : If you buy these slippers with a credit card then again you are not saving. You are just buying an unwanted thing and if you exceed your budget in that month then you will end up paying interest on it. Don't you think it sounds foolish.
4. Don't pay only the minimum amount on you credit card balance : Due to it you have to pay higher interest every month plus your savings will be lesser as you will stay in debt for a longer time.
5. Don't gamble with your hard earned money : You may argue that there are many people who have earned huge amounts by gambling in casinos,horse racing etc. The answer to it is that these so called people are either very very lucky or they have a very good understanding of the game that they are playing. 99.9 % of these rich guys know a lot more about casino's and horse racing than other gamblers.
6. Don't be ready to lend money to your friends/relatives : Lending money to your friend/relative because he is in great need can sometimes be a bad option. One of my friend once said ' I never show all my cards '. This means that although he may be asking money from you but he certainly has many other options of getting it. When you lend money the borrower acts like a holy cow but when you ask for it he becomes a wild tiger. Trust me in most cases you will not get a single penny back or you may get it after a lot of time and that too in parts. More than 90% of people all over world have lost money lending to a relative or a friend. Make sure that you are lending your money to someone who has good bank balance, asset to his name. So that later on your relative/friend cannot say that he has no way to return it. Always lend money after consulting your elders or well wishers. Listen to what they think about the borrower's intentions. If possible let the borrower know that some people have a knowledge that you have lend money to him. The best way to say a NO to your friend/relative is that you have invested all your savings in stock market, mutual fund or a business and presently you are at a huge loss.
7. Don't spend your money as soon as you get it : Many people develop a strong urge to spend money after receiving their salary. They rush to buy a latest gadget or an expensive watch or a dress etc. This happens especially to those people who are either young or who don't have someone depending upon them. Best way to control this habit is to invest some money every month in a lock-in sort of investment like FD, ULIP's etc. for long term. The lock-in facility will not allow you to use the invested amount. These investments will grow over a period of time and will also supress your desire to spend money as soon as you get it.
8. Bargain before purchasing expensive things : It is surprising to know that almost everyone bargains with an auto rickshaw driver, vegetable vendor or a local market shopkeeper for only 5, 10 or 20 rupees. But we find so many people not bargaining about their salary, when buying a house, car or a furniture. These are the places where bargaining will save more than just 20-50 rupees. Even if they bargain it is found that most often people easily settle for something less. The reason is that bargaing too much in areas like car showroom or real estate agent's offices where other well off guys are present is considered a bit insulting. The person selling the item knows very well about this ( after all he deals with so many persons everyday). So he tries a trick and tells you that he has not met anybody who has asked for such a low price or he may laugh after you offer your price. Don't easily give up, be firm, fight for every hard earned rupee and always be ready to walk out from the place without any argument. Argument makes things personal but your politeness may make the dealer call you again. Also it should be noted that these well off customers who are around you in a car showroom or real estate agent's office may be in a similar situation like you and even if they are not then 99 % of them will forget your face after just 1 or 2 days.
9. Save on your electricity bill : Switch off the lights and fans which are not required, use AC in sleep mode, use microwave only when it is required, use CFL instead of bulbs, use gas geysers instead of electric geysers. During winter season only one gas geyser is enough for a family of four. This way you will not only save money but also contribute towards welfare of our mother earth.
10. Save on your telephone/mobile bill : Have a good knowledge about the various plans on offer. Don't develop a habit of talking for hours. Call only when you have to and talk only till it is required. If you have a habit of talking too much on the mobile then it is always better to top-up with small amounts like Rs 50. This will make you think twice or thrice before calling anyone. Also you will have a constant knowledge about the balance and will not talk for hours as there is always a need to keep some amount for an urgent call.
11. Spend less on a dinner/movie : Movie for a couple generally costs around 500 rupees ( movie tickets + snacks + petrol ). Same amount is required for a dinner at a decent restaurant. If you save 1000 rupees every month by skipping a movie and a dinner you will save 12000 rupees in a year. These 12000 rupees can be used to meet other needs like buying a washing machine. If you invest 1000 rupees per month in a mutual fund through SIP for 20 years then you may get around than 10 lacs after 20 years. It sounds great to earn 10 lac rupees just by skipping a movie and an expensive dinner a month.
Read - How To Beat The Equity Related Threats
12. Don't use car where bike is sufficient : Don't use car where bike is sufficient and don't use bike where your legs are sufficient. This way you will save money on petrol, reduce road traffic and improve health.
13. Internet shopping : These days there are so many websites which offer branded products at discounted prices. Just think of a product and chances are that you will find it being sold on the net. We can really save lot of money if we do a bit of research before buying things. Just go to the nearby market / mall, find out the MRP of a product and search the same on the shopping websites. You will be surprised to see the discounts offered on some of the products. If you don't have a credit card then also you don't have to worry as most of these websites sell products on 'cash on delivery (COD)' basis.
14. Reduce ciggarette and liquor : Actually it should be avoided but if you cannot avoid then at least reduce. This way you will save money and improve health.
15. Use washing machine judiously : Using wasing machine for only few clothes means consuming more water, washing powder and electricity.
16. Go for large quantity : What is common between a large bottle of sauce, large packet of detergent powder, large bar of soap, large can of cooking oil etc ? The answer is that you save money when you buy these items in large quantity you save money. Just compare the ratio of price to quantity of these large items with the smaller ones you will understand what I mean. However, monthly budget must be considered before buying large quantities.
17. Chose a group tour : When choosing a holiday package a group tour allows you to visit more places for a lesser amount. However, the disadvantage is that it can become tiring due to over travelling.
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