Monday, May 13, 2013

10 easy ways to save money :

Want to know some easy ways to save money?
Taking small, incremental steps to begin with will help you set up a good long term habit. 
1. Saving: Make a small beginning

You need not save a big amount all at once at all. Save small amounts many times and it adds up to a big amount. The power of this is what you see in small savings schemes. For example, in a Public Provident Fund (PPF), you can deposit even as small an amount as Rs. 500. Same is the case with savings facilities like systematic investment plans, which helps you put in your money in small amounts over one or two years. The secret is to save this amount and not wait for big amounts to come through for you to start saving. 

2. Prepare a family budget
A budget is a must to plan incomes, savings, spending and investments. Once you have a budget, you tend to stay within the budget and you tend to save more than you ever expected. Budgeting brings in discipline and it avoids any surprises that could come up on any front. Budgeting is required for every month as much as it is for a whole year. The essence of good financial management starts with good household management. The term economics itself comes from the Greek words, “oekos” and “nomos”, which means household management.

3. Spend a little less 
The obvious way to save more is to spend less. Some restraints on spending could put more money into your wallet. This would involve cutting out things which may not be absolutely essential. Going to a movie theatre would involve spending more money, and you could as well get a DVD and watch it at home. There will be quite a bit of saving  through a small act of spending less. That does not mean that you stop going to see movies altogether. But, if you go four times a month, cut it down to three or even two visits and see the difference. 

4. Consolidate and clear debt
It is likely that one may be having multiple debts from multiple institutions, and in such a context, it is worthwhile consolidating it and gradually clearing it, as you earn money. If it is with a single lender, then you can have arrangements by which any balances in excess of a certain amount are paid into the loan account, so that the incidence of interest is reduced to that extent of repayment. There is substantial savings that could come from such an arrangement, where the loans are of long duration and at high rates of interest.

5. Don’t be a shopaholic
Shopping often leads to excessive and impulsive buying. The very sight of things would stir a craving in us to buy it, though many of these things may not be of immediate utility. It is better to go to the mall with a list of things that you want to purchase. And if you stick to the list, then you have successfully defeated the irrational buying instinct. It is a common fact of experience that many-a-time, a lot of stuff is wasted, including food items. It is also worthwhile to look at special offers and discounts, which come from reputed and reliable vendors and companies, so that the impact on your wallet is limited to a certain extent.

6. Eliminate delayed payments
Delayed payments on credit cards and telephone bills always have very high late payment charges attached to it. We are not aware of it most of the time because we may be busy with our daily routine while money may be lying idle in the savings account. There are people who plan things out and make their bill payments well ahead of time and do not spend more than what they should actually be. It is important to take a leaf from their books and see that no instances of late payment fees hits your bill payments, as you are losing hard-earned money for nothing.  

7.  Buy in quantity
When you buy in bulk, you get a discount on many of the consumption items, especially things of daily use. Such discounts are substantial during festive seasons and end-of-season sales. So, if there is any item you need to use often, and it is an article of everyday use, (and you need it in large quantities), it pays to go and get it in bulk, as the discounts would be anything from 10% to 30% on such purchases. This discount is the money that you would have otherwise spent. Now, you have managed to pick up a large quantity of stuff that you wanted and saved money too. 

8.  Carry some drinking water
It is a good thing to drink plenty of water. But it may not be a good thing if you pay for it every time you consume this free resource of nature. In special circumstances, it is alright to buy water. But there are numerous instances during the course of the day when carrying water could help. You could keep a bottle of water in your car. On all short journeys, you could carry a half a litre bottle very conveniently. There is also a habit of stacking up more than one bottle when you are offered bottled water free. This may not be required, as the second bottle is meant for someone else. 

9. Buying books
You may buy books for one-time use, like reading it to prepare for an exam or a project, and thereafter, you may not use it very often. Then, there is another set of books, which you may keep and refer to occasionally as part of your library. In the former case, it is better to go for used books in good condition, and such books are available at throwaway prices. You may check any of the popular seconds websites to acquire such books online.

10. Keep an eye on balances, credits and maturities
It is important that we keep an eye on our account balances. This will help us avoid situations of un-invested surplus remaining idle, or even the accounts being overdrawn. Such occasions would cost us in terms of lost earnings. These costs ultimately eat into the returns, and you need to be extra careful when you run trading positions in the market.
Source :myuniverse

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