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.
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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.
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
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
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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