Save money-limit expenditure on ten items


Are you worried about your extravagant habits? Want to improve your savings level, but don't know how to do it? Read this article and check the items which create a very big hole in your pocket. Overcome your habit and save a substantial amount.

Everybody must have heard this popular adage: 'One rupee saved is one rupee earned'. Yet we all spend money unnecessarily. Actually this is a matter of habit. We may not realize this but we drain our hard-earned money unnecessarily. In this article, we will discuss ten items on which we spend money unnecessarily. The savings generated by limiting expenditure on these items would be fairly good, and if the saved amount is invested every month, the returns generated in ten years would be awesome! Let us discuss these items where we can significantly limit our expenditure.

Watching movies in malls

A movie ticket in malls cost around Rs. 200/-. The associated expenditure like buying popcorns, cold drinks, fast food and transport would be another Rs. 250/- (minimum). If we watch movies once in a week, the total monthly expenditure comes out to be Rs. 1800/-. We are not even considering our partners while discussing this. So, if we limit our movie-watching habit to once in a month, we can straight-away save Rs. 1350/- per month. Instead, we may subscribe to Tata Sky, Dish TV, etc. at the cost of Rs. 500/- per month and watch movies sitting in our drawing rooms. Even if we order foods from outside, the saving would be substantial. For a family, it would be much more. So, why don't we give it a try?

Enjoying in Coffee shops

The younger generation has developed a habit to gossip with friends and colleagues in coffee shops. The frothing coffee and accompanying tit-bits cost at least Rs. 100/- for a person. So, if we limit our visit to the coffee shop during lunch hour or after office hours and instead purchase a 25 gm. jar of Nescaffe (sufficient for eight cups of coffee) at our residence, we can easily save more than Rs. 1500/- per month! Give this alternative a chance!

Buying extra groceries

Just wait for 10 minutes! Check the stock and prepare a list before going to the shop. In the shop overcome the temptation of 'buy three, get one free' type lollipops. At the same time, check the habit of munching chocolates or chewing mouth-fresheners standing in queues. You can easily save minimum Rs. 1500/- every month! Astonished! It is a fact.

Control the habit of dining-out regularly

Needless to state that the extravagant habit of dining-out frequently creates a major hole in our pocket. Why can't we limit this habit to once in a month and save more than Rs. 2000/-? For the family, the saving would be much more! If you are too addicted to outside food, why don't you use your cell-phone and order food from restaurant once a week? Do it!

Stop spending money on new bikes and cars

Young men in the higher income bracket have adopted this unhealthy habit of western countries. They change bikes in every six months. Some change cars once in a year, sometime taking substantial loan at very high rate of interest. Come out of this extravagant and useless habit, come out of the impending debt trap, save money and enjoy a comfortable life.

Don't pay unnecessary bank-fees

Nowadays banks, especially private sector banks have started charging fees for even basic services. Opening a locker, keeping a locker, online transfer of funds, use of ATMs for more than five times a month, SMS charges, etc. are some of them. A prudent and rational person can easily minimize such expenditure. For example, a person may calculate beforehand and can draw money from ATM only once a week. Small planned steps can cause a fairly significant saving every month in this regard.

Stop spending money on branded items

Working young women spend unbelievable amount in purchasing branded handbags. Similarly young men spend 50% more on branded jeans. Try products without brand names. These are almost equally good with at least 30% less cost. Don't get overpowered by your own ego. Save money instead!

Don't spend money on add-on products

Shop-keepers very kindly offer extended warranty plan for cell-phones at an additional cost of say Rs. 2000/-. If we purchase LCD TV, the friendly shop-owner would gently insist us to take a costly insurance cover. Resist temptation, think rationally whether such add-on products are suitable for you or not, and save money.

Resist temptation of video game parlours

This is applicable for children and occasionally for adults also. Inside shopping malls, parlours charge nominally for each round of video games, which become substantial because children go on playing. Instead wasting money in video parlours, download games apps if necessary. Check this useless habit of your children and save money in the process.

Stop useless subscriptions

Think rationally and check whether monthly or annual subscription for using gym facilities is necessary, or not. Same is applicable for subscribing auto-magazines or numerous film-magazines. Believe me, you can save more than Rs. 1000/ every month on this count!

By a conservative estimate, a person can easily save Rs. 3000/- to Rs. 5000/- per month by controlling his/her extravagant habits. Now invest this amount every month in a liquid mutual fund or in a bank recurring deposit for ten years. See the difference in your savings! Don't forget to thank this author after ten years!


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Comments

Author: Kailash Kumar22 Mar 2016 Member Level: Platinum   Points : 3

The people who indulge in activities mentioned by the author in his article are those who have disposal income to spend. For an average common man of India, such activities are luxury. I would like to share here few tips as follows-
1. Deduct 10% to 15% before hand from total monthly income and then make budget reckoning remaining amount.
2. Activities like drinking and smoking have no justification whatsoever. Such habits not only erode the savings but also increase expenditure in the form of medical treatment etc. in the later stages.
3. Luxurious activities have no upper limit of expenditure. One should indulge only up to a prescribed percentage of his/her income though it is advisable to divert such expenditure totally to the savings head till a sufficiently large fund in created.

Author: Venkiteswaran06 Apr 2016 Member Level: Diamond   Points : 3

Money saved is money earned. When earning is limited, the only alternative to make the earning last longer is to limit expenditure.

One has to make a clear cut differentiation between essentials and non-essential needs and avoidable expenses and 'definitely to be avoided' expenses. Money should be spent in the order of priority of absolute essentials, normally needed non-essentials and savings. In fact for a prudent management of money, 'savings' also has to be made as an essential item. It is always better to earmark some amount for savings first and then spend.

Author: Juana19 Mar 2017 Member Level: Platinum   Points : 10

How practical are these ideas? Someone who wants to save money would in any case not be spending on the things listed in the article. It is only those who can afford to spend, who do throw their money on all these things.

Saving is a good habit, but what does one earn for? A few luxuries in life, if one can afford them, should be allowed, otherwise, it will be a life of just drudgery.

A practical way of saving is to keep aside (read invest) a certain percentage of your take home salary. If we keep aside 30% of this amount we have 70% in hand for our expenses. Remove from this sum the amount that is to be paid for every month – fuel or transportation cost, electricity bill, house rent or society maintenance and property tax, school fee, maid salary, dhobi etcetera. These are generally fixed amounts, give and take a few rupees. You’ll spend roughly 25% of the 70% on these.

From what is left keep aside money for groceries and toiletries, things that need to be stocked in your fridge etcetera.

You’ll still have some money left and that is yours to use, but spend this wisely as well. Keep aside a small percentage (preferably one-fourth) for a big buy, or a holiday or a special treat. Set aside another one-fourth for an emergency, such as a wedding in the family or a school trip where your child wants to attend or an illness. The rest is for you to splurge, go watch that movie or buy that handbag you fancied.

Managing finances requires discipline. It doesn’t mean depriving one of the things one likes or things that one wants to do.

Author: Partha Kansabanik20 Mar 2017 Member Level: Diamond   Points : 3

Ms. Juana: With due respect to you, I beg to differ. This article is written mainly for young people who have just started working. I have been closely observing such young men and women for some years. I am simply astonished by the way they waste money. They go to multiplexes twice or thrice every week and throw away money. They change two-wheeler every year and cars in every two years, and that too by taking loan! They spend money like water and become members of clubs and gyms, but don't find time to visit these places.
I have also seen that due to their lifestyle, many youngsters have fallen into debt trap after they start earning. They must know and understand the importance of financial discipline.



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