How much we say that money is not important to us, at the end of the day it does play a huge role in our lives. Everything we do somehow or the other boils down to the money we have. Earning an income or looking at ways to increase it is one way to increase the bank balance. However, the second and may be the easier way is to reduce expenses. Why I say the second option is easier because it is in our control. Let us talk about some simple changes that you can make in your daily lives, which will help you save money.
Carpooling to work is an effective solution to several problems at the same time. For starters, you can save fuel, do less damage to the environment and at the same time socialize with people as well. See if you can carpool with friends or colleagues.
We tend to get into a habit of not switching off appliances when not in use. It is essential to do the same. When your kids see you doing it, they would learn the same and continue with the habit. Saving electricity is a classic example of a rupee saved is a rupee earned. Look at appliances such as TV, microwave oven, laptop, etc. when not in use, do not forget to switch them off. Careful usage of electricity can bring down the bill by a considerable margin. Start with one practice and see the difference yourself.
If you go to work and there is a cafeteria, the chances are high that you will end up eating there on a regular basis. Try to get into the habit of cooking your food and carrying it to the office. This is a win-win situation since you eat healthy and save money in the same time. Food in most offices are expensive. Thus, carrying your own food can lead to considerable savings.
Whether it is shopping or eating outside, these are the two most impulsive decisions and at times unnecessary. If you see a Sale sign, do not jump on to it and start buying things, unless it is urgent. And for restaurant food, try to minimize the same. Eating out once in a month is fine but not once a week. This is something I really need to learn. Sigh!!
You can inculcate a good habit in kids and other members of the family by merely opening a savings account for all. This is a simple yet effective way to teach them how to save money. If you are teaching your kids something, you can reward them on its completion and ask them to put it into the savings account. This would help them learn the habit of saving. And make it a point to put aside some money on a monthly basis as savings. Only during emergency situations can you skip doing the same.
Another smart way to invest your money is by buying gold. Instead of giving expensive and at times irrelevant gifts, get into a habit of gifting gold to your family members. Or invest that amount in a gold scheme. There are several good gold schemes available for you to choose from. An amount as small as INR 5000 per month translates into INR 60,000 which you can use to buy gold.
This is an age-old tip or habit that most people recommend. It might sound really difficult to do, but it will do a world of good in the long run. Try to clean up your credit card, personal loan or any other kind of short-term loan. These seemingly innocent loans can eat a considerable amount into your savings.
In most households, a lot of coins and notes of small denominations keep lying around. Dedicate a small jar in your house and ask your kids and other members to fill it up with change every time they see one lying around. At the end of a month you can ask your kids to deposit the same to their savings account or do something useful with that money.
If you really and genuinely want to save money, start with tracking your expenses. You can either go old school and track expenses on a notepad or use one of the several expense tracker apps available. This will help you understand where your money is actually going and then you can device a plan to cut down. Tracking your expenses is a crucial part of a savings plan.
It can get quite difficult to stay motivated to save money. You might have to let go of several things that you are fond of. However, there is a reason why you decided to save in the first place. If you want to buy something for house or plan for a trip, keep a picture of the same in front of your eyes. This will keep you motivated and focused on the savings.