It is always great pleasure to share our experience with others which would add more benefits to others. This article would focus on the small things in our life that makes big savings if we use it wisely. As I said, I have collated these information from my experiences and it would be more useful for others to plan their spending. If you analyze your spending habits, large chunk of money will go to the small size expenses without your knowledge. As rightly said “little drops of water make a mighty ocean“, this proverb is very much suitable for the financial life.
Understanding the money value in early stage of your life is very important, looking at the current inflation rates, proper planning is a must.If you are interested in receiving our future articles, please subscribe here, like our facebook page.
1. Fuel / Travel Expenses
One of the major spending in our life is for fuel and frequent travels. Petrol and Diesel prices are deregulated and now the prices are in no control for the common man’s affordability. However, another side what we have considered as luxury now becomes a necessity. If you look back beyond 10 years, owning house has the highest priority among all the expenses. Nowadays, owning car overtakes the priority of buying a house. There is no problem in buying a car, but you use it extensively then it will put big hole in your monthly budget. If you are a salaried person, then you can follow some of the tips to reduce your monthly expenses on fuel and travel expenses.
- Don’t drive your car every day to office. It is good idea to use your two wheeler for daily use, in our city’s traffic, driving car is hectic and more fuel consumption.
- You can try something different like, weekly once use common transport of bus for travelling to office. Hey, note that these tips may not applicable to everyone. It is only idea, who ever find suitable can implement this.
- Avoid frequent travels to home town if there is no important work planned. If you are booking bus tickets, use the sites like makemytrip.com to get the discount on bus fares. There are many other sites which offer discount on the tickets, if you are frequent traveller it will help in significant savings.
2. Discounts / Coupons
E-commerce is catching up in India like ever before. There are plenty of e-commerce websites offers online shopping which fabulous discounts because of the high competition. If you do frequent shopping, then you should also check different shops which offers discounts and coupons. Please note that, you should not buy unnecessary things only because they offer big discount. When you go for a shopping, self control is very important. Otherwise you will end up in huge bill amount. Follow some of the tips which may help you.
- When you go for a shopping, list down necessary items and try to shop them first.
- If you have kids, they would like to buy everything they see. You should have plan for convincing them. It is kids physiology that they ask for everything.
- If you buy born baby diapers, etc. I would suggest using firstcry.com. This website offers great discount for the baby products. I personally use this website for everything I need for my kids.
- If you buy books, etc. Try using any of the popular websites like flipkart.com, amazon.in, etc. for the great discounts. You have to keep watching these sites for the offers.
- If you are from Bangalore, DMart store near electronics city offers great discount on all the provision stores. Rates are much cheaper then any other stores like Reliance Fresh, Nilgris, etc.
- If you are tired for going out for groceries, let’s try bigbasket.com. The prices are affordable and you can also purchase organic products. The service is available only in the selected cities.
It is not only for reduce your expenses, for the environment it is always good to efficiently use the electricity. It is one of the important point where everyone ignores it. If you look at your house, there are many unwanted appliances or electric things keep running as unnoticed. You have to improve the habit of switching of while some of the appliances not in use. I am not an expert to advice what to switch off, So here I found a great link explains some of the key aspects of savings electricity in home. Another very important point here is, please educate your kids on importance of saving the electricity. If you teach them when they are young, they will never forget forever.
4. Medical Expenses
Medical treatments very expensive even for a small check up. The prices are too high in the cities. There is nothing from my side to say for avoiding the medical expenses, however I can suggest better way of managing the medical expenses which will help on savings.
- If you are staying with family, find a suitable doctor for your family. Do the regular check up which will help find any future problems in your health. Also he will know the medical history of your family, it avoids many unnecessary checkups which would cost more money.
- Buy a suitable health insurance policy for your family. It is very important to protect your family with the health insurance policy.
- If you are working in a company, it is most likely that your employer would have covered all the employees in their group policy. Add your family member details in your company database. Note that, company insurance premium would very cheap compared to the policy directly purchased form insurance company.
- Purchase heal policy at the early stage, premiums will be lower if you buy health insurance policy under the age 35.
- Manish (www.jagoinvestor.com) has done a great job on comparing the various health insurance policies.
5. Review Bank Charges / Statements
Banks are levying heavy charges on late payment, minimum average balance non-maintenance, debit card fees, ATM withdrawal charges, etc. Most of the users not knowing these charges because these all auto deducted from your account without any notifications. The following are few tips to avoid paying unwanted fees for your bank account.
- If you don’t use an account, please close it immediately. Banks may charge for non-maintenance of monthly average balance which ranges from Rs. 100 – Rs. 400.
- Online transactions too attract charges, please avoid unnecessary transactions.
- Review your bank statements monthly or quarterly once to see if there is any amount deducted from your account.
6. Credit Cards
Credit Cards are the one easy way to bring the unwanted spending habits. If you are spending today for tomorrow’s earning, that needs to be reviewed carefully. Using credit card is not bad, but how we are using it is very important.
- Don’t use more than one credit card, it will impact your credit score.
- Pay the credit card dues on time, otherwise interest charges on credit cards due is very expensive. Also late payment fee is more than Rs. 500. If you can not repay the entire due, pay the minimum payment to avoid penalty.
- Some credit card companies offer great discounts and money back schemes for using their cards, try utilizing those schemes to get the maximum savings.
- Don’t use credit cards for the huge debt like purchasing car, etc. Instead you can choose some other low cost loans.
- Zero interest EMI on credit cards come with processing charges, understand the charges and accept for the EMI in credit card payments.
7. Use Reward Points
Every companies offer reward points to attract loyal customers to come back for the shopping. It is not easy to accumulate the reward points unless you have the patience to see the results. But, don’t buy anything just for the reward points. For example, if you use ICICI savings bank account and credit card you will be credited with the monthly reward points for your transactions. These points are added to the PayBack balance. You can redeem the points with the merchants.
- Start using any reward points program. Good one is PayBack, it most popular in India and used by most of the leading companies like ICICI, Future Group, FlipKart, FirstCry, BookMyShow, etc.
- Don’t leave the points to expire. Redeem the points which is to expire instead of loosing it.
- Watch the brands for any great reward points offer to accumulate more points.
Yep, is this useful for you anyways?. If you find it interesting and thought provoking ideas to save your money, please drop your comments. These ideas are not new ones, everyone knows these ideas. These are only few of ideas to start the savings, if you give thumps up to this article, I will come up with another article (part 2) for this article with some more interesting ideas. Looking for your feedback on this article.