Sometimes the hardest thing about saving money is just getting started. This step-by-step guide can help you develop a simple and realistic strategy, so that you can save for all your short- and long-term goals.
1.Don’t use credit cards
– You buy the items, which you don’t want from the money you don’t own! I spent more than 10 lacs from credit cards & paid heft interests. It took almost 8 years for me to get rid of them!
2. Don’t smoke
– I spent almost 45000 Rs per year on cigarettes when I was smoking actively. I am spending this money on reading books and travel now.
3. Don’t drink
– I spent approximately 65000 Rs per year on drinks. Now I am investing same money in stocks.
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4. Don’t take emotional decisions on money matter
a) When I built my house in my hometown , I wanted it to be the tallest building in our area. I did it ! But it was a wrong decision. I spent extra 10 lacs foolishly on a liability.
b) Once I was travelling back to my hometown after attending a function. I was waiting for a bus along with my 1 year old son and wife. It was a small village and there was no major bus stop. We waited almost 30 to 45 mins . I told to my wife “First thing we have to do after going to Bangalore is to buy a car !” . After 3 weeks , I was driving this 🙂
5. Walk 1 hour daily
6. Carry a water bottle from home when you go out
7. Don’t shop on empty stomach
8. Buy amazon prime membership
9. Start noting down all the expenses. Even as small as 1 Rs
10. Ask for 10 % discount when you goto any medical stores . They generally give.
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11.Avoid Junk food
12. Don’t buy clothes unnecessarily
-I have 75 + shirts , 25 + T shirts & 15+ Jeans . But most of the time , I don’t use many of them.
13. Read books on money management
14. Avoid complete intake of sugar
15. Don’t buy costly phone
16. Record your expenses
17. Include saving in your budget
18. Avoid using credit to pay your bills. While it may make things easier now, using credit only increases your monthly payments in the future.
19. Save regularly. Have some of your paycheck directly deposited into your savings account or set up an automatic transfer each month from your checking to your savings account.
20. Check your insurance policies. Review the coverage for all your plans. You may have too much and be wasting money or too little and not be adequately covered. Virginia CU Insurance Services can help you find the best coverage at the best price.
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21. Be careful about spending a significant amount of money on periodic purchases, like gifts and vacation. While you may feel good while you are spending the money, you may wish you had the money later.
22. Cut or downgrade your services. Can you get a cheaper cable package or have no cable at all? If you have a cell phone consider cutting your land line.
23. Try lowering your energy bill. Turn off appliances and lights when they are not needed. Purchase energy-efficient light-bulbs. When you can, use a fan instead of air conditioning or put on a sweater instead of turning on the heat.
24. Consider signing up for online bill payment. Not only will you save on stamps, but you can make sure your payments are received on time. VACU’s online Bill Pay is free for members.
25. Cut down on take-out ordering. Even if the meal is not expensive, doing it frequently can really add up. A $10 pizza once a week will cost you over $500 a year!
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