While there are families which save and invest for the future, there are many people mostly from the middle class who, though they want to save, cannot not save properly. Even if they do save, unavoidable expenditure punctures their plans. Sometimes, even miniscule expenses may seem important and affect your savings in the long run. Here are some of the ways which can help you to slash unnecessary expenditure and make the coming New Year a really happy time.
Find out monthly expenses which are necessary
Make a list of expenses which have to be incurred in a month and then make a budget accordingly. Those of you, who make a rather unrealistic budget in their enthusiasm to make a new beginning, count every possible expense that you may incur in a month. Now important bills like rent, utility bills, transportation costs, food, etc should be set aside and close attention paid to the remaining estimated expenses. Are they really so important that your existence will suffer if you don’t sustain them? If the answer is no, move ahead and cross them off your budget.
Compare and compare
There is a tough competition in market for cable connections, satellite TVs, phone operators, etc and you should choose the best plan which fits your budget and lifestyle. Do not get flattered by advertisements. You need to do research on your own about the most economic offers in the market. Do not hesitate to call the operators and negotiate with them as these are the long-term costs and you will need a smart plan in order to not lose a major portion of your income in landline telephone bills.
Save on food and grocery
Grocery items are one of the things if not planned thoroughly, can take up most of your income. Instead of stocking up on cereals, beverages and meat which are well-advertised, buy vegetables, bread and coffee beans which you can cook yourself. Cooking is not only much less expensive but it makes sure that you are eating a healthy diet. Pack your lunch from home rather than buying it every day for Rs100. If you are a coffee lover and pay a homage visit to a cafe regularly, invest in a coffee machine which comes for around Rs 2,500 to Rs3,500. It’s not much if you compare it against Rs 60-80 coffee daily.
Say hello to insurance
The major expenses which account for a substantial portion of your income are medical bills, automobile repairs and home renovations.
To remedy this, opt for insurance plans such as health insurance, life insurance, auto insurance and house insurance. The market is crowded with numerous competitive insurance plans and a smart decision will lead to a considerable decrease in monthly as well as yearly expenditure.
Savings in general
Avoid purchasing the items which are unnecessary right now and you think you might not need them for longer periods. If you are single or staying alone, consider a smaller place to live than a sumptuous 2BHK setting. Instead of buying a brand new television set, computer system or a car, think about the second hand ones working in great condition or you may also lease them from online used items lease websites. Try to save as much as you can and always think that the extra money lying in your account does not exist; it helps a lot in money management.
Now that you are ready to implement your newly learnt saving powers, keep a few additional tips in mind. The money saving techniques (in the table) are not only great money saver options but they also help you in getting that fund-cushion which is important in case you hit a dry spell or any emergency.
