1. Automate your savings
If we have money in the bank, we tend to spend it. So move money out of your bank account.
For example:- Sign up for as much EPF deduction as you can so it never even reaches you but continues to compound.
SIP ( and don't stop them )
Open a separate investment account.
As soon as your salary hits, sweep your investment amount into that account.
Pack your emergency fund, your SIP installments your lumpsum investments there. Automate your investment!
2. Try a non-spending day
We don't realize how we end up spending every day, even when we do not need to.
Try "Fasting" with your money. Once a week/ fortnight/ month - do not spend on anything.
This will require preparing in advance, Which is why this hack work so well.
3. Use UPI instead of credit cards
01. Credit cards give the illusion of money, which you may not have. So we tend to overspend.
02. UPI is free ( a lot of places still charge as a surcharge on credit cards )
03. UPI is money you have. So you tend to spend accordingly.
4. Use credit cards, only if you have 100% of the money
1. You get an interest-free loan ( 30-45 days ). If your credit card spend is a lot, park that money in a debt fund and earn some free money ( for doing nothing!).
2. You build your credit rating.
3. You earn reward points.
5. Use shopping lits
Even if you are shopping online, make a list:- A list is proven to make us strick drifting. as against window shop and start drifting.
6. The 30-day rule
If you want to buy something, wait for another 30 days. Chances are high you would not need it after so days.
7. Rent, if you need it occasionally
Don't buy things you wouldn't use frequently.
For example:- I rent my camera lenses. The lens I prefer are insanely expensive 5 lakes and I pay peanuts to use them for at most 7 days a year!
this is just an example!
8. Buy bigger sizes
Bigger sizes tend to be cheaper, on a per unit basis.
For example:- Water 500ml is way more expensive than water 20L can.
( On that note, please don't buy water! )
( On that note, please don't buy water! )
If you have the space to store it, go for it.
9. Use incognito while buying online.
I have no way to prove it, but I have seen prices go up if I keep searching for items online, be it flight tickets or even products on Amazon.
Use incognito to make purchases online.
10. Pay off your loans faster
Just because you have a 25-year home loan, doesn't mean you take 25 years to pay it off.
For example:- 1 extra EMI/year ( so 13 years instead of 12 ) + increase EMI by 10% every year, reduces a 25-year loan to just 10 year
You save 60% on your interest amount!
11. Buy life insurance early on
When young, the premium amount is much lower, because you are healthier with lesser chances of death.
And you lock that premium for the entire period.
For example:- If you buy insurance from 25, until 65 You get 40 years of cover and STILL end up paying a lesser premium, than if you were to buy the same cover at age 35 ( and only get cover for 30 years )
12. Create a budget
Boring...! But it works.
Please prepare a budget for your expenses- your needs, your wants, your investments.
For example, 50:30:20 is a good rule to start with.
No more than 50% Of your income towards your needs ( EMI, food, Utilities, etc. )
And at least 20% toward investments
No more than 30% towards your wants ( gadgets, vacations, indulgent fashion, etc. )
I know it sounds good but it is very difficult to manage yourself in this way but try it. If you don't follow all steps then some steps but follow.
Use deals/discount platforms whenever you can
There is no shame in using coupon codes or buying vouchers to save money.
It is your money! Be smart about it.
Tags:
Self-help and self-aware