Saving money is the first step towards investing. Only if you save you can invest! With inflation hovering in double digits we actually need to save money to secure our future.
Money saving is simple. Anyone can do it. While practicing, it shouldn’t happen in a way that takes down the quality of our present life style.
One needs to identify the ares of his/her spending. Look out for areas you spend more. Look out for alternatives in that areas and try and save as much as you can. Keep a goal to save money and try achieving it every month, and track your expenses on a regular basis.
Here are the top five ways to save money :
- Save money on Transport: Petrol prices in India are now around Rs 63/- a liter! Use public transport to travel or start carpooling. Saving fuel is equivalent to save money.
- Use Electricity wisely: Regardless of who ever you may be – an entrepreneur or a working professional save money by using electricity wisely at your work place and home as well. This is an area where you can save maximum by switching off the instruments when not in use.
- Cut down cost on Phone calls to friends use Facebook/Gtalk to chat! – This expense can be avoided. Phone cal your friend when it’s really urgent, just to chat use the internet as it’s free.
- Reduce your weekend expenses: Don’t watch too many movies outside in theaters rather watch them at home. Reduce your out side food eating activities this can have dual impact – savings of money and good health!
- Find out Deals and Discounts: Before going for shopping check out if there are any deals and discounts/sales going in your vicinity! This trick has saved at least 40% for me every time when I go for shopping, it should work for you as well.
- Bonus: Reduce your debt activity – Don’t rely much on debt try not using your credit cards. Use debit card’s instead or better cash. People generally tend to over spend because of credit cards.
- Bonus: Set financial goals – Write down your financial goals target it long term and save money in short term (monthly)!
What next? Start investing in SIP’s every month to have a better future. Investing in SIP’s makes sense as you would save money on monthly basis and would invest the same in SIP’s.
Have more point’s to add? Comment!
{ 5 comments… read them below or add one }
Nice one Chirag.
I am planing to cut my expenses by 10% on a monthly basis.
Hope to save and invest more.
I am glad Gopal you liked it
but arent SIP’s subject to market risk ??? Isnt it better to rather open an recurring deposit a/c ??
I go with the funda Higher the risk higher changes for better returns.
SIP’s is good for investors which some risk appetite.
Agree with your point.
People who are not willing to take risk need to stick to FD’s and RD’s!
Blog post on the same : http://www.investologic.com/educational/sip-and-rd/
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