One of the most difficult aspects of personal finance is figuring out the best way to manage the personal budget. When already on a tight budget, it's not easy to find additional ways to save money. Deciding on the optimal place to start can be a challenge.
It is often the simplest things in life that will help save a large amount of money in the future. Below are five simple and practical tips to cut back on expenses and increase savings.
Save your bonuses
That extra money you find in your pocket, or a bonus that you get on any of your purchases will surely bring you an instant rush of happiness. However, instead of spending that amount, pay yourself first by automatically depositing it into your savings account.
Do it for larger amounts too, such as your tax refund or a year-end bonus. Help yourself by putting the additional amount into your plan to grow your nest egg faster.
Make meals at home
Making meals can be tough after a long day at work. If you eat out often, then start by cooking at home at least twice a week. You can then slowly build up the routine to three or four times a week.
Another option will be to set aside a few hours on Sunday to meal prep a few easy dinners for the week. Pop them in the freezer and you won’t be tempted with takeaways or packaged meals midweek. This way you will have a meal ready when you come home from work.
Cutting out these small expenses can add up to thousands of rupees in savings each year eventually.
Set a shopping limit
Shopping is something that is unavoidable. However, it is important to put into practice the idea of creating a shopping limit. Make it a habit to avoid buying things on impulse. Even if you find something really expensive, give a second thought or even wait a day or two, and see if you are still thinking about it. Make your decisions based on that.
At the same time, check for printable coupons or promo codes from coupon apps you could apply to save money on the purchase.
Get rid of unwanted stuff
An easy way to earn an income is by clearing out unwanted things at home. If you have been living in the same house for over a year, chances are that unless you are super-organised, you’ll have at least a few things that are worth selling to make some extra money.
It can be the clothes that you wouldn't wear or books that you are not going to read anymore. Selling them can help you save money and space in your home.
We may not realise, but we often end up spending a lot on transportation especially if your work requires you to travel often. For a small percentage of the cost of owning a vehicle, you can actually use that to get from one side of town to the next, to work and back, and to most important events.
The best way here is to opt for cheaper options like cycling or walking in case of short distances. Rideshare services or using public transportations makes it easier than ever.
(Edited by Anju Narayanan)