You must have been through endless conversations, articles and advice from peers about the virtues of saving money. About how it leads to a secure future, how money multiplies to become wealth and how it's prudent to start early to reap the most benefits.
All that's more than true. But the reason I am asking you to read on isn't because saving is the smarter way to live; it's simply because you do not need to spend what you are probably spending to have the lifestyle you want.
In other words, by simply not wasting money, you will end up saving quite a bit.
1. Keep plastic money to a minimum
Learn to be conscious of the money you are spending.
Swiping a credit card for Rs 1000 does not pinch as much as fishing for the 'big' notes in your purse. Have a ballpark estimate of your expenses before you leave home and carry that amount in cash with you.
What this ensures is that most credit card transactions you make are on unplanned, mostly frivolous expenses. This will help you cut down on your credit card spending.
Credit cards get you into the bad habit of swiping first, evaluating later. This way, every time you are about to make a purchase on your credit card, it will be a little reminder to re-evaluate your purchase.
2. You don't need to spend money to have a good time
After a hectic workday or on a weekend, what do you really need?
Maybe sometime to wind down, someone to talk to, maybe just a long walk by you. It's quite unlikely that spending money is your preferred way of a weekend therapy.
Yet, a lot of us just get into this mindset where we have made up our minds that 'enjoyment = money'.
So on evenings after work or on most weekends, we either visit crowded restaurants or even more crowded pubs/clubs. Just reflect on the last 'fun' outing you had. It would have included either great company or great conversation, either of which you don't have to pay for!
So buddies, catch up with some friends after work, or invite them over on the weekend. Besides being a cheaper entertainment alternative, it will prove to be far more enjoyable than your earlier routine.
3. Monthly 'harmless expenses'
"The electricity bill is a little steep this month", "Did I make these many calls?", "Who is reading all these newspapers!".
Do these laments sound familiar? Most of us do not take electricity consumption, phone bills and newspaper/magazine bills seriously. Though they might seem trivial in the day-to-day scheme of things, they add up to quite a sum by the year-end. There are ways to curb this.
Do not let the air conditioner blast away all night. Set it on timer mode, usually about three hours of air conditioning is enough to cool the room for a night. As far as phone bills go, it's not the frequency of calling that does the damage; it's usually the duration of those long calls you make.
Higher rentals might actually get you lower calling rates if you are an extensive phone user. Check for tariff updates from time to time to ensure that your usage is optimised by your current plan. And if you frequently come across unread newspapers and magazines, cut down on your subscriptions till the time you can spend on reading them.
If you are buying newspapers just for a cursory glance at the headlines, you might think of getting your daily news dose online.
4. If it means a lot to you, don't bother saving on it
Overspending is usually occasion or habit-based. A lot of overspending is also tagged to your recent past.
Either a tough week at work or home or simply the fact that you haven't splurged in a while will get you off on a spending spree. Not making a significant purchase or expense for an extended period of time leads to 'spending frustration'.
The best way to tackle this is to spend on items or experiences that you value.
It is pointless cutting corners on these expenses, as there will still exist your spending frustration. Complete splurging, in short bursts, actually helps curb spending over a period of time by satiating the need to spend.
And what better way to pamper yourself than spending on something you love!
5. Make saving worthwhile
Saving is not an activity; it's a way of thinking.
Over time, you will realise that besides saving just money you have become more efficient and also manage your time better.
Learn to save from instinct, not from budgeting sheets. Don't keep a painful detailed track of how much you have spent, and how much you have saved.
Take each saving decision on the spur of the moment, depending on the prevailing circumstance.
Keep broad goals that you have to achieve every fortnight or every month. On meeting these goals, reward yourself!
Yes, take the evening out and treat yourself to a good time. It might involve spending money, but remind yourself that this time you have deserved it. This is a foolproof motivation to keep your saving mindset always on the alert.
Do you agree with what you just read? Do you also believe that you should save money instead of blowing it up all the time?
Share your saving strategies -- conventional or otherwise -- with us. They could be the usual, out-of-the-box or just plain bizarre -- we want to hear about them! Write to us at getahead@rediff.co.in and we will publish the best entries right here.
