1. Credit Card / Personal Loan
-Do not use credit card without
knowing your repaying capacity. You will be surprised when you see the Interest
& other charges when you default a payment or pay only the Minimum Amount
Due.
-Some credit card companies
attract people by offering Interest free EMI. This is a catch. They will charge
a one-time, upfront service charge, which will almost translate into your
interest cost.
-If you have personal loans and
have some surplus cash, better to partly close the personal loans.
-With RBI increasing the rates do
not get into a debt trap.
2. Be diligent in buying
-One thing most of us do not do
is bargaining. Of course, in supermarkets, the prices are fixed. But you can
still ask for a product with different brands at a cheaper rate. Why pay for
brand cost?
-Look for per unit cost. A
shampoo sachet (2ml) may cost lower per ml than a 100ml can. You can check for
yourself. Buying huge quantity will not only becomes waste, but also is not
cost effective.
-Look for the expiry dates. If
you are buying in bulk, it is better to buy a recently packed/manufactured
goods.
-If you have discount coupons,
use it when required. Do not buy because you have coupons.
-You may get a good bargain outside
your supermarket. Of course, you will not get the convenience of shopping
there.
3. Plan your travel. It has a
cost
-Do car pooling. It saves money
for you and for nation. Plan your travel time. Less traffic means fuel
efficiency & less stress.
-For short distance &
traveling alone - use two-wheeler (of course, wear helmet)
-If you plan to go to a place and
have time - look for Public Transportation If you have no time, take an
auto-rickshaw and give a thought to taxi finally.
-Plan ahead and book a train /
Bus for an overnight journey. If not, you will end up driving or flying. Plan
your flight trip well ahead, so that you can get a better deal in the net.
-Fill fuel early morning (before
7am). Once the heat sets in, the petrol expands and you pay more for less fuel.
Always fill your tank full and fill when your tank is half.
-Regular service and proper tyre
pressure will save you fuel.
4. Communication
-Nowadays, the communication cost
has come down. It is psychological that when you know something is cheap, you
dont mind spending and end up paying more. So, use your mobile & land-line
diligently for long distance (Domestic & International).
-Look at other avenues like Chat,
Skype, etc., Few of them have video facility too. Above all, they are free. This
can be used for chatting with friends.
-Remember - mobile phones not
only comes with charges but also with heath hazards like radiation.
5. Electricity
This is what I have done in my
home.
-Take bath at a particular time -
This will improve the Geyser usage. This is the main contributor for the bill.
If possible and you are used to - take cold water bath. It is good for health
& purse.
-Switch off lights & fans
when not. Use CFL bulbs.
-Accumulate your clothes for
ironing and do it once or twice a week, depending on the requirement. This will
save your time and also power.
6. Cooking cost
-Eat together - this will reduce
the separate heating cost and it is good for family to have food together.
Remember, the subsidy on LPG is going out slowly and Microwave is not good for
health.
-Prepare yourself with the
vegetables before cooking. Buy vegetables, which has good shelf life, once a
week and use them. This will reduce your trip to the stores. Do not waste food.
7. Water
-For those in multi-storeyed apartments
& individual houses, water cost is a nightmare. So, use the water
diligently. We use the recycled water (from the water purifier) for plants.
-Use bucket for bathing than
using Shower.
-Don't keep the water running
while washing vessels/clothes, brushing teeth, shaving etc., -This is
applicable for washing vegetables & fruits.
-Take water from home in a pet
bottle. It is good for health and also on your purse.
8. Entertainment &
shopping malls
-While we crib about increasing
cost, we do not want to restrict ourselves from spending. Look at possibility
of reducing the number of visits to multiplex. There are cinema theaters still,
which are air-conditioned, with DTS effect. Only thing that will be missing is
the luxury chairs. Remember, we are going to be there only for 2-3 hours. Why
spend money when you have plethora of channels for entertainment.
-If possible, avoid visiting
malls. The offers will attact you and you may end up buying, which you may not
really need. It is better to keep the credit card at home when you go there.
-When in need for buying, look
for offers around your place.
9. Exercise regularly
-Keep your body fit and in good
condition. The medical cost itself will kill you. It is better not to fall sick
nowadays. Sleep well, exercise regularly & have a good eating habit.
-Take a medical insurance, if you
do not have one.
-Look for some stores, which
offer discounts on medicines & other items sold by them (example: MedPlus).
10.Monthly budget
-Prepare a monthly budget and
spend some time in monitoring your expenses against the budget. It will work
and is working for me. If you have any annual payouts like Investment for tax
savings (PPF, LIC Premium, etc.,), annual fee for the kids, start a Recurring
deposit with a bank and make sure the amount is made available for your use.
-Plan and spend for essentials
& necessities. Avoid luxury items if possible.
-Monitor and revisit your budgets
atleast once in 3 months.
