If we do not first give ourselves strong reason to save money we will ultimately get spend unnecessarily. But it requires even greater skill to keep the accumulated saving from getting spent on useless things. Suppose you decide that you want to buy a car, it is very easy to get car loans these days.
Even though you are not planning to buy a home today, imagine that what if you have a home for which you are required to pay EMI.
Suppose your net income per month is Rs 10K, in this case you can pay Rs 3000 as your imaginary EMI. Buying groceries in bulk from places like D-Mart can reduce your monthly bill by about 3-5%.
Before you swap your credit card, ask yourself if you had to pay by cash, would you have paid for this purchase?
Depending on ones requirement, it is advisable to save 12 months prior to the real expense date.
In my house I have noted items like kabuli chana (white gram), rajama (kidney beans), maida (wheat flour), tooth paste etc frequently appearing in forgotten-list.
So out of the 38,000 that is left in each month would you suggest me to repay all this amount towards my loan or repay only 30,000 and put the remaining 8,000 in my savings account? My question is, is it reasonable to take a personal loan at 16.53% interest to clear off credit card debts? I want to invest of Rs.10,000 per month in mutual fund through ECS for long term (15 years).
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Before we begin, let me tell you a story. Last year, I bought a Macbook pro for less than 50k INR.
And if you are like me, who always looking for best deals, then check out freekaamaal or indiafreestuff. Except Flipkart and Amazon (rare), almost all others eCommerce websites offer coupons code. Websites like cashkaro, give you 5-10 percent cash back, on every purchase you make through them.
Also, some store pays hefty cashback when you use an alternate payment system like Paytm or PayUmoney. Online stores often offer some products on zero percent EMI ( or cashback) with credit cards. With these simple tips, you can easily save 10-20%. Always remember, there is always a way to get more discount, all you have to do is research.
To qualify for free shipping in Amazon, you need to have a minimum cart value of 500 Rupees, but if your total order is below that threshold, then you will have to pay the shipping charges i.e.
Simply order a cheap beauty product or a book fulfilled by amazon and your shipping will be free. However, they are my first choice for paying regular bills like electricity, broadband, DTH etc. Especially if you are starting career you will likely to remain in tight income situation at beginning.
This is the reason why even if we save heavily but ultimately we end up spending all that we saved.
If we have too much liquid cash in your wallet it gives us innovative ideas of spending it on trivial things.
But generally we end up spending all of our our pay rise by increasing only our expenses column. If you will decide today, tomorrow you will get a car loan and within a week the car will be at your door steps. Prepayment has not only allowed me to save on interest but it also allowed me to close my loan in half the tenure. You will agree that the easiest way to save money from salary is by opening a savings account. A simple Google search for coupons can save 1-20% easily. A good place to start will be coupondunia or couponraja.
Now, I have been using this neat little trip for 6 months now, and it working fine at the time of updating this post i.e.

However, I still don’t feel confident enough to order any physical product from them. It is easy not because the value is small, but because we cant do much with an amount less than $2,000. It should cover all expenses starting from utility bills, cooking gas, groceries, vegetables, vehicle fuel, house rent, EMI etc. This new piggy bank shall be used for bigger expenses like Home buying, new car, higher education for child etc. There was a stage in my life when I was diverting all of my ‘pay yourself funds’ towards my loan prepayment. We do not consider savings account as best option because it offers low interest on savings account. It is inevitable to buy gifts & arrange a small party during 3 birthdays and 1 marriage anniversary. Try this trick and you will be surprised how easy it becomes to save money month after month.
If you can also put your comments or subscribe us below, it will be an excellent feedback for us. Plus there was Rs 2000 gift card and there was SBI debit card offer, which gave me another Rs 1500 cashback.
Whenever you visit a product page, this extension will automatically fetch the prices of the same product from other websites.
Well, they have less know coupon page, where they host coupons code for every type of recharge and bill payments. My calculation says that if I would have made prepayment (instead of buying a Mac, I would have saved > Rs 250,000. But by the time we accumulate $2,000 as savings we start getting new Ideas of how to spend it. Expense that we fail to budget are vehicle insurance premiums, emergency funds, unplanned purchases, property tax, miscellaneous expenses, vehicle maintenance, gym, dining out, prepaid mobile recharge, etc. This transfer of money should be done the day pay cheque gets deposited in your salary account. As a rule of thumb, instead of paying just 20% as downpayment for a car you must pay at least 50% as your downpayment.Suppose your want to buy a car whose price is $13,350 (INR 6,00,000). Supposing that you are a 24 years old graduate just out of college and had joined your first job.
But if frequency of drinking can be reduced to once month, that itself can be considered as a success. This $15 is that money that no matter what we do, will never be needed to manage our day-to-day needs. Firstly the family realizes that if they want to buy a big thing it takes time to realize a dream. If you start this virtual home buying, by the time you are 30 and you actually need to buy a home, you might have already accumulated a good savings and you will exactly know how much EMI you can actually afford. Savings account, recurring deposit, fixed deposits are good saving options but it does not lock our money. So after a couple of months one does not realize that they are budgeting more than necessary. On the contrary, studies say that people who pay by cash are more likely to live more frugal life. Assets are accumulated by buying investments like stocks, mutual funds, Exchange Traded Funds, Bank Deposits, Bonds, Real estate, precious metals etc.
I will suggest my readers to at least once read this article on loan prepayment and decide for yourself whether this is worth trying or not. One day I was conceptualizing an article on personal financial statement and I got this idea.
So the efficient saving is that money that can never get spent & keep appreciating in value. Once you know your outflow you will be in better position to divide it in to necessary and unnecessary expense. Make it a habit of your family that in case they want to buy a thing they shall discuss with family and start a piggy bank for creating a savings fund. Lets open a savings account in a bank that is offering highest interest on savings accounts.
Since that day I have followed this practice and it really helped me to save money each month. One can either put them in fixed deposit, invest the money, lock it in emergency account etc. Some might ask that if we are locking our money for long term (in MIP max is 11 years), why not invest in equity?

The higher you are contributing to your Pay yourself column the more be your cash-in in the form of income. Rule is, you are not allowed to but the car till you have 50% funds ready for down payment in your piggy bank. Similarly if one is carrying any type of loan (auto, personal, education, credit card etc), saving must first be used to prepay loans. This will be possible if I can increase my savings in deposit from $2,000 to something bigger. Set aside each month a sum of money that on a later date you can use for buying your house or your car.
Remember we are using only the interest, without consuming the asset base (deposit amount).So we now know that a combination of saving and invest is essential. Knowing easy ways of how to save money from salary will help in the wealth creation process. But instead, we make more money by simply saving tax & clearing-out outstanding loan by prepayments. So such cash flow reports not only helps us to check affordability but it also helps to manage emergencies. Cut your transport expenseIn tough money situation you need to control your transport expense.
Use carpool or Public TransportTo cut transport expense further you can use car pool or public transport system. Control Utility usage to save moneyElectrical bill and gas bill is major utility expense today. Try to control usage of electrical bill switch off unused electrical appliance and you will see 20% reduction in utility bill.13.
Reduce Mobile Usage to save moneyIn tight income situation avoid usage of Mobile phone to save money. Select more economic mobile and Internet planAnother way to save money is to select more economical mobile and Internet plan.
Alternative source of Entertainment to save moneyInstead of going out for cinema, try alternative source of entertainment, either by playing game or by reading e-book online.16.
Avoid use of credit card opt for cash paymentCredit card money always cost you extra you should avoid use of credit card and opt for cash purchase.18.
Plan your annual vacation in advanceIf you are going for vacation every year in tight income situation you can either postpone it or plan it in advance to save on cost of transportation, hotel stay etc.19.
Check and swap your credit cardIt is not advisable to use credit card but if you are using one make sure it is economic in plan if not swap your credit card to save money.20. Avoid frequent visit at hotels cook at homeAvoid frequent visit to hotels make food at home to save money.21.
Change electrical appliance to energy-efficient applianceEnergy efficient appliance can lead to power saving.
If possible go for energy-efficient (energy star) appliance at home to save utility bill.24. Cancel unused memberships or subscriptions To save money cancel membership of gym, club, magazine which you are not using it.25. Shop at discount grocery storesChange your shopping location buy at shop where discount is applicable. Celebrate with simplicityIn tight income situation you should avoid unnecessary expense by celebrating birthday or anniversary or celebrate it with simplicity.35.
Make your own gift instead of buying from storeTo save money make your own gift or give low-cost gift while going for party.37. News paper expenseIn tight money situation cut your news paper expense and read news paper online in free.38.
Cable connection expenseGive disconnection request for cable TV connection to save money.39.
Start saving automaticallyOpen another saving account or recurring deposit account to save money automatically.40.
Avoid excessive use of credit cardAvoid excessive use of credit card to save money.Use these 40 ways to save money in India. Do share your experience.40 Ways to save money in India   Similar Stories:80 Best Tips to Save Money 35 Top money saving tips for 2014 How I saved Rs 30000 a year on household expenses?
I have 10 years of rich experience in the field of financial planning, Investments & Insurance.
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