13 clever hacks to save money
A thread...
Hack #1
Automate your savings
If we have money in the bank, we tend to spend it.
So move money out of your bank account.
For ex:
- Sign up for as much EPF deduction as you can, so it never even reaches you, but continues to compound.
- SIPs (and don't stop them!)
- Open a separate investment account. As soon as your salary hits, sweep your investment amount to that account.
Park your emergency fund, your SIP installments, your lumpsum investments there.
Basically, automate your investments!
Hack #2
Try a non-spending day
We don't realize how we end up spending everyday, even when we do not need to.
Try "fasting" with your money.
Once a week/fortnight/month - do not spend on anything.
This will require preparing in advance, which is why this hack works so well.
Hack #3
Use UPI instead of credit cards
1. Credit cards give the illusion of money, which you may not have. So we tend to overspend.
2. UPI is free (a lot of places still charge a surcharge on credit cards)
3. UPI is money you have. So you tend to spend accordingly.
Hack #4
Use credit cards, ONLY if you have 100% of the money
1. You get an interest free loan (30-45 days). If your credit card spend is a lot, park that money in a debt fund and earn some free money (for doing nothing!)
2. You build your credit rating
3. You earn reward points
Hack #5
Use shopping lists
Even if you are shopping online, make a list.
A list is proven to make us stick to it, as against window shop and start drifting.
Hack #6
The 30-day rule
If you really want to buy something, wait for another 30 days.
Chances are high you would not need it after 30 days.
Hack #7
Rent, if you need it occasionally
Don't buy things you wouldn't use frequently.
For ex: I rent my camera lenses. The lens I prefer are insanely expensive (5L+) and I pay peanuts to use them for at most 7 days a year!
Hack #8
Buy bigger sizes
Bigger sizes tend to be cheaper, on a per unit basis.
For ex: Water 500ml is way more expensive than water 20L can.
(On that note, please don't buy water!)
If you have the space to store, go for it.
Hack #9
Use incognito while buying online
I have no way to prove it, but I have seen prices go up if I keep searching for items online, be it flight tickets or even products on Amazon.
Use incognito to make purchases online.
Hack #10
Pay off your loans faster
Just because you have a 25-yr home loan, doesn't mean you take 25-yrs to pay it off.
For ex:
1 extra EMI/year (so 13 instead of 12) + increase EMI by 10% every year, reduces a 25-yr loan to just 10yrs!
You save 60% on your interest amount!
Hack #11
Buy life insurance early on
When young, the premium amount is much lower, because you are healthier with lesser chances of death.
And you lock that premium for the entire period.
For ex:
If you buy insurance at 25, until 65...
...you get 40 years of cover and STILL end up paying lesser premium, than if you were to buy the same cover at age 35 (and only get cover for 30 years)
Hack #12
Create a budget
Boring...! But it works.
Please prepare a budget for your expenses - your needs, your wants, your investments.
For ex:
50:30:20 is a good rule to start with.
No more than 50% of your income towards your needs (EMIs, food, utilities etc)...
...No more than 30% towards your wants (gadgets, vacations, indulgent fashion etc)
and atleast 20% towards investments
This might help
Hack #13
Use deals/discount platforms whenever you can
There is no shame in using coupon codes, or buying vouchers to save money.
It is your money!
Be smart about it.
Till date I get emails from users who saved thousands in a year using nearbuy.
Bonus Hack:
Saving money will not get you too far. The key is to focus on your income.
Here is the truth:
To survive, you have to spend a certain amount. You can't (and shouldn't) go lower than that. There is a cap.
But your income has no cap!
Build income streams beyond your core job
1. Invest
2. Start a business
3. Create intellectual property
4. Build a personal brand
5. Freelance
We live in a world of unprecedented opportunities.
Make the most of it.
Do not save what is left after spending, but spend what is left after saving.
โ Warren Buffett
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