In theories, there are hundreds of ways to save money. But, of course, applying them first-hand is easier said than done. My first and foremost important tip is ‘ not to spend on something just because your colleague/ peer/ friend/ neighbor did it. Never spend on society’ approval! “
That being said, here are eight smart and practical ways to save money:
(i) Increase your income
If you’re earning more, you will be saving more without any added effort. It’s as simple as that. So, above all, look to have multiple sources of income. Aside from your day job, pave the way to welcome extra money. Invest in stocks, freelance, start a side project/job.
(ii) Download a budget-tracking app…
Or maintain a budget journal.
You will never be able to save money unless you’re conscious about where, when and on what you’re spending your income. An app or old-school paper journal is the perfect solution here. It will help you know what exactly you’re doing with your money. Once you know, you can easily audit it to know about the unnecessary costs and spot saving opportunities.
(iii) Eat healthy and workout
How does this help you save money?
It does—it does in a BIG way. Did you know an American family of four spent $28,166 on healthcare? (Source) OR, did you know the out-of-pocket medical expenses make up about 62 percent of all healthcare costs in India? (Source)
When was the last time you fell sick? How much did the trip to the doctor cost you? Or, if you have someone at home who’s ill, what’s their medical expense?
If you eat healthy and exercise regularly, right from the early stage of your life, you would be much healthy, which will minimize the extravagant medical costs.
(Courtesy: Purely Inspired)
(iv) Keep a check on your outings
Sure, those weekend outings with friends are quite fun. But they are also very expensive. Eating in posh restaurants, hitting pubs, these cost a lot of money. So, if possible, end such outings. In a matter of a month, you will notice a big saving in your pocket.
(Courtesy: Thought Catalog)
(v) Your other entertainment avenues
Stop investing in so many subscription-based entertainment services. Do you really need Netflix, Hotstar, and Amazon Prime all at the same time? Do you even watch those premium channels on your setup box? Cut back your expense on entertainment avenues.
(Courtesy: The News Minute)
(vi) No, you don’t need to wear branded clothes
The obsession of some people for branded clothes is quite absurd. No, you don’t need Burberry, Prada, Levi’s, Wrangler and Provogue. Stop purchasing super-expensive clothes. You can literally get the similar quality of clothes at your local market/mall.
(vii) Save on electricity
There’s a good chance that you’re spending a lot on electricity. And there’s also a good chance that you can save big here. Save energy. Don’t always use AC. Switch off everything when you leave a room. Invest in energy-efficiency fixtures.
(Courtesy: Root Electricity)
(viii) Look for deals on groceries
Buying groceries online is easier than ever. And it’s also very cost-effective—if you’re buying a lot of things in one go. In addition, with additional discounts, exclusive offers, and coupons, you can score your groceries at a much cheaper price. So, at the start of every month, go to an app or website and shop for 30-day items. You will be surprised how much you can save this way.
These are eight smart and practical ways to save money. Hope it helps. Good luck!