Everyone wants to earn more and save more. That’s why we have so many investment schemes and instruments such as bank fixed deposits, mutual funds, endowment insurance plans and real estate investment funds. How can you save more money every month? All that you need is a bit of planning and some stringent check on your unnecessary expenses. Living a frugal life will help you save more each month.
1. Cut Down on Your Spending
Some expenses are necessary such as house rent, loan payments, food, clothes and medicines. You cannot cut down such expenses. However, there are many more expenses that we incur even when it is not necessary. Sometimes, we spend more money than required on meeting the basic necessities of food, clothing and shelter. Be frugal with your household expenditure.
Cutting down on spending does not mean buying substandard products and services. Opt of products and services that offer the maximum value for money. For instance, when buying a furniture, go for a durable product that will last longer and offer more value for money. Buying a cheap product might mean you end up replacing it sooner, making it more costlier that a higher priced alternative.
2. Avoid Ready-to-Eat
Don’t just stuff your shopping cart with ready-to-eat food cans. Try to replace them with grains and fresh vegetables. Cook at home for a healthier meal at a lower price. For instance, why just ready-to-eat cereals and cornflakes for breakfast. Try having fruits and salads along with bread.
3. Dine Out Only Occasionally
If you are among those who dine out too frequently, you can reduce your monthly spending and save more money each month by limiting such dinner to a couple of times a month. Plan for dinners and culinary extravaganza at home to save money while still enjoying your time.
4. Movies Out of Cinema Halls
Going to a cinema is costlier than renting a movie online or through a DVD rental store. There are many on-demand movie streaming services that you can use. Though you might not have the advantage of a huge screen, you can enjoy your movie no less than going to the cinema. You save on travel and food cost as well.
5. Stay Fit Without Gym
Paying for a gym or fitness centre membership? Why not consider jogging in your local park? You get to enjoy the nature and breathe fresh air. Try investing in a bicycle for your daily exercise routine. You might also purchase the basic exercise machines to set up your own gym in your house.
6. Walk When You Can
Why take a taxi for short distances that you can cover on foot easily? Rather than taking a taxi ride or using your own car, walk. This will save you money and also keep you fit.
7. Get Rid of Your Bad Habits
Quit smoking. You will save a neat amount every month. Why contribute to the wealth of big tobacco companies at the cost of your own health and wealth? If you drink, quit or reduce it to the minimum. It will also save you money. If you have other habits, try to get rid of them too.
8. Use Electricity Wisely
Don’t just leave your lights and fans on in your house. Switch them off when not needed. When using an air conditioner (AC), do not turn the temperature to the extreme low. Use your AC in a manner that the house is pleasantly cool, not chilly. It will reduce your power bill to a great extent.
9. Pay Your Bills on Time
Are you a habitual late payer for your utility and other bills. Start paying on time. Yes, paying your utility and credit card bills on time will save you the extra penalty amounts.
10. Avoid Credit Card Debt
Don’t ever try to swipe you credit card for any discretionary spending when you do not have sufficient money to clear the credit card dues when the bill arrives. Any loan or balance payment on credit card is a really bad idea. You end up paying a hefty interest to the credit card company. If you really need something, get a bank loan.