How to save money

We all have our own purchasing habits....whether it's the kind that makes you broke after the first week of the month or enables you to save some every month, it's upto you to choose. 

Indian consumers are rational consumers. Because we have learnt the art of living life within our means (at least most middle class and lower income families).

And by being really rational...you can save a lot using these simple tips to help you save...used by me and many other thrifty people who don't like to spend it all at once.

1. Keep a record of your earnings and spendings in the form of a book or in your phone's notepad. It helps you become aware of where your money goes so you can review and assess your purchasing habits....yes, especially when you go broke and haven't the slightest clue about how it happened.

2. Carry only as much money as you plan on spending. You can take a little extra...but not too much as it can become temptation to spend.

3. Use paper money as much as possible cause it helps you realise how much you're spending. You also feel the pinch of spending more, when you use paper money.

4. Before shopping, keep a timer on your phone and get your shopping list ready. This trick will help you save time and money as this restricts your gaze from loitering towards buying useless/unnecessary things.

5. Limit eating out to once a week or thrice a month. Food is way more expensive at restaurants. And chances are, if the food is cheap, it's probably unhealthy for you. Learning to cook is a life skill that'll help you eat healthier and save a lot!

6. Before making a big purchase, wait till you save up enough money to buy two and then if you still want it by the time, buy one. This prevents you from going broke after big purchases.

7. Accept that some people or "so called friends" will call you all kinds of mean things cause you want to value money and save up. Maybe in time they'll understand, if not...you can always make new friends.

8. Be skeptical about discounts and special schemes/sales. They are usually used for damaged/inferior products or products that are close to their expiry dates.  Sometimes, they are used for new products.
Being skeptical saves you money and another trip to the store to buy another one or get a replacement.

9. Learn to have fun by spending no money or a little money.  For example, writing, playing cards, singing, walking in parks, etc.

10.  When you write a shopping list, divide it into two parts, one for essentials and one for things you can manage without. First purchase your essentials like food and hygiene products and then proceed to purchase the others.

11. Learn to value money given to you by your parents/caregivers, relatives as pocket money, gifts, etc. Someone somewhere has worked hard for it. Value others money as your own, don't take advantage of people cause of the money they have.

12. Keep two wallets. One where you store all your money...what I call my "home wallet" and one that I take out with me. Gradually transfer small sums of money from your "home wallet" to the other as and when required.

13. Keep short-term and long-term financial aims. For example, a new phone, a scooter, retirement plan, a house, etc. This motivates you to stick to your new saving habits.

14. Use your things until it can't be fixed or reused. Don't just buy new things cause you can.

15. Try not to be wasteful. Make things last longer.

16. Don't focus on saving and neglect yourself. Invest in yourself by spending on Healthcare, therapy and vacations/trips.

17. Don't purchase things only to show off. You don't need to prove yourself to anyone.

18. Plan ahead for months/weeks you know you'll need more money. Save accordingly. For example, Christmas week.

19. Be friends with people of all economic classes. Their insights regarding money will help broaden our perspective towards money.

Have more tips to share? Leave it in the comment section for all of us to make better choices.
Happy saving! :-)