10 Powerful Money Saving tips that have worked for me: Part 2
Before reading the second part, start with the part 1 of “Money Saving Tips”
I am not a qualified financial advisor, but over these years, I have learnt few things that worked for me in saving money. Continuing from the yesterday’s post, here are the remaining five money saving tips that have worked for me. You would’ve heard many of them and they are nothing but common-sense, if you actually look at them. They will work for you as well, I bet.
6) When you go in a group, Spend for yourself only
When going in a group, try to spend for yourself only. Don’t get me wrong. You can spend for your friends once in a while, but do not make it as a habit and becoming a sponsor of everyone. Have a check on the amount you spend. If someone is paying for you, give back your money to them or spend for them another time. Keep track of the records on things such as these – who spent for you and for whom you have spent. I don’t keep track of every cent with my close friends (‘You pay a movie for me, I will pay you the next movie’ kind).
7) Write some financial goals, now
Two years ago, without any serious intention, I jotted down in my personal journal that I would get a job in a year that would pay me Rs. 50, 000 a month (that was my financial dream, when I was working in a job with a paycheck of Rs. 16,000). A written goal clearly sets you in a positive direction; I had read that somewhere and thankfully it worked for me. A few months later, I was at the University of Adelaide doing a Master’s Degree with a scholarship. Do you know how much money I was receiving a month in Indian Rupees? A little over 50,000 rupees (tax-free). Fancy that?
How did it happen? With few written words and some extra work from me. So, do a favour for your financial future. Write down a reasonable goal that you would like to achieve and set a time stamp on it (Say, for instance, a saving of $2000 by December 31st, 2007)
Carry your lunch box
Oh yes, it works. The first thing I purchased when I came to Australia is a Tupperware lunchbox set to carry my daily lunch with juice. The lunch is often very modest – four slices of bread with peanut butter spread and chocolate spread or veggie burger – with squeezed orange juice. The lunchbox not only saved money for me, but it contributed my health as I stayed away from fast food. Occasionally (once in few weeks), I went out for lunch with my colleagues to have a cool ‘lunch chat’. When I had stopped carrying lunchbox while I was writing my thesis, lot of money went on the nasty fast food lunches.
9) Say ‘No’ to credit cards
I don’t have a credit card. Not even one. Some of my friends said, ‘credit cards are for emergency situations’ and gladly accepted them. Now, they are in trouble for their “emergency spending” on clothes, food and movies. When you have a credit card, it is easy to get tempted by the “0%, interest free loans”. I admit that I can not handle my temptations and I am weak on them. So, I have not even a single credit card. I spend it only from my debt card. And, anyway, my other account has my savings which I always can use if an emergency situation arises (it has no ATM card access but, I can transfer them online when I need in an emergency).
10) Have a financial advisor or refer some books
You can not be a financial guru and I am not one either. We need to know only necessary things that are enough to make our life comfortable. That’s my style. And, if you open your eyes and ears, you will receive good financial advice – I meant “good”, not some gossips or ‘quick-rich schemes’ (actually, they are quickly-broken) from half-cooked-experts (sadly, they happen to be your friends or relatives). If you are working, you will have an accountant working with you – so, ask them (My friend says so. ‘Is it so?’) over a cuppa. Or if you are like me, just keep tab on a newspaper’s financial columns or trusted books. If you think it is all over your head, then keep a professional financial advisor -
These tips are effective only when you act on them (doing is way better than just knowing). Start with a one or two. I would recommend you to start with budgeting (you just need to use your diary, that’s all). Without knowing where your money goes, it is difficult to save or cut-down your expenses. Just do it. As always, share your opinions on this post.
Read the part 1 of “Money Saving Tips”
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.