HOW TO SAVE MONEY IN INDIA – 65+ BEST TIPS (SAVED = EARNED)

Wondering How to save money? No worries, you are not alone.

If you have hard time-saving money or have no idea how to save your salary/income, you are in the right place.

You can most often save a lot just by becoming aware of your finances and spending habits. And following a few simple and practical tips to save money. Saving money doesn't always involve sacrifices.

Keep reading to know some easy strategies and money-saving tips that would be most helpful for you.

GENERAL TIPS TO SAVE MONEY:

HOW TO SAVE MONEY - 5 GENERAL TIPS TO SAVE MONEY 2021

TIP 01: LONG TERM AND SHORT TERM GOALS – A MOTIVATION TO SAVE MONEY

In reality, even if you start saving, without short term, long term goals, you would not have a disciplined savings habit.

To effectively save money, one should have some short-term goals like going for a vacation, buying a phone, laptop, furniture, bike, and Long-term goals such as your child's education, marriage, buying a home, car, getting out of debt, or for your retirement.

Without such goals, you wouldn't know what should be done with your savings. What you are going to do with your savings is as important as how much you are saving.

Prioritizing your short-term and long-term goals will motivate you to have a proper savings habit.

However, keep in mind that such goals should be realistic, don’t expect to save huge money in the short term.

TIP 02: CREATE A MONTHLY BUDGET – A DISCIPLINE TO SAVE MONEY

I assume you are reading this article because you have some financial goals that can be short term or long term.

How to achieve them?

Have you ever wondered if you are making the right decisions on spending your money?

The way you spend your money reflects upon your savings.

We generally fail to prioritize our finances, spending; Highly disregarded.

That is why you need to plan your Monthly Budget.

Budgeting is a process of planning to spend, save your money.

It allows you figure out if you have enough money, reduce your financial stress and create a way to save money for the future.

HOW TO CREATE A BUDGET?

CREATE A BUDGET TO SAVE MONEY - 8 TIPS TO CREATE A BUDGET 2021

Step 1: Calculate your monthly income/expected monthly income.

Step 2: Make a list of monthly expenses. Bifurcate them into Fixed, variable expenses.

Step 3: Calculate Expected Savings per month (Total Income – Total Expenses).

Step 4: Separate Needs from Wants.

Step 5: Make Adjustment to Expenses; give priority to needs over wants, check if you can reduce any of the variable expenses and in case your savings are far less than required look to adjust fixed expenses.

Step 6: Out of savings, give priority to create an emergency fund first. It is recommended to create a fund which equals 3 to 6 months monthly expenses. Never touch this unless in a case of emergency.

Step 7: After creating above corpus, plan savings towards your other financial goals. Make sure to keep the planning/goals specific, Measurable, Achievable, Realistic and time bound.

Step 8: Track every month actual expenses, income against above and make adjustments wherever required.

Many mobile apps can help you handle budgets in case you find hard to plan a budget.

After budgeting, if you feel there is a shortage of savings, follow below tips.

TIP 03: USE 30 DAY RULE FOR SAVING MONEY

The 30-day rule is very useful in saving money. It allows you to save money by controlling impulse shopping.

The concept of 30 days is that you wait for 30 days before making any purchase that could result due to impulse shopping.

For example, you are walking through a cute bed cover, and you wanted to purchase it. Here, as per the 30-day rule, instead of purchasing it immediately, you need to make a note of that item and wait for the next 30 days.

Now, you have 30 days to decide whether or not that bed cover is necessary. If you want the bed cover, you purchase the bed cover after 30 days. Otherwise, you will forget about the bed cover and move on.

The 30 days rule is very much useful in saving money by restricting you from spending on purchases you didn't want at that moment.

If that particular item is needed and you want to purchase it, you'll still want to buy it after 30 days.

Otherwise, it is just the result of impulse shopping, leading you to an unnecessary expense. 

TIP 04: PRACTICE THE 24-HOUR RULE TO SAVE MONEY

The 24-hour rule is similar to the 30-day rule. If you think 30 days is long, you might feel like you want to purchase it.

In this case, you should at least try and wait for a day before purchasing it.

Sometimes, you may find that you do not require that item after all when you give it thought for some time.

With the advent of online shopping, we have the habit of adding to cart whatever we see.

Before you make any such impulse buy, make yourself wait for at least 24 hours. By the end of the 24 hours, you will likely find whether or not to purchase that item.

SAVE MONEY ON TRAVEL, FUEL, REPAIRS:

HOW TO SAVE MONEY ON TRAVEL, FUEL& REPAIRS - TIPS TO SAVE MONEY 2021

TIP 05: SAVE MONEY USING PUBLIC TRANSPORTATION

Traveling to and fro work takes up a significant portion of the income for most working people. Most of us prefer to use our own vehicle when going to work.

Using a public transportation facility wherever possible instead of your own vehicle, you can save quite a bit of money on maintenance of the vehicle, petrol/diesel, and save parking charges many times.

Prefer to take a home near to bus stops, metros, city railway stations that can connect you to work place at the shortest distance possible – This can help you save daily and in the long run.

You can even prefer to take accommodation near to your work place in a walkable distance. However, take a decision keeping in mind rentals too.

TIP 06: SAVE MONEY BY SHARING A RIDE

If you are uncomfortable considering public transport, you can think of sharing a ride with friend/colleague through Ola or Uber or on your own vehicle.

Sharing your ride reduces your transportation cost by saving fuel costs. This way you can significantly reduce the transportation costs on a daily basis.

Therefore, consider sharing a ride with someone else to work.

Check on multiple apps like Uber and Ola while booking a cab. Based on the taxi's demand at that particular route, the fare may differ in various apps. Reduce the transportation cost by choosing the cab that offers a better price for your way.

TIP 07: WAIK TO NEARBY PLACES – A FITNESS WAY TO SAVE MONEY

Most of us have the habit of using our vehicle whenever we step out of the house.

We do not consider if it is within walking distance or not. Just out of habit, you tend to ride your bikes or cars even to nearby places.

Taking a walk whenever and wherever possible. This not only saves up the fuel cost but also add a bit of exercise to your day.

If everyone starts following this tip, you might eliminate unwanted expenses and also eliminate causing unwanted pollution. 

TIP 08: BUY A FUEL-EFFICIENT VEHICLE

The vehicle you buy is very crucial. You can prefer a vehicle that gives you more mileage to save fuel cost over the vehicle's lifetime.

When you decide to purchase a vehicle for daily use, you can prefer a petrol vehicle instead of a diesel version, because petrol vehicles give you a higher mileage.

TIP 09: SERVICE VEHICLES AT REGULAR INTERVALS

Consider doing regular servicing for the vehicle at regular intervals and make sure to use manufacturer recommend engine oil.

TIP 10: AVOID SPILLAGE, LEAKAGES

Regularly check for fuel leakages and ensure if the tank cap has a good rubber cap/seal.

TIP 11: DRIVE SMOOTHLY, SENSIBLY AND MAINTAIN A CONSTANT SPEED

As per a survey, driving at a higher speed leads to more fuel consumption than driving at a constant speed in the range of 50 kmph to 60 kmph.

The less the brakes and accelerations, decelerations the less the fuel used; sense the road ahead.

Drive smoothly in traffic and avoid driving fast to overtake another vehicle.

TIP 12: MAKE SURE TO INFLATE TIRES

Did you know that adequately inflated tyres can help increase the fuel economy by over three percent?

Pound per Square Inch (PSI) is a measure of air pressure exerted on per square inch of area.

You can improve your vehicle's mileage by about 0.6% on average, up to 3% in some cases if you inflate your tyres to correct PSI.

Inflating the tyres to the correct pressure increases the life of the tyre and makes it last longer.

You can inflate your vehicle's tyres for free of cost, and with this proper maintenance, you can also save the fuel cost. Make sure to check tyres at least once a month.

TIP 13: BALANCE THE AIR CONDITIONING

What you do to stay comfort while driving a car? open windows or switch on Air conditioning?

A comfortable temperature is very much required for driving longer distances or in summer. But do you know that either method of achieving such ambience is wrong depending on speed of car?

Air conditioning uses fuel and other than hand opening windows also reduce Kilo meters per litre because of air resistance.

At low speeds consider opening windows and at high speeds consider switching on Air conditioning; Tipping point is 30 kmph.

TIP 14: AVOID UN NECESSARY BAGGAGE

The lighter the vehicle, the less the fuel consumption. Avoid un necessary baggage and consider filling fuel tank the required and not full in all cases.

Plan ahead of trip to fuel the tank at few confident destinations that comes your way.

Refer your vehicle manual and use the recommended fuel type for vehicle as that is tested by manufacturer and can give you an optimum benefit.

TIP 16: SWITCH OFF THE ENGINE AT SIGNALS

Ease off the accelerator early when you saw the red signal from a at a distance and Gently accelerate once the green signal is given.

Switching off the engine at the stop signal is also an efficient way of saving up fuel consumption for some vehicle engines. Check your vehicle manual before following this tip.

TIP 17: REFER OWNER’S MANUAL

Refer owner’s manual at least once after buying a vehicle to know various aspects of vehicle.

Manual can help you understanding Usage, Maintenance, Warranties and sometimes even help you understand a mechanic’s dishonesty.

Knowledge about vehicle can help you save a significant amount of money over the life of vehicle.

TIP 18: CHECK WARRANTY BEFORE APPROACHING A MECHANIC

Many a times we run to a mechanic without a knowledge about warranties. Most parts of vehicle have a limited or life time warranty.

You can get this information in vehicle manual or Invoice or on manufacturer’s website; be ware and save money.

TIP 19: DO LITTLE RESEARCH BEFORE GOING TO A MECHANIC

Do some research before approaching a mechanic about the problem you are facing. Listen to videos, read articles on google etc.,

This can help save your many against a high service cost, unnecessary charges and suggested repairs.

Also check if leaving old parts at service centre/mechanic after replacement with new parts can help you save some money out of expense; Most auto parts can be recycled and rebuilt. In some cases, even used parts can help you with requirement instead of going for new parts.

TIP 20: DEVELOP A GOOD RELATIONSHIP WITH A MECHANIC AROUND

It is not just business owners who should develop a good relation with customers. A vice versa can help benefit customer more.

Building a professional relationship with mechanic, can help you understand more about vehicle and also save some money.

TIP 21: SEE IF YOU CAN EXTEND WARRANTY OF PARTS

Whenever there is an option to extend warranties or warranty at a cost, consider taking them. It can save you one day.

TIP 22: SAVE MONEY ON VACATIONS

Vacations play a vital role in physical and mental well-being, help reduce stress, increase productivity, and give yourself space and time to get back to work with a clear mind.

We generally tend to spend more on entertainment & when we are happy, many times more than what is required to spend.

Here are a few tips to save money and get most out of money for vacations:

  • Travel during the off-season unless vacation is a season, festival-specific; you can save money and afford the things that are otherwise out of budget.
  • Don't wait for the day of vacation; consider booking tickets, accommodation in advance.
  • Look and compare for best offers, holiday packages on online booking platforms like OYO, Make my trip, Clear trip, Yatra, GOIBIBO, etc.,
  • Use credit cards that are customized for travel for the best offers, cash backs, and rewards.
  • Consider night travel in a sleeper class train or sleeper buses over day travel to save accommodation costs.
  • Stay in well-maintained hostels/PGs in case you plan for longer vacations. Start-ups like OYO-Life, Stanza living, Nest away, Zolo stays, Co-live, etc., offers budget-friendly accommodations.
  • Prefer bus-transportation or bike rental services like VOGO, Bounce in a city.
  • Generally, vendors at Tourist places offer products/services at higher prices; Negotiate for a better price.
  • Cut the cost of meals. Consider offers on Zomato, Swiggy, Uber eats, Pizza Hut, Dominos, and KFC. Prefer good Local small restaurants.
  • Get free accommodations in exchange for volunteering. You can explore such opportunities at world packers. Be careful while considering these options.

TIP 23: USE CREDIT CARDS CUSTOMIZED FOR TRAVEL TO SAVE MONEY

Travel credit cards are best for suitable for those who travel frequently; can be for business or leisure.

These credit cards offer a wide range of benefits — Welcome gifts, airport lounge access, air miles, travel insurance, zero liability on the lost card, accelerated benefits, Annual fee waivers, fuel surcharge fee waivers, Travel partner benefits, offers, discounts, and many more.

SAVE MONEY ON FOOD & GROCERIES:

From groceries shopping to dining out, we often spend too much that causes our expenses to swell.

Check out few tips to save money on food & groceries below.

HOW TO SAVE MONEY ON FOOD & GROCERIES - TIPS TO SAVE MONEY 2021

TIP 24: COOK & PACK YOUR FOOD FOR WORK

Cook & Pack your food, instead of buying it from the canteen.

Cooking your food for work might take up your time in the morning, but it is worth doing to save up your money daily.

This habit will not only help you save money, but it will also ensure that you follow a healthy diet.

TIP 25: REDUCE DINING OUT

Limit the number of times you plan to dine out.

Dining out can be fancy and joyful, but it will take away all your income.

Eating out is expensive because you will have to pay the taxes, and you may also want to tip the waiter. By cooking at home, you can save these unwanted expenses.

You need not entirely stop dining out, but have a check and limit the number of times you eat out.

TIP 26: CONSIDER ONLINE FOOD DELIVERY INSTEAD OF DINING OUT AT RESTAURANT

Since dining out creates unwanted expenses, if you crave outside food, you can consider ordering food to your house instead of going to a restaurant.

Get instant discounts and cash backs from ordering food online from food apps like Zomato, Swiggy, Uber eats, Pizza Hut, Dominos, and KFC.

Look for the available coupons and offers before you place your order.

Considering online food purchase over dining out at a restaurant is a wiser choice to save money.

TIP 27: ALWAYS SHOP GROCERIES WITH A LIST

Generally, when you go grocery shopping, you are likely to forget a few things you want to buy, or you might end up getting something that is not your immediate requirement.

This is where a list of requirements can help you.

Making a list is not always a favourite thing for everyone. But it is essential to have a check over unwanted purchase and it can even keep you away from surprises at checkout/billing area.

Set some budget along with making list and stick to it. Knowing food/grocery prices is necessary to budget accurately.

TIP 28: CONSIDER NON-PERISHABLES BUYING IN BULK

Buying in bulk is little cheaper and will allow you to save a certain amount of your money. Its good to plan one-week period meals, snacks and shop weekly once.

Purchase stock for the whole month instead of making a purchase every week.

Buying certain ingredients in large quantities reduces the unit price. Purchase your non-perishables and household in a large number and store them.  

TIP 29: LOOK FOR ONLINE OFFERS FOR GROCERY SHOPPING

There are many best grocery shops online, such as Amazon pantry, Big basket, Grofers, Jiomart, Fresh to home with better offers and deals.

By availing of these offers, you not only save money, but you can also save your time and the tension of going to the store.

MORE TIPS TO SAVE MONEY ON GROCERIES & FOOD

  • Shop with a full stomach and when you have enough energy. This helps to take a wise decision.
  • Shop in familiar stores particularly when you hurry; You can find what you need quickly as you are knowledgeable about the placement of items.
  • Organize your food/groceries storage; helps you know the requirement well.
  • Check expiry dates before purchasing.
  • When you have a stock of food/groceries, you may tend to eat more. Have control over intaking of food; helps you maintain good health too.
  • Consider buying non-food groceries like detergents, soaps, etc. for a month period to get more discounts.
  • Only buy what you require and within budget. Buy 1 get 1 is a good deal only when you need the other. Don’t just buy something and consume it since it is in stock.
  • Add only the required amount of ingredients to the dish. More quantity of items like Mirchi powder, sugar, salt can damage health; be cautious while adding ingredients.
  • In case you are shopping offline, it’s a good practice to count the totals with a calculator or you can ask your child to calculate the value of purchases. This can help you avoid surprises at the billing counter.
  • Never just go by-products displayed on handy-ease-look racks in shopping malls; sometimes they might soon expire or of high-cost products. Do your research before picking. Get to know the structure of the shop.   
  • Check the expiry of products before you go for deals.
  • Know your consumer rights for buying a product and returning a substandard product.
  • Consider the local farmers' market before buying from whole sellers or online.
  • Never pay for plastic bags. Carry your own bag to save money and the environment.
  • Invest in a cooker to motivate you to cook.
  • Use credit cards, payment wallets to reward you for payment.
  • If you don’t know cooking, learn to cook.
  • Sign up for store loyalty programs if any.
  • Consider cooking food using LPG gas over electricity to save power and money.

SAVE MONEY ON SHOPPING

Shopping for clothes can be fun, but it also leads to unnecessary expense at times.

If your closet is overflowing, it might lead to an empty wallet, which is why you need to have a check on impulsive purchases.

Here are a few tips to follow when you are shopping to save money.

HOW TO SAVE MONEY ON SHOPPING - TIPS TO SAVE MONEY 2021

TIP 30: STOP DOING EXCESSIVE/IMPULSIVE SHOPPING

No matter how difficult it is, no one is immune to making impulsive purchases from time to time. But the more you spend and give in, the harder it impacts on your financial life.

Spending more than you can afford and buying into the things which you don't need will tho of your financial stability.

Rather than craving impulses, one must make strategies that stand in the way of their compulsion to buy.

Always try making a list of what you really need and challenge yourself to stick to the list.

When you are on the edge of buying a costly item, always take time to decide whether you really need it and is it worthy of purchase?

Only shop with clear head never out of entertainment. Think of the last purchase you regretted.

TIP 31: AVOID SHOPPING FOR THE SAKE OF DEALS

Have you ever bought an extra piece of clothing besides what you needed? You sure would have.

For example, when you want to purchase a pair of jeans on Amazon, you see an offer, buy 2, get 1 free. You need only one pair, but you make an impulsive purchase by seeing the deal.

In this case, do you realize that you spend double the amount that you were supposed to spend?

Do not be victims of unwanted expense, and avoid these kinds of offers while doing online shopping.

TIP 32: COMPARE THE PRICES FROM DIFFERENT WEBSITES 

Compare the price of the same/similar product on multiple websites at the same time to get the best value for money.

Amazon, Flipkart, Myntra, Shop clues, Ajio, Tata cliq, Paytm mall, Decathlon, Pepper fry, First cry are some of the best market places in india.

TIP 33: CHECK FOR OFFERS AND CASHBACKS

Always check for coupons and offers before you check out. There may be various offers and cashback that could benefit you and allow you to save. 

Prefer those offers that can provide an immediate discount or cash backs over discount on later purchases. And check if you can combine more than one offer to at the same time.

TIP 34: USE PAYMENT WALLETS INSTEAD OF CASH ON DELIVERY

When you consider making payments through payments apps like Paytm, google pay, and phone pay; You may get rewards and additional discounts.

TIP 35: LOOK FOR FREE SHIPPING

While you are comparing the price from different sites, also verify the shipping charges.

Sometimes when a website charges a lesser price for the product, the shipping charges might be higher. Choose your shopping site wisely before you make a purchase. 

TIP 36: USE CREDIT CARDS CUSTOMIZED FOR SHOPPING

If you love online shopping, visit malls and departmental stores frequently, shopping credit cards are best suitable for you.

These credit cards offer numerous ongoing deals, cashback, discounts and, rewards every time you shop online or at departmental stores or malls.

MORE TIPS TO SAVE MONEY ON SHOPPING:

  • Subscribe to new letters of online / offline shopping malls to become aware of deals.
  • Check product reviews before making a purchase online.
  • Follow 30 days or 24-hour rule provided in general tips.
  • Do a google search for coupons, offers, discounts and cashbacks.
  • Buy discounted gift cards.
  • Shop when you are with pleasant mind.
  • Never shop with a hungry stomach.
  • Keep in mind your requirements before shopping like How frequently you use the item? Is it for temporary? Etc.,
  • Don’t shop with a doubt in mind. Leave the store.
  • Pick your shopping mate/s wisely. Select those who can give a honest opinion and wont pressure you into buying something.
  • Don’t go with cheap/super cheap unless for a temporary requirement.
  • See if your friends or shopping mates can share the deals like buy-one-get-one or for an extra discount etc.

SAVE MONEY ON ENTERTAINMENT

Entertainment has become a necessary part of everyone's life.

Many times, you may not realize how your spending on entertainment are slowly eating away your monthly income.

Here are some of the ways to deal with unwanted expenses on entertainment to save money.

HOW TO SAVE MONEY ON ENTERTAINMENT - 5 TIPS TO SAVE MONEY 2021

TIP 37: REDUCE CABLE BILL

With the arrival of online platforms like Amazon Prime, Netflix, Hotstar, etc., people rarely use their cable connections to watch any shows.

So you can eliminate cable connection if it is of no use. Or you can only subscribe to those channels that you are likely to watch. In this way, you can prevent unnecessary cable expenses and save a little money.

Still want to save more? Here comes the next tip.

TIP 38: SHARE YOUR MEMBERSHIPS

If you are using online entertainment platforms, you can share the memberships with your friends or relatives and split the membership cost. This way, you could limit the amount you spent on that particular platform. 

TIP 39: CANCEL UNWANTED SUBSCRIPTIONS

There are various newspapers and magazine apps with free subscriptions or with minimal charges for the subscription. You can stop your daily subscription over these, instead find alternatives that offer free subscriptions. 

TIP 40: MAKE ONLINE BOOKINGS

Instead of booking your movie tickets directly, you can always book the tickets through an online portal like Bookmyshow, where you can get instant discounts or cashback.

In this way, you can cut down the unwanted expenses and save up money whenever you watch a movie.

TIP 41: USE CREDIT CARDS CUSTOMIZED FOR ENTERTAINMENT

Because of the demand for entertainment by all age groups, credit card companies have come up with credit cards best suitable for entertainment purposes.

These credit cards especially helpful for movie lovers as most of the entertainment credit cards come with various offers, discounts, cashback, rewards, and sometimes even free tickets.

Banks has partnered with many entertainment companies such as Book My show, PVR to provide the best deals. You just need to use their credit while making payments to avail these offers.

SAVE MONEY ON ELECTRONICS, FURNITURE

In addition to shopping offers provided above, checkout some tips to save money specific to electronics, furniture.

HOW TO SAVE MONEY ON ELECTRONICS, FURNITURE - 6 TIPS TO SAVE MONEY 2021

TIP 42: INVEST IN QUALITY

When are of an intent to use electronics, furniture for longer duration, invest in quality?

It's worth doing some research to invest in quality; it helps you save cost in repairs, power, and serves you for a longer duration than cheaper ones.

TIP 43: KNOW YOUR REQUIREMENTS

Before going to shop electronics/furniture, know your requirements first like what capacity washing machine you need? How many seating capacity sofa do you require? What capacity motor do you need? What is your budget? etc.,

This can help you stay with in your requirement and within your budget.

TIP 44: LOOK FOR OFFERS & COUPONS

Checkout deals, offers, cashbacks, zero EMI conversion, etc., on major online and offline stores before deciding to purchase. Consider using credit cards to get rewarded for making purchases.

TIP 45: REPAIR INSTEAD OF REPLACING

Think twice before you replace any item. Do not replace the things that can be maintained.

If you have a problem with your mobile phones, see if it can be repaired instead of immediately replacing it with the new one.

Most things can last longer than how much you use them. Try to maintain and repair as much as you can.

You may not realize how much it can save you overall by merely extracting more use from everyday products.

TIP 46: SAVE MONEY ON REPAIRS

Refer to tips provided to save money on vehicle repairs above.

TIP 47: RENT INSTEAD OF BUYING FOR TEMPORARY USAGE:

When you are of an intent to use electronics or furniture for temporary purpose, consider renting instead of buying at a huge price; this can help you save money.

This technique also helps you when you doubt the quality of material you wish to purchase for long-term use. This way you can test the quality before buying though costs you some.

Many companies like Furlenco, Pepperfry, Rento mojo, Fab rento, grab on rent can you help you with this.

SAVE MONEY ON BANKING, DEBT, AND CREDIT CARDS

HOW TO SAVE MONEY ON BANKING, DEBT, CREDIT CARDS - TIPS TO SAVE MONEY 2021

TIP 48: CREATE A SAVINGS ACCOUNT

The best way to incorporate the habit of savings in your routine is to open a separate savings account, apart from your regular salary or professional account.

WHY A SAVINGS ACCOUNT?

The best way to incorporate the habit of savings in your routine is to open a separate savings account, apart from your regular salary or professional account

EASY TO BUILD A HABIT OF SAVING:

Many of you might want to start saving but do not know where to start. This is where you will need a Savings Account. It is easy to open a Savings Account and secure ways to invest your money.

INCOME FROM INTEREST:

Savings Account helps you to earn interest. If you keep cash idle, it isn't going to generate any income.

Whereas, if you deposit those cash in your Savings Account, it will not only keep your money safe, but it will also help you to gain income in the form of interest.

The interest rate on Savings Account varies for each bank. Therefore, verify the interest rate of the bank before you create an account. 

TIP 49: AVOID DEBTS:

Debt encourages to spend more than what you can afford and costs you in the form of interest.

Remember that opting for debt means you are mortgaging your future and keeping you away from reaching financial goals.

The more debt you accumulate, the more payments will be, and the less the savings and money to spend on other things; It may again lead to more debt.

Never get into debt for luxuries and don't spend more than what you can't afford.

TIP 50: PAY EMI AND CREDIT CARD DUES ON TIME

Never miss your EMI, Credit card dues as they cost you much in the form of penalties, high-cost interest, and other charges.

Missing an EMI or Credit card dues seriously affect your credit score. A low credit score indirectly costs more for other services and products.

You can consider making payments through CRED to get rewarded for making credit card dues.

However, when opt to pay through payment wallets, make sure to disable auto pay option directing to saving account and pay 3 days ahead of due date.

Because, these payment wallets takes some time to process to payment to banks and if it is after due date, you may become a victim of bounce charges in case you enabled Auto pay and don’t have enough balance on savings account.

TIP 51: MAINTAIN SUFFICIENT BALANCE FOR BILL PAYMENTS

Enabled auto debit for any utility payments?

It's a good practice, provided you maintain sufficient balance on your savings account to which you directed payments.

If the payment bounce, banks will charge you a terrific amount as bounce charges and processing charges.

Many times, companies to which you need to make a payment, continue to raise the debit requests until they receive the payment. This results in more bounce and process charges.

TIP 52: SAVE MONEY BY REFINANCING

Refinancing is the process of replacing your current loan with a new one that comes with low rate of interest or with payment terms.

If you are thinking about reducing your expense on your loans, refinancing is a good option.

Refinancing will reduce your existing loan's interest rate, which will help you lower your monthly payments and save money over the loan's life.

You could also change your loan payment from a 30-year loan to a 15-year loan. In this way, you can pay off your loan soon and reduce overall interest expense.

TIP 53: CONSOLIDATE THE DEBTS

Debt consolidation is a process of paying of multiple small loans by taking a big loan that comes with favourable interest rate or payment terms.

Usually, this technique is used to pay off the unsecured loans (10.5% to 45%) with secured loans as secured loans (8% to 24%) comes with low rate of interest from banks, other finance institutions compared to unsecured ones.

Unsecured loans can be credit card dues, consumer product EMIs, personal loans etc.,

In case you have a multiple credit card due, you can also think of transferring those balances to a single credit card that offers lower rate of interest. Many banks encourage this. This way you can almost reduce your rate of interest 3.5% per month to 0.75% to 1.5% Rate of interest.

This also reduces the burden of managing multiple loans; Simplify the payment process.

Check out more ways to manage debt.

TIP 54: INVEST IN HIGH YIELDING AVENUES WITH CALCULATED RISK

Keeping money idle in salary account or even in a savings bank account won’t help you generate a good return for your money.

Consider investing high yielding avenues such as mutual funds to get a good rate of return.

A high yielding avenue also comes with several risks compared to savings account – so take a decision by consulting a financial advisor to receive a better return with calculated risk.

In case you don’t want to take risks, consider depositing money into High-yield savings accounts or Fixed deposits.

HERE ARE SOME GENERAL TIPS FOR INVESTING:

  • Don’t keep all eggs into one basket. Diversify investment portfolio.
  • Choose investments after doing adequate research.
  • Don’t invest on what you don’t understand.
  • Don’t fall for high-returns schemes in short period.
  • Consider short- & long-term tax implications on investments and not just rate of return.
  • Review investments periodically.
  • Plan a right insurance along with right investment plan to avoid financial stress.

TIP 55: SAVE MONEY USING CREDIT CARDS:

Everybody likes to use credit cards since they provide you with the freedom to purchase whatever and whenever without thinking about the cash in hand.

However, we should use credit cards wisely. Otherwise, you might end up getting into debt. On the other hand, if you use it wisely, you can benefit from your credit card and save money.

SAVE MONEY USING REWARD POINTS:

Credit card award Reward points to encourage the user to make credit card purchases. These reward points benefit the user with vouchers, cashback on later purchases, etc.

Most of the credit cards offer reward points for every transaction you make using the card.

You can redeem the reward points by which you can also make several other purchases like online shopping, booking train, flight tickets, paying for dinner, etc. 

In this way, these rewards points help you to save money subsequently.

SAVE MONEY FROM CASHBACKS:

Like reward points, credit cards also allow you to gain cashback. Cashbacks are one of the easiest ways to save money while using a credit card.

Many credit cards offer cashback on various purchases. Making a credit card transaction will allow you to get a cashback ranging from 5% to 20%.

For example, you can book your movie tickets using your credit card instead of other, payment modes.

SAVE MONEY ON MEDICAL & FITNESS

HOW TO SAVE MONEY ON MEDICAL AND FITNESS - 5 TIPS TO SAVE MONEY 2021

TIP 56: EXCERCISE & MEDITATE – A HEALTHY WAY TO SAVE MONEY

A regular exercise, meditation can keep you away from stress, diseases which help you save indirectly entire life and keep you financially stable from un expected cash outflows because of diseases.

It also keeps you active, productive throughout the day, which helps you even get promotions, increments at work place or help you keep effective effort to earn more in case you are into business.

If you can’t be able to do it on your own, there are many fitness communities out there almost in everywhere. Join them to keep you motivated.

You can even consider Fitness companies like Cult fit. In case such option is not available look for Gyms, Dance or Yoga or any kind of fitness classes around your area in which you are interested in.

TIP 57: GO FOR REGULAR HEALTH CHECK UPS

As you all know, prevention is better than cure. Becoming aware of health can you help you keep away from critical illnesses. This you could save a lot & you and your family stays financially secured.

Many hospitals near your area can help you with this and you can even consider companies like Pharm easy, Practo, 1 mg for better check-ups.

TIP 58: CONSIDER PAYING UPFRONT

Vendors in fitness industry consider giving a huge discount if you consider paying upfront. So, look for such offers in case you wanted to regular services from them.

Keep in mind that, this is also an industry where people subscribe for long term packs with so much initial motivation and fail to take services afterwards because here our body need to work to consume services😊. However, you can confidently go for long term regular health check-ups.

TIP 59: LOOK FOR OFFERS AND COUPONS

When you are planning to consult a doctor or subscribing for a fitness coaching look for deals offers and cash backs to save some bucks.

Payment wallets and many fitness companies like Pharm easy, Practo, Cult Fit, 1 mg offer a good discounts and deals.

TIP 60: USE CREDIT CARDS CUSTOMIZED FOR MEDICAL & FITNESS

Many credit card companies are offering good deals and discounts on medical bills, fitness subscriptions and also comes with free medical, accidental insurance.

These credit cards reward you for paying bills with credit cards in the form of reward points, offers, discounts and cashbacks. And even care you with free insurance.

SAVE MONEY ON UTILITY BILLS:

HOW TO SAVE MONEY ON UTILITIES - TIPS TO SAVE MONEY 2021

TIP 61: USE SOLAR ENERGY

Have some space on the terrace or yard? You can consider installing solar panels to save power bills and protect the environment.

Initial cost purchasing solar panel is fairly high but they help you reduce you reduce power consumption daily and benefit you so much over the life of panels.

Usually, reliable solar panel vendors offer 20-25 years warranty. So, it’s worth spending for such high life time. Inverter is the only part that needs to be changed for every 5 to 10 years and some maintenance is required for cables to ensure they are working at maximum efficiency.

However, keep in mind that it is smarter to just use to solar energy during the day time instead of storing it for night requirements/future requirements as energy storage devices cost you so high.

TIP 62: USE VENTILATION / SUN LIGHT

Keep windows and ventilators open to allow sunlight into home during the day time.

This also help you send hot air out and cool air to flow inward which can feel you comfortable and also saves the power; particularly during early morning and night times.

TIP 63: INSTALL ENERGY SAVING ELECTRONICS / DEVICES:

Think of installing such devices which can consume less electricity. We are not suggesting you to compromise on your requirements, only suggesting you to look for such devices which can consume less power according to your requirements.

For example:

  1. Compact Fluorescent Lamps (CFL) and Light Emitting Diodes (LED) consume lesser amounts of electricity than traditional bulbs and tube lights. Switch to CFLs, or if possible, to LEDs instead of using the regular 1000-watt light bulb in your home. The CFL and the LED bulbs are about four times more energy-efficient than incandescent bulbs. 
  2. When you are single, you don’t require a 10 kg capacity washing machine. Going for a low capacity washing machine to save money.

Initially, these energy-efficient electronics might seem to cost more than other alternatives, but they have a much longer life and use far less electricity.

These devices save power, money and environment too.

TIP 64: UNPLUG THE UNUSED ELECTRONIC DEVICES

You may think that electronic gadgets and devices consume only a small amount of electricity.

However, with the number of devices and electronic appliances at your house, you may not realize how quickly it can add up your energy bill.

So, remember to unplug or switch off when not in use, like switching off your mobile chargers, television, washing machine, etc.

When not in use, it is better to unplug the device from the socket rather than just switching it off.

This way, you eliminate unnecessary electricity used and can save from your energy bill.

TIP 65: TURN OFF THE LIGHTS AND FANS

One common thing which most of us do is, forgetting to turn off your lights and fans whenever you leave your rooms.

Initially, it may not seem to cost you, but it sure does cost money over time.

You can also consider not using the lights when there is enough natural sunlight.

To keep your energy bill down and to save as much as you can, remember to turn off the lights and fans any time you leave your house, even when you go from one room to another.  

TIP 66: MAKE YOUR COMPUTER SLEEP

Put your computers or laptop to sleep whenever you leave your desk to reduce power usage and save money.

TIP 67: SAVE MONEY ON RENT:

Staying a high rental area? You can think of shifting to a low rental area to save some money every month. Sometimes you can even afford an awesome house, better facilities within your budget in low rent areas.

However, keep in mind to & fro travel costs from home to the workplace while making a decision.

TIP 68: SAVE MONEY ON MOBILE/WIFI CHARGES:

For most people, high-speed internet connectivity is a significant monthly expense. Wifi charges might vary based on the location but on average, people pay around $25-$70 for high-speed internet every month.

We need good internet connectivity more than ever because of the prevailing work from home situation. But you can use these creative ways to reduce your internet bill

  • Shop around and search for providers with better pricing
  • Buy your own modem or router instead of renting.
  • Take bundles services like Tv/ internet packs as it helps you save quite a lot. Also, ask your provider about the discount packs.
  • Try negotiating your bill with the service provider.

TIP 69: SAVE MONEY ON BILL PAYMENTS:

Not just about making strategies to reduce the bills, we can also make savings while paying bills.

Most of the online payment apps like Phonepe, Google pay, Paytm offer cashback on paying bills online.

You can use these platforms to view your bill online and make timely payments, along with getting discounts and cashback offers.

Along with these, most of the banks like HDFC, ICICI also discounts if you make payment using their credit or debit cards.

SAVE MONEY ON INCOME TAX:

Everyone likes to earn more, but not really in favour of paying income taxes.

Here is good news for you all! There are certain sections under which you can save your income tax.

Understanding these tax saving options is very important to save your money.

Here are the different sections of the Income Tax Act and the respective investment options by which you can save your taxes.

TIP 70: TAX SAVING OPTIONS:

SECTION 80C:

Under this section, you have multiple investments and expenses options to claim deductions up to a limit of Rs. 1.5 lakh in one financial year.

Here are the few investment options that are available under section 80C of the Income Tax Act.

EQUITY LINKED SAVINGS SCEHEME:

Equity Linked Savings Schemes are mutual fund investment schemes that will help you in saving the income tax.

ELSS funds come with a lock-in period of 3 years. You can easily invest in ELSS in the same way that you invest in any other mutual fund.

Investing in ELSS schemes will help you avail tax exemption of the invested amount up to Rs' limit. 150,000 from your annual taxable income under Section 80C. 

PUBLIC PROVIDENT FUND(PPF):

Public provident funds come with multiple investor-friendly features with various benefits.

PPF comes with a lock-in period of 15 years, before which you cannot withdraw the funds entirely.

Under the PPF scheme, you can invest a minimum of Rs. 500 and a maximum of Rs. 1.5 Lakh annually.

Under section 80C, you can claim the entire investment in a PPF without tax. However, keep in mind that the total amount you can invest in one financial year cannot exceed Rs. 1.5 Lakh.

EMPLOYEES' PROVIDENT FUND (EPF): 

EPF is a savings scheme directed towards the salaried-class to develop their habit of saving money to build a considerable retirement corpus.

An employee's contribution towards their PF account is considered eligible for tax exemption under section 80C.

Earnings up to Rs. 1.5 lakh generated through the EPF scheme are exempt from tax.

Various other sections under the Income Tax Act that deals with saving income tax include, Section 80D, Section 80CCD, Section 80E, Section 80EE, Section 80G, Section 80 GG, Section 24, Section 10(13A), etc.

Availing home loans, buying a health insurance policy, opting for the life insurance policy, making donations to charity, etc., are few other tax-saving options. 

You may not realize that you might be paying more tax than what you are liable to pay.

That is why you need to be aware of specific investments mentioned above to benefit from a tax reduction.

Investing in these options will reduce the amount of tax calculated and reduce the amount of tax you owe.

Before selecting a tax-saving instrument, it is essential to know how it works — the lock-in period, liquidity, and returns. It will be of no use if it doesn't suit your individual needs.

It is necessary to stay updated about the latest tax-saving provisions to choose the correct investment option to reduce your tax burden significantly.

PROTECT HARD EARNED MONEY COVERING UNCERTAINITIES

TIP 71: PROTECT WITH INSURANCE

Insurance is essential to protect you from unexpected life, Health risks, and protect your tangible assets like homes, cars, etc.

Insurance is a must because it provides you with financial security and helps you to be prepared for unexpected situations; it reduces financial stress over unexpected losses.

Everyone is uncertain of what's going to happen the next moment.

Unexpected disasters such as death or any severe illness might lead to the family's emotional and financial distress.

Suppose you have life insurance or any health insurance policy. In that case, you will not end up losing all of your savings. Insurance policies will protect you from losing all of your hard-earned money.

In any such unexpected situation, your financial stress could be reduced. Having an insurance policy not only helps you with such uncertainties, but it also helps you develop the habit of saving.

Having adequate Insurance for a proper cause is very important to avoid financial stress.

TIPS TO SAVE MONEY ON INSURANCE:

BUNDLE YOUR INSURANCE POLICIES:

Few insurance companies will give you a discount when you keep multiple policies under their company.

If you want to insure your car as well as your home, or if your family has two or more cars, bundling up the policy is a better way to save off your insurance bill.

CONSIDER PAYING PREMIUM UPFRONT:

Paying an annual premium for a policy helps you save when compared to paying it monthly. Many companies offer you discounts for making payment in full for a certain period; consider this option only when you don't have an alternate mode to invest money or when money is idle.

Check out the types of insurances which can protect you from uncertainities.

TIP 72: PROTECT AGAINST INFLATION:

Inflation erodes the value of money over time. So we can not ignore the impact of inflation on our savings.

Inflation is a natural part of the life. In a nutshell, Inflation leads to reduced purchasing power  due to a raise in the prices of goods and services. With the volatile markets, the main question here is how to save against inflation? Here are some ways you can stay ahead of inflation.

  • Try investing in equity markets for a longer time period, which gives you a higher percentage of returns when compared to the inflation percentage,
  • Invest in assets like Gold and Realestate because when other commodities increase, gold prices also shoot up. Investing in gold helps in hedging against your poorly performing investments.
  • Investing in Mutual funds through a Systematic investment plan(SIP) where compounding helps you combat the inflation
  • Always keep your portfolio refined from time to time by keeping in mind your long term goals.

SUMMARY:

It doesn't matter how much you earn. All that matters is how you spend the money and how much effort you take to save the money you make.

The concept of ‘saving money' is easier said than done.

However, it is essential to develop the habit of saving money slowly.

Even if you manage to practice a few of these money-saving tips and make it a habit, you will be already on the path of saving a reasonable amount of money.

In case the above tips can't help you save the required money for desired goals, you shouid think of additional income sources.

Do you have any good money saving tip? comment below.

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