An average Indian between the ages of 18 and 35 spends approximately INR 7000 on eating outside food. 30% of gym memberships go unused, and more than 45 litres of water is wasted daily. Indians at large are callous about their spending and let's face it, they're pretty unaware about investing as well.
Although there are ways to save money and no, you do not have to make astronomical sacrifices to lead a slightly prudent life.
Ideally, the expenses, investing and spending should be at a 50:20:30 ratio. Expenses should include inevitable expenses like rent, investing should be inclusive of money parked in instruments that will fulfill your financial goals and spending should include the leisurely activities that you pursue.
In the blog below, I will explain to you 9 simple things that you can follow which will save you a huge chunk of money.
Let's get started!
9 Ways A Salaried Individual Can Save Money
Below are 10 simple ways to start saving.
- Cook In The House, In The House Cook: Believe it or not, the food is one of the biggest reasons most of our wallets are empty. Most restaurants market their food to be unique, but deep down, you know the food is expensive and you could whip up something better in a couple of cases.
The digital age can transform you into an indoor chef. Experiment with cuisines and buy good quality ingredients. It's healthier and you could save oodles of money.
- Sticking To Gym Memberships: We know when gyms make a horde of money. But after the 'new year' hangover subsides, we're back to our comfortable pyjamas, Netflix and chilling.
But what about the wad of cash we just spent? Yes, we all live busy lives and it is a task to adjust work and fitness but think about the monetary loss you subject yourself to. Most gyms take a fee of INR 10,000 on average.
Therefore, go to the gym only if you are determined to complete the course.
- Carpooling: Carpooling is famous in countries like Japan and is slowly gaining precedence in India. Many companies provide cab facilities to their employees for a nominal fee.
For those of you who do not have the option to avail transport, you can always pool in with someone who lives near your house or use a shared taxi. Or even use the public transport. If you think it's hard to do it every day, you can try it 3 days a week, maybe?
Imagine how much money you would save, which would be a boon to the environment.
- Be Mindful Of Your Grocery Bill: When you enter a supermarket, you may get carried away and buy things you may not need.
The neat kiosks of chocolates, delicious products, or new varieties of vegetables can get you to overspend. But hey, these are retail marketing gimmicks.
The chocolates kept next to the billing counter are just a way to buy the sweet treats while you're billing impulsively. You can afford to do it occasionally, but you can save significantly if you're mindful about your grocery budget!
- Shop During Discounts: The internet brings us a world of possibilities. There's always an online store or an outlet with a clearance, festival, or New Year's sale. Often, you will find decent products with heavy discounts.
Make use of the opportunity; you can spend less. For example, if your birthday is in June, you might as well grab the opportunity to buy that perfect shirt during the New Year sale!
- Car And Health Insurance: You must consider why these insurances are on the list. After all, 'you' will have to pay an amount to avail them. However, uncertainty is the only certain thing in life and if you do get sick or your car meets with an accident, the amount you would have to shell out would be off the roof.
It's a better option to avail yourself of these two insurances from the beginning to prepare you for unforeseen situations.
- Your House Is A Money-Wasting Fountain: We're not even joking.
As mentioned above, an average Indian household wastes almost 45-50 litres of water daily. We always complain about the electricity bill being extremely high and one of the reasons is because we are callous.
Think about how often you have switched the light and air conditioner on and left for work. These actions are not just heavy on your wallet but also the environment.
You can also reduce your telephone bill by availing of family plans, which you can share with your family members or friends. There are plans with network providers that range from INR 999 (unlimited talk time) for three phone numbers. These plans are winners. Think about subscribing to them.
- If You Don't Need It, Sell It: You have a lot of things lying around that you don't particularly need, like extra clothes you haven't worn or even gadgets.
These items are in relatively good condition, but you don't need them. Why not sell them and make an extra buck? Various online portals like Quikr and even Amazon accept second-hand items for resale.
You could even donate retail items. You might not earn money, but you can make some people happy.
- Invest In Tax Saving Instruments: Tax takes away a substantially large chunk of a salaried individual's savings. But now, there are various tax-saving instruments through which you can save a portion of your tax, like NSC (Section 80 C) and PPF (Section 80 C), through which you can save tax.
Normally, you can invest via leasing if you want to get tax benefits from investing in a medium. It is an upcoming avenue in India and provides stable returns
Wrapping It Up
Above are just a few things you can do to streamline your budget, but in reality, there are so many things you can do to save up. But that doesn't mean you don't have fun. Yes, you should go on trips, party, and have a good time with family and friends. But in general, try to be cautious of your spending!
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