Do you think you have run out of ideas on how to save money, and there is no way that you can save more? By changing a few spending habits, you can make the most of your income.
Here are some lifehacks that will lead you onto the path of greater savings:
Adopt cash-only policy
Plastic money - like debit and credit cards - is easy to use, and may just be the tap from where your hard earned money flows away. With e-commerce companies giving attractive deals every now and then, you decide on the last thing to be bought for a month and yet end up spending some more.
Here's what you can do.
Remove your card details from any online shipping sites that you use and put your cards away in a drawer or some other safe place where you will not be tempted to touch them. Try to live on cash-only at least for two weeks. If your budget still permits, use cash to pay everything from your daily expenses and shopping. Do this for a period of at least two weeks to one month (if you can exercise this restraint for that long!) and you will be surprised on the amount of money you will have saved by the end of the month. The cash you save can be used to pay back the outstanding amount on your credit card. Paying outstanding balances in full is also a good way of maintaining a good Cibil score, so make sure you give this topmost priority.
Ignore the extra cash
Rare as these occasions might be, you are likely to a get a windfall sometimes in the form of a bonus - a raise that comes with a promotion or a tax refund. Instead of splurging it on the new gadget you have been eyeing, ignore it completely and put it away right then. If you have a substantial amount pending on your credit card or your emergency fund is not quite replenished, use the extra money to take care of these issues right away. The feeling that your debt pile is under control or you have enough funds to fall back on in case of a sudden unpleasant change in life is a much better feeling than basking in the glow of a new gadget!
Wait up before the big purchase
So have you been eyeing the latest smartphone, a sleek laptop or an LED TV? If you are thinking about making one such big purchase, you should wait up for at least seven days before you do it. Use this time to take a look at your financial plan and whether or not you are on track. Ask yourself: 'What will be impact of such a purchase on my finances?' If you are really honest, chances are that you will find out that your financial security is a better option than a fancy TV or smartphone.
Go on autopilot mode
Thanks to the advances in technology it is easy to put your savings on autopilot mode. This means that you can use the electronic clearing system (ECS) to direct your money into any investment vehicle, whether it is an MF scheme, an emergency fund or a pension scheme. Not only it is easy to track your investments this way, it will also give you the mental peace of having saved automatically each month without making any extra effort.
By putting these methods to a good use you will realise that over time, you have not only saved a greater amount of money, but also your debt pile is under control. All of these habits will also help you maintain a good Cibil score, which can be your ticket to access credit when you are in need of it. These may not be the most pleasant things to do - and may be painful too at times - but if you do manage to implement them, you will surely have created wealth over long term.
Disclaimer: All information in this article has been provided by Creditvidya.com and NDTV Profit is not responsible for the accuracy and completeness of the same.