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Old 6th February 2020, 23:08   #1
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Default Ways you save the penny!

In this day and age where inflation, lifestyle, bills etc eat into your savings, how do you save your buck?
I usually try and save on transport by taking my cycle to distances that are 5 kms away(thanks to Bangalore traffic even that is tough). I also take the bus sometimes, though it takes me a lot of time, I'd rather spend 20 bucks on a 10km ride home than ₹100+.

How about you guys?
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Old 6th February 2020, 23:25   #2
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Originally Posted by Sreesh1009 View Post
How about you guys?
Cheers
Team BHPian's Guide to SAVE Money:Rule #1

Thou shalt scour the T-bhp Classifieds/OLX/Carwale for pre-worshipped bargains on Teutonic Germans and Exotic Italians and feel good about the fact that your new purchase 'saved' you some money.

(Never mind if you didn't have the use for another car in the first place).

Last edited by octane1002 : 6th February 2020 at 23:31.
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Old 6th February 2020, 23:35   #3
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Default re: Ways you save the penny!

I'm only 16, so don't have a license yet, to commute on a motorcycle.

I've started to use Rapido Instead of an auto, for the past 3 months and it has been working very well, to save the penny. Rapido usually costs 50 or 60% of the auto fare, and to add to that, they have these coupons that reduce the price further. For example, the auto fare from my college to home is 250 bucks, whereas rapido takes me for a 100 rupees Have saved a lot of cash by using rapido to commute. It's faster, cheaper and I don't require an auto/cab for a single person travelling. I also use the bus sometimes, although the commute time increase by two times.

Also, as you said, I've been using my cycle to commute for any distance less than 4 or 5 km, and to which I can take shorter routes and avoid main roads.

Last edited by Prathiiik : 6th February 2020 at 23:36.
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Old 6th February 2020, 23:47   #4
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Default re: Ways you save the penny!

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Originally Posted by Sreesh1009 View Post
In this day and age where inflation, lifestyle, bills etc eat into your savings, how do you save your buck?
First thing that you do is track every expense that you make for at least 3 months. Then you classify them according to unavoidable, scope for reduction and frivolous. This will give you an idea on where you are currently spending money. For e.g. in my case, I switched from using the car to AC bus when possible. But that doesn't mean I will take the train and fight it out in the crowds and end up actually tired by the time I reach office. I also realised that I spent a lot of money on eating out - e.g. a vada pav here and there, or an Energee (flavoured milk) on the way home, etc. I cut down all these and saw a significant saving. On the plus side, this gave me a chance to improve my cooking skills too .

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How about you guys?
But, at the same time, I spend an awful lot of money on fuel. I have been consistently trying to reduce it, but as a compromise I have resolved to avoid taking the car for commutes. I will instead spend on weekend drives / other highway trips where I get money FE and enjoy more as well.

Also, have a goal in mind and work towards it - In my first job, I decided to take at least one 1-day road trip every month and a long one every year. I'm happy to say I succeeded in those by saving up enough for this reason. After all, there is no point in saving, if you don't spend on something that you love.
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Old 7th February 2020, 07:22   #5
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What I've found more useful is to think in terms of investment and returns than savings alone per se.

The perspective of investment allows one (certainly allowed me) to think both long-term and short-term. This in terms brings out a better balance in life where one has space for some indulgence as well as thriftiness where need be.

However, the investments have to be well thought out and not based on hearsay! Meaning, for instance, you would not ask others if this or that mutual funds or stock is a good buy. This allows the mind to be thoughtful and discriminate intelligently.

With that background you might find few things like -

1) It may become necessary to do more job hopping in the initial career years till the time the kids may be 4/5 yrs or so. Job hopping allows the necessary increment in income.

2) Job hopping would not be random but will go with skills learning and mastering - enabling a better thought out jumps.

3) With return on investment in mind, your savings will automatically optimize - unnecessary eating outs get much reduced; car pooling (quickrides) become more appealing; judicious use of two-wheeler/walking/cycling/public transport; no more buyers remorse; etc etc.

4) Fringe benefits adding up - you'll find road rage, childish driving antics, toxic people in friends and family, etc are unnecessary drain that have much investment and negative returns. They will all get weeded out. No extra effort necessary.

5) Investment will have well rounded meaning for every resource - time, money, emotion, food and health, relationships, etc.

Central to all of it is to keep learning and evaluating with an open mind.
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Old 7th February 2020, 10:13   #6
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Default re: Ways you save the penny!

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Originally Posted by Sreesh1009 View Post
How about you guys?
Here's a thread on a related topic:

https://www.team-bhp.com/forum/shift...s-savings.html (Are most of us living on the edge? Let's talk about income, expenses & savings)

Cheers,
Vikram

Last edited by comfortablynumb : 7th February 2020 at 10:15.
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Old 7th February 2020, 11:05   #7
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Default re: Ways you save the penny!

Few points which I could think of (in no particular order):

1. Avoid eating out or ordering food from outside. This would be good for your wallet as well as for your health.

2. Avoid going to multiplexes. Instead, subscribe to streaming services for watching movies at the comfort of your home.

3. Try to reduce the expenditure of your commute by moving closer to your office / car-pooling / using public transport.

4. Avoid going to the gym (unless you are into serious body building). Try to change your lifestyle to include exercise within your daily routine. There as many ways to burn calories, which are practically free of cost - like jogging, climbing the stairs, washing the car, doing household chores like mopping etc. Also, you could perform lot of serious exercises using just your body weight or some simple exercise equipment like dumb-bells or kettle-bells.

5. Socialize with like minded people, who also believe in saving money and living healthy. Otherwise you would be compelled to visit restaurants/pubs because of peer-pressure.

6. Avoid packaged food & drinks. This includes soft drinks, packaged juices, wafers, munchies etc. Again, this would be good for your wallet as well as for your health.

7. Avoid spending excessively on gadgets because of peer-pressure. Buy what you need / like, and retain it for as long as possible.

8. Buy pre-owned cars - self explanatory. Also, don't buy a big car just because it is cheap to buy. Keep in mind the extra expenditure for fuel, maintenance and repair.

9. If buying a new car, buy the best car which you can afford and retain it for as long as possible. Buy in the end of the calendar year to avail maximum discount.

10. Buy good quality clothing, but don't go behind the luxury brands. Buy during the discount sales as far as possible.

11. Inculcate good financial and social habits in your kids too. Don't give in to all of their demands. Make them earn their rewards and make them share their belongings with siblings and friends.

Rohan
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Old 7th February 2020, 11:09   #8
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Default re: Ways you save the penny!

I learned this simple formula very very late

Money saved > Money earned
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Old 7th February 2020, 11:15   #9
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Default re: Ways you save the penny!

Do a rough math of the month's expenditure on the salary day. Keep a little over that figure in your savings account and transfer the rest towards your investment/ savings. In short, the following should give the idea what I am saying:

Wrong: Income-Expenditure = Savings;
Right: Income-Savings= Expenditure

It's OK to splurge on yourself & your family once in a while, but to be able to keep up; you also need savings. Even mere savings cannot get you through, you need to invest those savings into good avenues.

If you have to shop, best to do when good genuine discounts are on. Some items of daily use, esp cosmetics are a lot cheaper online than your grocery shops. On the other hand, food items like oil, flour, rice etc are cheaper at nearby shops than online. Clean your car yourself rather than giving it for detailing/professional wash everytime. Walk to nearby places you can rather than taking your vehicle out everytime. Saves money and good for your health too. Avoid junk food at all costs. Benefits are more than just of money.

Regards,
Saket

Last edited by saket77 : 7th February 2020 at 11:23.
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Old 7th February 2020, 17:09   #10
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Default Re: Ways you save the penny!

I have to sheepishly admit that I'm not the "save a penny" kind of personality at all. My family thinks I'm a big spendthrift.

That being said:

- I work hard + smart and am able to invest / save a majority of my income.

- If I buy something, I usually keep it for long. Be it cars, laptops, phones, watches etc.

- I enjoy a meal at a simple restaurant as much as a 5-star. No fuss & no hang-ups.

- I don't waste anything.

- My fixed costs are negligible (no rent / loans / EMIs).

End of the day, you only live once, although of course, you have to balance things out. I'd like to think I do a fair job of it without compromising on lifestyle at all.
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Old 7th February 2020, 18:22   #11
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Default Re: Ways you save the penny!

Quote:
Originally Posted by rohan_iitr View Post
4. Avoid going to the gym (unless you are into serious body building).
On the contrary, I have saved tons of money by going to the gym I used to drink a lot and eat out regularly. However going to gym regularly made me kick drinks and avoid expensive dinner. The people in the gym are my new health buddies while I eliminated almost all drinking buddies. If I had not opted to join the gym, I would have destroyed my life.
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Old 7th February 2020, 20:00   #12
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Default Re: Ways you save the penny!

Sure shot way - create a liability.

For example, buy an expensive house at a prime location on loan and every month the bulk of your salary would go into EMI. For the rest of the month you would be penny pinching to last till the next salary day.
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Old 7th February 2020, 21:15   #13
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Default Re: Ways you save the penny!

Step 1: Collect Data. Note down every single rupee you spend. I have been maintaining an Excel sheet since the year 2002, where I have diligently recorded all my transactions. Even if it is a Rs. 50 haircut I got in 2002.

Ways you save the penny!-scan.jpg

Step 2: Organize Data. Classify your expenses under different heads like:

- Vehicle expenses (fuel, taxis, insurance, maintenance)
- Interest expenses (car loan, home loan, personal loan etc)
- Utilities (phone bill, internet bill, electricity bill, cable bill etc)
- Groceries, Fruits & Vegetables
- Household Items (Furniture, Utensils, Electronic Items etc)
- Fashion & Entertainment (shoes, clothes, belt, movies etc)
- Kids education (school fees, books etc)
- Travel (hotels, flight, expenses at holiday location etc)

Step 3: Figure out how to cut expenses under each head. Penny pinching examples:

- Spending Rs. 1,500 on ACT Broadband, but using only 50% of data? Opt for a lower plan. Even Rs. 300 saved here adds up to Rs. 3,600 per year.
- Spending Rs. 500 on cable, Rs. 1200 on cell network (yours + spouse)? Get rid of channels you don't need. Opt for 'couple plans' with your cell network. That helps you save another Rs. 3,000 per year.
- Avoid going to large grocery stores. You will be tempted to buy stuff you don't need. Instead, write down what you need and go to a neighborhood Kirana store.
- If you don't want to do that and still go to a large grocery store, don't blindly buy the brands you have been buying. Look for cheaper options. Many of the items we buy in a large grocery store is imported from Thailand or some other countries. Made-in-India lesser known brands can be 50% cheaper.

Do not hesitate to cut a Rs. 100 expense. It all adds up to a tidy sum over a period of 12 months. There is no limit to cutting costs - without significantly affecting your lifestyle. All you need to do however is know where your money is going.

Last edited by SmartCat : 7th February 2020 at 21:24.
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Old 9th February 2020, 10:39   #14
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Default Re: Ways you save the penny!

I would say it is more appropriate to think about how to generate more money than worry about how to save. Most of us think only about saving and forget about how to invest, and earn more. I am not negating the importance of saving, but you achieve more if you slightly change your perspective.
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Old 9th February 2020, 10:51   #15
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Default Re: Ways you save the penny!

3 new habits I’m developing:
1. Cook more, eat less outside(hard as a bachelor)
2. Cancel Amazon prime and don’t use food delivery apps. Not having prime gives me the time to contemplate the purchase and also forces me to drive to neighborhood store.
3. Using more cash to pay for day to day transactions. I feel (it is psychological) money physically getting out of your hand makes you more conscious about spending than inserting that chip card or tapping in that mobile app.

Last edited by landcruiser123 : 9th February 2020 at 10:58.
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