It’s easy to say – save money. But it is not always as easy to actually save money as giving advice to save money is! Without much conscious efforts in budgeting and understanding your spends, you are unlikely to save much. Or worse, you may fall into a debt trap Below are 10 practical tips for youngsters to save money.
These tips to save money can be used in day to day lives. While the basics of avoiding debt, budgeting and avoiding lifestyle traps remain some steps you can take to save money in your day to day life can always help!
(Here I have assumed a youngster, probably in 20s. However, this may be applicable to people outside this age group too. )
- Automate your savings & investing. Put aside a small chunk of money, however small it be as soon as you get your salary. Ideally, this should be invested. Some of the options are mutual funds (via lumpsum or SIP), equities (of you understand them) or bank deposits or PPF. There are lot of avenues to save and invest. Do your research (Thank you Google!) and choose what suits you.
- Avoid frequent eating out if possible. Better still, learn at least some cooking. You can save quite some money and probably eat a big healthier too. And this can be fun too!
- Used stuff is not necessarily bad. Second hand car is not bad, if you really need to buy one. Or visit a used furniture shop to get bargain prices, if you are looking to get some stuff for your house.
- Hunt for deals and cashbacks. Use cashback sites or credit cards which offer cashbacks. Make use of affiliates (e.g. Cashkaro). A caveat though – Don’t get carried away or buy unnecessary stuff just for the sake of cashback. Even if you get $10 cash back on a $50 purchase, you are spending $40!
- Reduce subscriptions – You probably need very few subscriptions of the range of choices available. If you are, for instance, using only one of Netflix or Cable TV most of the time, cancel the other subscription.
- Avoid impulse buying. It’s easy to say this, but not always easy to implement! One way to do it is going with a shopping list – be it grocery or apparels or anything. For higher ticket purchase, wait for some time (a week’s wait should be fine!) before actually finalizing the purchase. And buy only of you can afford to buy using your cash/ savings.
- Cultivate healthy habits. Try to eat healthy food, Reduce (better still, avoid altogether) smoking and alcohol. You don’t potentially just save on immediate expenses but also potential health issues that may arrive.
- Avoid wasting food – Prepare or order only as much as needed or be OK with eating with eating leftover from dinner for next day lunch. Use things well before their expiry date as far as possible. It can help you prevent throwing away unused stuff. You’ll be surprised how much food is actually wasted!
- Use public transport. Bus and train can be lot cost effective than car or cabs. Use carpool if feasible. If you need to go nearby, walking or cycling is a good option. It’s healthy and economical.
- Avoid chasing fancy apartment and/ or fancy locations if you can’t afford. If you are a bachelor , consider living with flatmates. Don’t over-furnish, if it is not needed.
What are some money saving hacks that have worked for you?