Do you like to save money or spend it ? I like to spend it & you? If you belong to my category then you should definitely read this post completely but if you love to save money ? Then I am going to share some more techniques which can help you in the process of saving even more money.
1. Spend what is left after saving but don’t save what is left after spending
– Warren Buffet
The first thing which I do with the money received through pay check is spend it as soon as possible through monthly expenses, shopping, parties,..etc and make the following prophecy true
First week of month – Golden week
Second week – Silver week
Third week – Copper week
Fourth week – Popper week
and in the 4th week we will be litrally waiting for month end. To avoid the above trap we can first save a part of money (10%,20%,30%) and then spend the rest of the money which gives us a Strong feeling of possessing some amount of money with us.
2. Open a dedicated savings account
Try to open a savings account and discipline yourself to only put income into that account but avoid taking money out of the account.
If you take out the money that should be only to increase your assets or for any other investment purpose only but not for any other casual expense.
3. Daily Balance sheet
Try to have a calculation of flow of money everyday. By doing this, you become aware of your expenses and check whether are necessary or petty ( useless ). This gives you a practice in managing huge amount of money with out any confusion and keeping track all your incomes & expenses. It is wonderful technique which I have following since I started earning because the problem with jobs is the moment you receive your paycheck you have a lot of things to be settled down & you will be out of cash in short time but if you keep track of the balance sheet then you have a chance to look every transaction you make.
4. SAVE Your promotion
If you are looking for a promotion only for the pay raise it would provide you then though are not in a good direction because if start living with your existing salary only then you will be saving & investing all your extra salary by which you can be rest assured when you run out of money in the middle of the month due to some requirement as there is an extra set of money @ your reach.
Don’t just save the money and keep it in the savings account instead invest the money because the value of money is decreasing due to inflation, even if you put an X amount in bank as FD and the amount obtained would be greater than X when the term is completed but the value would be same as X or less than X.
This is a biggest mistake committed by many people due to the fear of losing money in the process of investing in the assets but are investing in liabilities as it is & not risky.
6. Month end Bonanza
If you carefully spend each & every penny even after moving some amount to your initial savings, then you will end up with some money end of the month which I call as Month End Bonanza (while every one @ end of month look for their salary – you get bonanzas without a need to look for your pay check). Month end bonanza will give you a lot of joy as that is your hard saved money & you can happily spend that without any hesitation, you’ll love it.
7. Long term investments – monthly recharges & plans
If you can analyse your expenses through the daily balance sheet technique then you can subscribe for higher quantity & duration which can save you money if taken in Prior. For example, we have an Internet service provider who offers 10 – 20% discount if we pay 6 months bill in a single shot.
8. Give away some magic
I have read a quote – Givers are given
If you see successful or richest people will be very generous, ready to help /give anything possible. Example :
Bill Gates, Warren Buffet
I had a question – Why do these people work so hard, earn a lot of money and then give it back again. There’s a magic in giving away something than taking which in turn gives the giver a feeling of happiness fueled by which they go onto achieve new milestones – It is a WIN -WIN situation in which both the parties are happy.
Try to give some magic/money every month to some one who have difficulty in possessing it which helps both you & them in return.
9. Learn more to earn more
According to Jeffrey colvin in his book Talent is Overrated A person’s knowledge, skill, ability deplete with increase in his experience that means a person stops learning anything new once he starts earning. But, learning is proportional to earning – The more you know, the more you can earn.
Try to invest some of your earning in yourself to upgrade yourself and your skills which will indirectly help you in climbing up the ladder instead of down as direction is very important.
10. Plan your activities in Prior –
Proper planning prevents last minute expenses. Say, for example you are planning an outstation journey and if you didn’t plan it prior then while booking the tickets – journey planned in an Ad-Hoc manner cost you a bit more than actual cost. Similarly, plan your activities prior to avoid last minute hurry & expenses.
Contentment is one more quality which we can develop to save more money. What is this contentment actually is ? It is being self-satisfied, happy to the maximum extent with what you have, you can call this Gratitude also but in terms of money contentment is more apt.
Because you will never be able to save money unless you have a deep internal feeling that you are happy with what you already have and you can be even more happy by saving it instead of spending the money in trying to buy happiness through short lived things.
12. See the value of product not its price before buying
As Oscar wile says, Who wants the cynic who knows the price of everything but the value of nothing – If we see price & brand always then we will becomes like price tag in 3 idiots movie but if we think about the actual of the product to us then we restrict most of our unwanted expenses.
13. Avoid Credit and Debit –
I still remember Super star Rajini’s words in Basha when one of his fellow auto wala asks for 1000 rs for his sister’s marriage – “There will be no peace in LENDING & BORROWING money, we have to be satisfied with what we have. However, keep this 100 as a gift”. How golden words are they because if you lend money to some one and he was unable to repay you on time imagine how difficult it would be to meet our commitments with that lent money. Borrowing money definitely takes out some extra from our pockets as interest & worst experiences if we are unable to repay on time.
14. Self – Discipline
Last but the most important of all the above things is Self-discipline to stay committed to your commitments about saving money instead of spending. I always wondered what the hell does it actually ‘Self – Discipline’ mean? I got this answer from a Brian Tracy’s book ” It is doing the thing we should do whether we feel like doing it or not ” isn’t it a wonderful definition. It is hard to be self-disciplined it is the only way you can achieve any dream/goal you put forth for yourself.
I can assure that the above mentioned techniques can help save money and therefore give you an extra control over your money which can make you rich mentally right a way and actually in coming days………..
Oooooo I have also started saving money with you from now, feels good. Don’t forget to put down your opinions through comments and share the magic if you liked it …
When I started the post the count was 10 but it went on to 11,12,13,… so I thought of naming it after my b’day date 12 and everything additional to that as +. Hope you like the post & subscribe to the blog to stay connected.
Bye ……Take a lot of care of yourselves….