MuthootBlog

Money Saving Hacks That Actually Work

  • November 30, 2016
  • rootroot

Asking whether someone wants to start saving money is a rather redundant question. Of course, savings are appreciated universally by everyone. But savings are easier said than done. However, there are a lot of small things that you can do on a day-to-day basis to increase your savings. In that spirit, here are 14 mini hacks to help you save more money:

1. Keep a Separate Savings Account

Take a portion of your paycheck and have it transferred immediately to a savings account that is not so accessible. To that end, it is ideal to open a separate savings account specifically for this purpose.
After all, you cannot spend what isn’t there in the savings account (the one you use regularly for transactions). Automate the procedure for every month so that you don’t skip on it during any given month.

2. Follow a ‘30-Day Rule’

If you wish to make a rather large purchase, give it about 30 days. If at the end of that period, you still need it, consider buying it. More often than not, people notice that the purchase does not seem important enough after a period of time.

3. Track Your Expenses

Seems like an obvious hack, but just making a list of your expenses is a half-baked approach. At the end of the month, sit down and consolidate them. Track expenses that seem frivolous, and separate them from the ones that were absolutely necessary.

4. Budget The Month

Once you have an idea of your basic expenses, prepare a budget for the next month and stick to it in the strictest sense of the word.

5. Avoid Late Fees

Check all the utility and credit card bills that you are paying. Automate their payments wherever you can. Avoid late fees like the plague.

6. Insurances – Always Compare Before You Buy

Today is a day when everyone has and needs insurance policies. But that does not mean that you just buy without censor. Always compare insurances before you buy. For all you know, there might be a better deal hiding just around the corner.

7. Scrutinize Your Credit Card Statements

Credit cards, besides providing convenience, also foster the bad habit of over spending. Check your statements for the various charges that are levied, and raise a concern with the service provider if any of the charges seem unnecessary.

8. Use those Credit Card Rewards

A lot of companies offer various rewards on their cards. Consider your spending habits and choose a card that will give you more reward points for the way you spend. In fact, you can also opt for Cash-back Credit Cards where the accumulated reward points can be redeemed by being adjusted against the outstanding dues.

9. Review Your Mobile Plans

Most of us don’t even remember the tariff and data plans we chose when we bought our Smartphone connections. What made sense at that time might not make sense today. Review your mobile plan and change it if necessary.

10. Prefer Regular Maintenance over Repair

Regular scheduled maintenance for your home or your car may seem an unnecessary expense when everything seems to be running fine. But, the fact is that regular maintenance will cost you far less down the road, compared to a sudden breakdown.

11. Turn Off the Lights

Another rather obvious hack: save electricity. Whenever you’re not using it, turn off the lights and fans.

12. Eat Out, but Fortnightly

If you go out to eat a lot, you should dial it back by a bit. Don’t cut it out entirely, but try limiting it to a couple of outings per month.

13. Use Coupons to the Fullest

Whenever you have to shop, always check online for coupons. There are a lot of websites that offer coupons for a lot of shopping options. You can always save with coupons.

14. Always Prefer Quality While Shopping

Buying a cheaper version of some item like shoes might seem like a better idea at the time, but in the longer run, it will cost you more. Buy a good quality product that will last for a longer time than a product that is cheap but will have to be replaced every few months.

Like a billion drops make the ocean, these simple hacks shall meaningfully contribute to your corpus.

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