When people want to save money they start looking for the cheapest options around. However at times spending more once, can save a lot of costs later. Here’s a look at things you should spend well on for money saving later.
Indians have an old saying “kuchh paane ke liye kuchh khona padta hai” meaning “to get something, you often have to let go of something”. Where this holds true I don’t know, but it certainly holds true for money saving in India. Yes, you need to, at times spend to actually be able to save.
Whenever we speak of saving, people often start to look for the cheapest possible plan for insurance or the lowest rates their vehicles are serviced, or the lowest price an electrical appliance or gadget and even buy things from cheaper stores. While this does save money, there are chances that in the long run you will end up paying more and regret your decision. This is when you are Penny-wise and Pound-Foolish. You save a few rupees here and then spend a lot more later on to keep those things working. This certainly isn’t money saving, but results in money spending.
Money saving for all can be effective if the money is spent wisely and not miserly. Understand the difference. So let us have a look at How to save money sensibly in India:
1. Save on Electricity, Buy the right gadgets and appliances:
When it comes to monthly expenses, the household electricity bill often is a significant contributor. Cutting down on this can lead to some sort of money saving. We all know the usual – turn off fans when not needed, switch off lights when no one’s in the room and use the AC at 24 or above and all. But there are certain things if you spend your money on, they will result in greater savings for you. Spend on the CFL or even LED lights to cut down on your electricity bill. They are costlier than the regular bulbs and tubes, but they last longer and save a lot. Buy star-rated appliances for your homes from branded manufacturers. Also use only company provided chargers and adapters and not the cheaper ones. All this will keep your electricity bill to a minimum and prolong the life of your gadgets too.
2. Save on utilities especially gas and telephones:
Other significant contributor in your monthly expense is gas. The LPG prices are on the rise and it only makes sense that you use cooking methods like pressure cooker wherever possible and use the flame settings sensibly. Opting for pipeline gas is other way to save money. It is a onetime investment where you do have to spend once, but later it can cut down your gas bills in the long run. If you apply for pipeline gas connections in groups it is cheaper too.
Telephone bills too contribute a good chunk of your monthly expenses. Money saving through minimizing your phone bills is therefore a good move. Now-a-days we usually have multiple phones either mobiles or landlines and at times some are used more than the other. Go for plans that suit your requirement. If you hardly call from your landline, it makes sense to go for a plan that has the lowest rent while you can spend on that internet connection if you know most of your contacts use internet based messaging and calling apps. It will save money in your monthly bills. Also the best way is to talk less ;)
3. Car services, go for the skilled workshop. Don’t be lured by cheap labour:
When taking your vehicles for servicing please do not choose to go to a cheaper workshop. Instead go to a service centre of the company your car or vehicle belongs to. Company service centres will have skilled staff and genuine parts. You may have to spend a bit more if you go to them instead of a local garage, but in the long run that will result in lower maintenance charges and longer life of your vehicle. Money spent on such things often result in money saving in the long run.
4. Save on Petrol, Diesel:
I guess after gold if any commodity has garnered so much hype, then it is petrol. Yes it is expensive so it makes sense to save on it. Getting your car serviced regularly will cost you but as mentioned above it will reduce a lot of other overheads, one of them being petrol or diesel. A well maintained, regularly serviced vehicle will give you better mileage too. Also there are ways like car pooling, turning off your engine at signals, using the clutch sparingly etc. that too result in reducing the fuel costs and saves money.
Opting for a CNG kit is also a better option to save on fuel, if the limitations of speed etc. do not bother you. If you are a city driver you can look at this option. However again go for company fitted ones over the local dealers. They will cost you more but again it is money well spent to save on the agony and after sales hassles. It is safer too. Save money on fuel, but sensibly.
5. Pay up on time and pay from your pocket more often:
Pay money to save money. Not paying up is the best way to keep your money with you until a time when the penalties are not imposed. I personally know people who do not pay their mobile bills on time and then once the due date is passed, they say, “I will have to pay penalty so might as well pay it next month with that month’s bill”. But why let a situation arise where you are penalized. You used a service for the amount of your bill, so why let the company earn extra from you just because you are lazy or careless? Pay on time and save money on those silly penalties. Also just like your bills, your premium payments, investments, EMI and more importantly those credit card bills; pay all these on time to avoid hefty penalties. Allocate money for them at the start of the month and pay on or before due date. Also never borrow to pay anyone. It will only lead to double expenses. Money saving by paying up on time is a good move. Reduce your credit usage to a minimum.
6. Save on smaller things:
Get AMC for your appliances like AC, laptops etc. You do lose money if nothing goes wrong, but if something does go wrong you will save quiet a lot. It is like insurance. Also if you are someone who works on a computer and all their files and data are in the computer, spend money to buy an external hard-drive and back up all the data every 3-4 days. It will cost you maybe 3-4 thousand today, but in case your computer crashes you will have Data backup that will save money and a lot more in terms of your work hours and rework and more importantly, data recovery charges which usually start from 5 thousand and can go all the way up to 25 thousand or more.
7. Get proper Insurances:
While most opt for life insurance, mediclaim is often ignored. Get insurance for health as it is an expense if you do not have to claim it, but when you do need to make a claim, it will save you significant amount on your hospital bills. Money spent on mediclaim today will result in money saved on medical bills tomorrow. Find out why is mediclaim important here.
As seen above, spending on the right things can actually result in greater savings later. The key is to identify what is necessary and what is not. Never hesitate to spend on things that can in the long run prove beneficial. That is the difference between spending wisely and spending miserly. Money saving for all can work out on the basis of these simple day-to-day things that we do. Spend well and save better.