MoneyMagpie

Feb 08

5 tips to save money

If this New Year 2018 you have resolved to do better at saving, you ought to read these 5 money-saving tips (particularly if you’re one of our readers based in India.) 

Think Before You Buy Something

Whenever you make a trip to the supermarket, or to the mall, or to that friendly neighborhood store, ask yourself whether you really need to purchase what you have set your hand onto. Question yourself whether you need the product or you want it. According to Suze Orman, personal finance expert and author of The Money Class: How to Stand in Your Truth and Create the Future You Deserve, you will save money if you have answered this question with full honesty.

Do a Price-Check And Compare Prices On Different Websites While Shopping Online

Impulsive shopping is a reality and it is perhaps one of the biggest mistakes made by people when they are shopping online. There a plethora of comparison websites available at your disposal today. Why not make optimal use of them and save a buck or two? Comparison sites compare prices of products offered by different e-retailers and help you make an informed choice. You must also be on a lookout for coupon codes that you can apply to your total bill while checking out and making a payment on a website.

Also keep an eye on additional cash back deals. Payment wallets such as Mobikwik, Paytm and Freecharge usually have additional discounts when you pay through them.

Shopping from websites that offer free shipping means you wouldn’t have to spend a penny in having your product delivered to you right to your doorstep.

Saving From Income Tax

How to save tax? This perhaps is the most frequently asked question by people who are looking at saving money.

It is common knowledge that people across the world constantly look at earning more income but when it comes to filing income tax, they want to save as much as they can.

From time to time, various tax saving schemes are introduced by the government but it is tough to understand all the plans. Here’s where you must take advice from a genuine finance expert or a Chartered Accountant and learn how to save tax.

Under Section 80C, the Government of India has many investment options like LIC, PPF, 5 years long term Fixed Deposits with banks and post offices, and NSC. Money invested in these financial instruments is exempted from taxes up to a limit of INR 1,50,000. Additionally, you may also save taxes on expenses made towards medical bills, mobile bills and daily travel expenses.

You may receive a countless number of calls from insurance agents who will try to sell you insurance policies in the name of income tax savings. These agents claim to be knowledgeable about how to save tax. However, you need to be cautious and invest your hard earned money in the right policy, after duly weighing all the pros and cons.

Use a Credit Card

A credit card can be a fantastic money-saving instrument if used wisely. Depending upon the type of credit card that you have and your spending habits, you can save as much as INR 500 to 1000 every month.

Banks these days are offering irresistible deals on credit cards. You can get cash back on your grocery and fuel bills. Participating restaurants and cinema halls give as much as 20% cash back on dining and movie tickets.

The credit card pay period offered by banks is up to 50 days. You may make all your expenses through your credit card and keep the cash you would otherwise spend in your bank and allow it to generate a handsome interest for you.

Make A Monthly Budget

It may be an old advice but not many of us follow it. Budgeting all the time and keeping a tab on your expenses is a boring job but a very rewarding one at that.

You don’t have to spend hours like a professional in chalking out a budget that works for you. If you plan ahead, you will be surprised how much money you can save.

For one month, keep a close check on all your expenses – those made by cash and through credit cards. From the following months, it is only going to become easier.

All the expenses such as rent, travel, daily consumables, child’s education, local living expenses, online shopping, mobile bills, internet bills, TV bills, dining, transport costs, Insurance, must be noted down. You may then check where you can cut costs in the months that follow.

The hardest thing about saving money is getting started. But once you do, you will realize it is the best thing you have ever done. Saving money is tough but nothing can beat the satisfaction when you see your savings helping you pursue your financial goals. The best time to start saving is now!

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