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Secret to save more money!!


These tips will increase your wallet size, trust me I have put forth some exercises, tried personally and it worked. 



A true story, 
A few days ago, in a coffee shop, I was with a friend, who is working in a bank as a senior executive for more than 10 years. 
I was in a casual discussion with him & our conversation came to the topic of money. 
He openly admitted that he didn't save any money until now though he has an SUV car and living a good lifestyle. I wasn't surprised as I often hear stories like that but, what was shocking to me is, he didn't know where his money is going. He didn't even realize why he couldn't save and his credit card debt has piled up in spite of being in a decent income bracket. 

A few weeks back, one of my friends, asked me on the same topic -
"I don't know where my money goes after my salary gets credited. I wish to save but after all my expenses I have nothing to save. Can you suggest how can I save money?"

Different people have different saving strategies and sharing what I learnt - 
Let's start it right away. I give you a simple strategy where you can work and find out where are you spending more and how you can cut that and save some money-
Eliminate 
Avoid
Reduce

To Do - Take your bank statement and credit card statement for the last 3 to 6 months and work out the following -
What expense can be eliminated, avoided and reduced?

“Remember, what gets measured, improves.”

Let us take a look in detail - 
Eliminate credit card debts
This is the foremost important thing, I know this is difficult but if you commit yourself, this could literally change your life. 
Never ever buy anything in EMI or monthly installments.
If you can pay monthly installments it doesn't mean that you can afford it.

If you want to buy that phone or television just to improve your neighbors or colleagues, start saving on your LTSS Jar. Yes, it would take a few months, however, delayed gratification will help you big time. Quit using a credit card for nonessential things.

Ask yourself, 
What is important, that fancy new mobile or financial freedom?


Eliminate the leakage in your spending and choose wisely
If you have mobile plans or DTH or Wi-Fi at your home, check your package, do you really need that high-end package, can you downgrade your package, and will that work?

Best marketing strategy in recent days, 
If you have package 1, you get only 3 benefits. Package 1 cost is $100
If you have package 2, you get 6 benefits, package 2 cost is $150 

The company knew that for most of the people, package 1 is itself enough but they will tend to subscribe package 2 thinking with just 50 dollars extra we get additional benefits. 
However, do they really need that additional benefits – NO!!

What we are not understanding is, we are throwing away money to the services which we don’t need or use. $50 a month is $600 per year and $6000 in 10 years. 
Every small mistake that we do in money management will accumulate and rob off our big dreams.

Eliminate unused club membership
Get rid of all the gym, club and magazine subscriptions that we are not using it regularly. I know, some people think, “Oh, what my gym instructor or yoga teacher will think?”

Real freedom is if you don’t care what others think, you will then become fearless.

What can be avoided?
Avoid food wastage
A simple secret to avoid overspending in grocery –
“Always go to grocery shopping with a list and try to stick to the list. If you work on your list, you will not buy that is unnecessary.”

Avoid impulsive buying - 
Check your wardrobe. Do you really need that 20 handbags, 15 pair of shoes and 50 set of clothes?
Are you kidding me? 

30 Day Test-

Whenever you are tempted to buy something, use this 30 day Test exercise. 

Go to the shop, choose what you intended to buy. Even if you think, “oh my god, I can't live without that new pair of shoes.” Just say to yourself –“Okay, that’s cool and I will come back after 30 days” and leave the shop. I know it's difficult but try it. 

Exactly after 30 days ask yourself, do you have the same urge for that pair of shoes. If you think, it's a must, please go ahead and buy it. Trust me, 99% of the time, you wouldn't feel the same. 

This is working, I saved 200 Euros using this step in the last 30 days. 

Avoid going to Malls. 
Trust me, window shopping is torture when you wish to save money. You should avoid malls unless you actually need to purchase something. 

Avoid smoking. 
If you are still smoking, for god’s sake, quit it. This is not costing you only money also your health and happiness.

What can be reduced? 
Reduce the cost of your insurance –
If you don't have Term Insurance, go for it and that is a must. Other than that, all other endowment insurance policies which give the money back, check do you really need it?
Check your car insurance, there are a lot of options available at cheaper cost, if you find it similar, go for it. 

Reduce eating outside, instead, pack lunch –
Cooking at home is way cheap than eating outside, try to pack lunch as much as possible. On average, 60% of people eat lunch outside every day.

Reduce your taxes -
If your employer offers any retirement plans or any options to save your taxes, utilize it to the maximum. Automate your savings as you will forget that you are saving.

I'm not insisting to cut all the expenses that you do for happiness and live like monk. I believe you need to feed your spirit too. You can go to the restaurant that you love to go or do the things that make you feel better. What I'm insisting is, have a plan and budget and spend based on that. Saving money will not give you just additional money it can buy you freedom. 

There are moments in life where things don't go our way and we should be prepared for that. We should have a Rainy day fund in those critical moments otherwise we will use our savings fund. 

Rainy Day Fund -
Some people call it an emergency fund. I prefer to call it a Rainy Day Fund. Your 3 to 6 months expenses should be saved and be available for you handy in case of any unexpected circumstances. 

Benefits-
·      If you have a rainy day fund, you don't have embarrassing situations of asking your friends for the fund when it's required. 
·      Also, you will not touch your freedom fund or your savings in such instances. 

95% of the population doesn't have rainy day find at all, a survey in America says that. 

I will give you a 52-week Challenge for your rainy day fund, Let’s make it happen-
Are you up for it?

52 Week Challenge, 
Can you save Rs 100 or $10 the 1st week, Rs 200 or $20 2nd week, Rs 300 or $30 a 3rd week, this should continue till 52 weeks. If you just do that you would have saved Rs 137000 or $1370 approx. invest that money and don't touch it. This could be your Rainy Day Fund. 

Our goal is simply to spend less than you earn so that you can start saving for your financial freedom fund. 

You can become a millionaire in one of the ways - 
People working for you 
Money working for you
Your system working for you

If you choose option 2, you need to achieve the following basics:
1. Increase your income
2. Reduce your expenses
3. Eliminate debt
4. Invest your surplus money

Hope the above saving money tips are helpful. Please leave your comment or feedback. 

Have a great weekend. 

With Love, 
VJ

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