{"id":2730,"date":"2022-12-26T08:21:45","date_gmt":"2022-12-26T02:51:45","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=2730"},"modified":"2022-12-26T13:48:03","modified_gmt":"2022-12-26T08:18:03","slug":"save-money-without-being-cheap","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/save-money-without-being-cheap\/","title":{"rendered":"10 EASY Ways to Save Money without Being Cheap","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
If you carefully observe the financial behaviour of people around you, you will notice that people generally fall into two broad categories: The Frugal and the Spendthrift.<\/p>\n
Of course, you\u2019ll find the balanced ones. The people who save and spend, are abundant and generous at the same time. We look at such people with awe and wonder how they strike that balance.<\/p>\n
So how do these people spend and save and still not appear cheap?<\/p>\n
The mantra is in creating the perfect balance. It is how we balance saving with expenses that makes us abundant in the real sense.<\/p>\n
Let\u2019s get into the mind of the spendthrift. The first things that cross their minds when they receive their salary<\/a> are –<\/p>\n – What to spend on With no regard, whatsoever, for saving a dime for the future, the spendthrifts are a happy-go-lucky lot. But that is till the salary lasts, which is about 10 days from the day they receive it.<\/p>\n The rest of the month, these folks live like paupers on petty cash received from family members and friends. The word \u2018saving\u2019 is either a futuristic plan or a loathsome idea for them.<\/p>\n The next group – the frugals, are a world opposite. These people are always on the lookout for deals, the cheapest deals that will save them a buck.<\/p>\n They haggle for everything and put their lives on hold for a future affluent time. Naturally, that time never comes, since affluence is more a state of mind than a physical reality.<\/p>\n The frugals are the poor in mind, even if they have a 6 figure salary. The mind of a frugal revolves around –<\/p>\n – Savings No category is superior or inferior to the other. The spendthrifts often look down upon the frugals, but when their money is depleted, they come to the frugals for month-end debt.<\/p>\n I would like to put a disclaimer here that my generalizations are just that – generalizations. Nothing is aimed at any group of people. I have personally been through the extremes of both spendthrift-ness and frugality. I especially remember my pre-Durga Puja months wherein I would save like a miser so that I can spend with open hands during the Puja and Diwali, which I did.<\/p>\n Post-Diwali, I would be left with practically nothing to support myself till the next salary arrived.<\/p>\n But I\u2019ve grown ever since my early-20s and have learned through experience how to wade through the muddy waters of consumerism and distinguish between wants and needs.<\/p>\n I have also been wiser in my investment and money-growing schemes.<\/p>\n Based on my experiences, and trial and error, I have written down 10 foolproof Ways to save money without being cheap. Read on, and see how many of these you can start applying immediately.<\/p>\n Said the businessman David Ramsey – \u201cA budget is telling your money where to go instead of wondering where it went\u201d<\/p>\n This quote practically changed my perception of budgeting. Budgeting, I used to think, was for parliaments and governments. How wrong!<\/p>\n Anyone who earns even a couple thousand bucks should start with a budget. Budgeting helps not only to allocate money to various important areas, it also streamlines your expenses.<\/p>\n Almost everyone is powered with a smartphone now. There are scores of Expense managing and budgeting apps that come with very easy to use features, and timely reminders.<\/p>\n These apps are so advanced, they\u2019ll even remind you of your utility bill payment schedule, your premium paying dates and so on.<\/p>\n If it helps, you can set your budget for an entire 6 months or a year in advance. Always be a little lax around the celebratory months so that you can enjoy the festivities to the fullest.<\/p>\n Budgeting helps you set your financial goals. Without goal setting, achieving equilibrium in your finances can be tough.<\/p>\n If you need help choosing an expense budget manager, you can check our review of the best budgeting and expense trackers here – <\/i> 8 BEST APPS TO TRACK MONTHLY EXPENSES IN INDIA<\/i><\/a><\/p>\n We Indians love saving. As per data from The World Bank, almost 80% of Indians have bank accounts. The chosen mode of savings for us is bank interest.<\/p>\n However, given the present rates of savings account interest (mine gives 2.7%), our attention naturally shifts to Recurring Deposits (RD) and Fixed Deposits (FD).<\/p>\n Both RD and FD have higher rates of interest for short term investments. In fact, most RDs and FDs are more profitable for short-term investments now.<\/p>\n You can earn as much as 6% – 8% on an RD or FD.<\/p>\n Banks now enable direct deduction for RDs from your savings account, making it even easier to save. You do not need to go to the bank every month to deposit the money for an RD account.<\/p>\n You can also start an RD from as low as Rs. 500 per month, for a period of a year or 15 months. So what\u2019s stopping you to get yourself an RD now?<\/p>\n <\/p>\n If your risk appetite is good, you can go beyond saving, and start investing. For beginners, you can invest in ETFs (Exchange Traded Funds). If your risk appetite is a little higher, Stocks can be a part of your financial investment strategy.<\/p>\n ETFs are wonderful instruments for slightly long term investment. Warren Buffet, one of the most successful investors in the world, considers ETFs a very reliable investment tool for retirement<\/a>.<\/p>\n Future-proofing is something that is ingrained in our minds since the time we start earning. We often hear our elders say to \u201csave for the future\u201d. Even though Gen Z and millennials do not pay to heed to such advice, there is indeed much wisdom in paying attention to it.<\/p>\n If your profession does not provide a pension system, you should, even more, start investing in ETFs or ETF Bonds. It is a myth that investment is for middle-aged folks. The sooner you start investing, the lesser you\u2019ll have to worry about your advanced years.<\/p>\n What is more, when you start investing at a younger age, you are more aware of finances and can create a balanced financial portfolio that can help you get better deals on credit cards and loans, should you need one.<\/p>\n If you want to know the benefits of ETFs, and how in what terms they fare better than stocks and debentures, read our post on ETFs here<\/a> .<\/p>\n <\/p>\n We all make purchases throughout the month, be it grocery or stuff needed at home, or stationery items or perhaps apparel. We all pay our bills and mortgages.<\/p>\n Now imagine every time you pay, you get back something from the amount you paid. It can be in the form of reward points that you can later redeem for some gifts, or it can be in the form of cashback.<\/p>\n Earning from paying your bills and buying grocery and other necessities is like getting a return birthday gift. Based on your per annum pay, and your purchase trend, you can apply for a credit card best suited to your needs.<\/p>\n
\n– What next to buy
\n– What are my needs now<\/p>\n
\n– Savings from present expenses
\n– Savings for future life<\/p>\nHow to Save Money Without Being Cheap<\/strong><\/h2>\n
\nPlease take my generalizations with a pinch of salt, and let me know if you agree or disagree with them, without being a cynic or a critic.<\/p>\n1. Set a budget, stick to it<\/strong><\/span><\/h3>\n
2. Have an RD Account<\/strong><\/h3>\n
3. Invest in ETFs<\/b><\/h3>\n
4. Purchase through Credit Cards<\/strong><\/h3>\n