1. Up your savings rate
Saving is a huge component of early retirement. Cancel underused memberships, cutting back on impulse purchases and avoiding late fees.
1. Cost of Internet and Mobile
By simply changing your usage pattern, you can save a lot of money.
2. Electricity Bill
Try looking around your house. There might be many places you are wasting energy.
Switch off the lights and fans when there is nobody in the room. Switch to a solar geyser.
3. DTH or TV Cable Bill
If you’re working, chances are you don’t get much time to watch TV.
4. Using your credit card wisely.
If you’re working, choose an Amex card and use it wisely to get a 10,000 cash back on your yearly spend. This gives me almost a 10% saving on all most of my spends and I am using this one for last few years. Contact me and I will let you know the details like which card to take and how to make it work.
5. Commuting
Traveling to and back from work makes up a significant portion of the expense for most working people.
Consider using public transport wherever necessary. If using public transport is inconvenient, try using a pooled car. Services like Ola Share and Uber Pool helps you to save a significant amount of money and travel luxuriously. For local trips to the grocery store and market, walk instead of taking your vehicle. Not only will you save more, but also stay healthy.
6 Shopping Lists
Use shopping lists and make sure you buy what is on the list.
7. Subscriptions
Get rid of subscriptions you do not need. Btb I dont subscribe to newspaper. Instead Times of India ePapaer from net.
8. Online Shopping
The Indian online shopping industry provides discounts and offers. Buying online can help you save a horde of money.
Besides these, you can make use of online payment wallets (Paytm, Mobikwik, Freecharge, etc.) to make payments for buying offline goods too. These wallets often have cashback offers which help you save more money.
9. How to Save Tax?
There are several ways to save tax. Explore all your options and speak to a tax expert to lower your tax burden.
Investing in certain types of mutual funds called ELSS mutual funds also reduce the amount on which tax is calculated. ELSS mutual funds are considered a very good tool to reduce income tax and save money in India.
10. Buying Things You Don’t Need
We often buy what we fancy without much of a thought. Many times, such purchases only gather dust without being used.
12. Be a Home Chef
Eating out is expensive. Limit the number of times you eat out.
Cook your lunch at home and take it to work instead of buying at the canteen. Not only will this save you money, it will also ensure you follow a healthy and hygienic diet.
13. Invest Your Money
There is no point in having too much money lying around in your savings account.
14. Stay Insured
Precaution is always better than cure
We live in an uncertain world. It is important to be insured at all times to avoid any type of unpredictability. Life and medical insurance helps individuals in the time of disparities and there are various schemes one may choose. Now, you might be thinking why you should pay a yearly premium when you’re hale and hearty. What if tomorrow you meet with an accident and are admitted in the hospital? Any good medical facility would charge you a sum which is off the roof.
15. Repair vs Replace
16. Commuting and Housing
This is probably the highest of all your spending every month.
A good roof to live under is an absolute necessity. However, there are various factors to look out for when choosing a house.
Avoid choosing a house bigger than your requirement. If you don’t have kids, you probably don’t need a 3BHK. A1 BHK might suffice.
The location is important too. If the cost of living close to your office is too high, consider moving to a cheaper area. At the same time, if you are spending too much time travelling or if the cost of commuting is too high, you should consider staying closer your work space.
17. Quality vs Quantity
Not always, but often, choosing the cheaper item might prove to be expensive in the long run.
Some items are better bought cheap. At the same time, there are other items that are more expensive initially but prove to save money in the long run.
Choose between high-quality and inexpensive products wisely. It doesn’t make sense to buy the highest quality of everything or the cheapest of everything. There must be a balance between both
18. Save/Invest Before Spending
It’ll always seem like you don’t have enough to invest.
When you earned less than you did today, you often felt you didn’t have enough. Now that you earn more, you still feel the same.This is exactly why you should save and invest before spending. Set aside a fixed amount for saving and religiously save that much every month. An SIP might solve this problem as the amount is automatically deducted from your income.
19. Empty Your Shelves!
Sell whatever you don’t need.
Did you buy a tennis racquet thinking you’d learn how to play tennis and later got bored of it? If you don’t use it anymore, sell it. There is no need to hold on to what you have no use for anymore. Giving to charity is another option.
1. Cost of Internet and Mobile
By simply changing your usage pattern, you can save a lot of money.
2. Electricity Bill
Try looking around your house. There might be many places you are wasting energy.
Switch off the lights and fans when there is nobody in the room. Switch to a solar geyser.
3. DTH or TV Cable Bill
If you’re working, chances are you don’t get much time to watch TV.
4. Using your credit card wisely.
If you’re working, choose an Amex card and use it wisely to get a 10,000 cash back on your yearly spend. This gives me almost a 10% saving on all most of my spends and I am using this one for last few years. Contact me and I will let you know the details like which card to take and how to make it work.
5. Commuting
Traveling to and back from work makes up a significant portion of the expense for most working people.
Consider using public transport wherever necessary. If using public transport is inconvenient, try using a pooled car. Services like Ola Share and Uber Pool helps you to save a significant amount of money and travel luxuriously. For local trips to the grocery store and market, walk instead of taking your vehicle. Not only will you save more, but also stay healthy.
6 Shopping Lists
Use shopping lists and make sure you buy what is on the list.
7. Subscriptions
Get rid of subscriptions you do not need. Btb I dont subscribe to newspaper. Instead Times of India ePapaer from net.
8. Online Shopping
The Indian online shopping industry provides discounts and offers. Buying online can help you save a horde of money.
Besides these, you can make use of online payment wallets (Paytm, Mobikwik, Freecharge, etc.) to make payments for buying offline goods too. These wallets often have cashback offers which help you save more money.
9. How to Save Tax?
There are several ways to save tax. Explore all your options and speak to a tax expert to lower your tax burden.
Investing in certain types of mutual funds called ELSS mutual funds also reduce the amount on which tax is calculated. ELSS mutual funds are considered a very good tool to reduce income tax and save money in India.
10. Buying Things You Don’t Need
We often buy what we fancy without much of a thought. Many times, such purchases only gather dust without being used.
12. Be a Home Chef
Eating out is expensive. Limit the number of times you eat out.
Cook your lunch at home and take it to work instead of buying at the canteen. Not only will this save you money, it will also ensure you follow a healthy and hygienic diet.
13. Invest Your Money
There is no point in having too much money lying around in your savings account.
14. Stay Insured
Precaution is always better than cure
We live in an uncertain world. It is important to be insured at all times to avoid any type of unpredictability. Life and medical insurance helps individuals in the time of disparities and there are various schemes one may choose. Now, you might be thinking why you should pay a yearly premium when you’re hale and hearty. What if tomorrow you meet with an accident and are admitted in the hospital? Any good medical facility would charge you a sum which is off the roof.
15. Repair vs Replace
16. Commuting and Housing
This is probably the highest of all your spending every month.
A good roof to live under is an absolute necessity. However, there are various factors to look out for when choosing a house.
Avoid choosing a house bigger than your requirement. If you don’t have kids, you probably don’t need a 3BHK. A1 BHK might suffice.
The location is important too. If the cost of living close to your office is too high, consider moving to a cheaper area. At the same time, if you are spending too much time travelling or if the cost of commuting is too high, you should consider staying closer your work space.
17. Quality vs Quantity
Not always, but often, choosing the cheaper item might prove to be expensive in the long run.
Some items are better bought cheap. At the same time, there are other items that are more expensive initially but prove to save money in the long run.
Choose between high-quality and inexpensive products wisely. It doesn’t make sense to buy the highest quality of everything or the cheapest of everything. There must be a balance between both
18. Save/Invest Before Spending
It’ll always seem like you don’t have enough to invest.
When you earned less than you did today, you often felt you didn’t have enough. Now that you earn more, you still feel the same.This is exactly why you should save and invest before spending. Set aside a fixed amount for saving and religiously save that much every month. An SIP might solve this problem as the amount is automatically deducted from your income.
19. Empty Your Shelves!
Sell whatever you don’t need.
Did you buy a tennis racquet thinking you’d learn how to play tennis and later got bored of it? If you don’t use it anymore, sell it. There is no need to hold on to what you have no use for anymore. Giving to charity is another option.
2. Increase your income
If you earn more, you can save and invest more, which will help you achieve financial independence sooner.
3. Put your money to work
Once you've upped your savings rate and maximized your income, you can turn your attention to growing your money.
After all, as some early retirees say, saving money alone doesn't get you rich but investing can. The simplest starting point is to invest in ELSS, a tax-advantaged savings account or other retirement savings account,
4. Optimize your taxes
"As your nest egg gets bigger, your focus usually switches to tax efficiencyJust by understanding the tax code, "you can cut your retirement timeline by years."
2. When in doubt, just take the next small step. |
The above life lesson in box is from the widely known, highly popular column by Regina Brett. “45 lessons, written by a 90 yearold” |
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