2009 - Year of the Recession?
I learnt very early in life that a Rupee saved is a Rupee earned and I owe a lot to my dead grandfather for having taught me that. During 2009 (which some financial wizard namely Me is calling the year of the recession) I guarantee you that every rupee you end up saving will be a rupee earned for you and your family.
Below in my article or report on "How to Save Money in 2009" are various measures, tips, suggestions, hard facts or plain and simple advice that will help you save over Rs. 2 lakhs or $5000 in the year 2009. How you spend that saved money is purely upto you. You could save it for the future or you could go on a nice long vacation to Egypt or Europe or America or wherever. Whatever you do with it, one's thing for sure you earned every single rupee of it.
This report or article on "How to Save Money" can also be titled "How to Make or Earn Money". This report has been written mainly for residents of Mumbai city in India but it applies to almost anyone living anywhere in the world of recession and economic gloom in 2009. I would appreciate your feedback, suggestions or criticisms of this article after you have read and tried some of the 'money saving' measures listed below.
According to GlobalRichList.com, I’m in the top 2% richest people in the world. But there are billions more people out there who are not in the top 5 percent, and they’re not in the top 10 either. The majority of our planet is living in poverty.
Economic recession aside, we sometimes look at the world as a prosperous place with a few unfortunate pockets of poverty strewn about. It’s so easy to forget that the majority of the world lives in poverty, or pretty damn close to it. Easier for us living in Mumbai, at least.
The UN definition of poverty is living on less than a dollar a day; I’d suggest that’s a number chosen to keep the sheer statistical size of this situation from light, since it’s hard enough to live on $30 a day. Sure, not as extreme, but by no means easy in many areas of the world. We are incredibly lucky to be a part of this miniscule percentage of people who are, by all means, rich.
Whatever affects America and the Western world will soon affect Mumbaikars and India. Be aware of the latest happenings in USA, UK and other major parts of the world as our local NEWS channels often don't report major events in the western and oriental world at all.
I have been reading about the slow down of the US economy for over 7 months now and it has been reported in India just 2 months ago. Thanks to Google News for always keeping me ahead of the ordinary Mumbaikar or Indian. And, trust me you only need to spend 10 minutes on Google News & Digg to find out what are the major news or events in the other parts of the world.
Learning about the meltdown of the US economy so early helped me save up well in advance and possibly helped me make wise decisions regarding investments, my business, my life in 2009, etc. I hope this article on "How to save money in 2009" will do the same for you.
The report that follows contains pointers from research done on over 100 different websites owned by top financial experts and millionaires. Most pointers have been placed here directly from these financial sites and blogs so you may find that some points or money saving tips are repeated again and again. I see it as a good thing and the purpose has been intentional in doing so. It will help us remember key points much better and possibly you can start applying them again and again.
The goal or objectice of this money saving article, report or essay is to save money for You and Me in 2009. The goal is to teach you the many ways of saving money in everyday life. The goal is to teach ourselves that a rupee saved is a rupee earned. So, let us all get together and apply these easy, simple ways of saving money so that we may learn not just how to save money but also earn money for yourself, your family and each and every human being on this planet.
2009 is being called the Year of the Recession by me and a few other financial writers. Let us turn the year of the Recession into the Year of Savings & Earnings. Read on....
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Easy Ways to Save Money
Take care of furniture, electronic items, etc. better.
Saving energy = Saving money. Cut down on electricity consumption and save big.
Save money on Gyms by walking in a free community park or working out at home instead.
Live in a smaller home in a location close to transport, shops, schools, hospitals, etc.
Get your car or bike serviced on time. You will save thousands in the future that you would have otherwise spent on spare parts, etc.
Shop mainly during sales and special discount exhibitions for products you buy just once or twice a year.
Shop when no one else wants to or no one else goes out to shop. Shop owners will usually give bigger discounts or bargains at these times.
Collect your excess coins at the end of the day in a jar. You will be surprised how much you collect by the end of the month.
Plan to save 25% to 35% of your savings each month for future requirements and unforeseen circumstances.
Have a monthly budget and stick to it firmly.
Unsubscribe to needless magazines, newspapers, clubs, etc. that cost you extra money each month.
Get rid of all your old stuff, junk, etc. at home by selling them on Ebay or donating it to a charity.
Start a new hobby that you could turn into a part-time career in the future during your spare time.
Always make and carry a shopping list when you go to the supermarket or grocery store or shoppin in general.
Go shopping on a full stomach. Mall restaurants are very expensive and you could easily save a thousand or more this way.
Order food from resturants or go out for dinners just once a month. That way you spend more time at home with the family and you save more money that you can use for your next big vacation.
Learn to cook at home. Home food is always cheaper than outside food (and healthier). Possibly the biggest money saver in Mumbai middle-class and upper-class homes.
Cut down on your social life outdoors and invite your friends to your home for a home-cooked dinner instead. It is always cheaper to socialise this way and your friends will probably invite you over for dinner to their place next time which will save you a lot of food money on that day.
Learn to iron your own clothes. You will easily save Rs.200 or more each month by ironing at home and your clothes will last much longer.
Coffee shops, fast food joints, etc. are a real waste of money. Don't go to these places unless you really have nowhere else to go.
Always do plenty of research before buying furniture items, electronics, home appliances, etc. You will find the best deal when you search deeper and harder before you purchase anything.Tips for Frugal Living and More Ways to Save Money
When it comes to buying a home always buy a home in an area that's already developed and which is close to shops, medical care, schools, markets, bus stops, main roads, etc. Cheaper homes in places like Vasai and Kalyan might tempt you but you will spend a lot of money on travel, shopping, outings, etc. by living in a far off, under-developed area.
I have said this tons of times before in my finance lectures - Never carry more than 1 credit card and ensure you always pay your credit card bills on time.
Resist the temptation to carry credit or debit cards when you go out shopping or dining. Pay by cash instead and leave your home with a set amount of cash and nothing more. The banks have a way of slowly and surely draining you off all your savings through sly interest rates, commissions, charges, etc.
Fill your petrol tank to it's fullest and you will save a lot in 2009 on useless trips to the petrol pump to fill gas or pterol.
Do a lot of research before buying a car and always go for the CNG or LPG models rather than petrol or diesel. You will save a thousand or more each month by doing this.
It's been over 10 years since I have a mobile phone service. And, I have managed to keep it prepaid for over 8 of those years with the same number. Wasting money on changing numbers, new mobile handsets, etc. can really cost you a lot in 2009.
Buy 1 good reliable cell phone and don't buy another one for atleast 5 years. It may seem hard for some souls out there but I know hundreds of people who have the same reliable mobile phone and same mobie number for over 5 years.
Supermarkets come out with their promotional schemes every month. Find out the cheapest time to buy essential groceries and household products and buy only at that time.
Avoid buying on weekdays. Keep your shopping for early mornings on a saturday or sunday and do your grocery shopping just once a week, fortnight or month.
Buy fruits, vegetables, meats, etc. once a week or once a month (if possible). And, always buy from supermarkets as it is much more cheaper and of finer quality than hawkers on the roads or smaller stores.
Make a budget each month for socialising, picnics, entertainment expenses, vacations, outings, etc. and stick to it. It's amazing how much you can save when you know you have only this much to spend each month on entertainment and recreation.
Don't buy a second or third home in a far-off place like a hill station, village, etc. You will probably travel there only once a year and you will spending a hell of a lot on maintaining the damn place. Instead, book a nice cosy hotel room in a good vacation spot like Goa, Kerala, etc. and you will save plenty of money each year on maintainence bills, etc.
Shop at fixed supermarkets, stores, etc. You get to know the place better and the staff that work there. It amazes me how much I save each month by going to just 1 supermarket and resisting the urge to go in for promotional schemes of other supermarkets and stores at the same time.
The biggest saver is watching less TV. You are less influenced by useless, pointless advertisements and more importantly you save over 2 thousand or more each month by subscribing to a very basic cable connection that cost less than Rs.300 per month. It's shocking that people don't take all the hidden charges that go with leaving the TV switched on for hours and hours each day. You need to pay for not just the TV connection electricity but also the Cable Set-Top Box, Fans, Lights, the pizza home delivery on cricket match days and holidays, expenses for drinking more tea or coffee or cold drinks, etc.
Studies in America have conclusively concluded that watching less TV per day and spending less time on the internet saves all of us a lot of money each month. We are less influenced by spot bargains and tempting sales offers on TV and the internet when we watch it or surf it for less hours.
Plan out a weekly menu at home and stick to it. I know a few smart people who do this and save a lot on breakfast, lunch, tea and dinner expenses each month.Deeper into "How to Save Money in 2009"
Always have a budget. Whether it's for food, clothing, shelter, entertainment, vacations or other common requirements.
Maintain a list of all the items you generally need from the supermarkets, stores, etc. each month and buy only that. Don't buy products for more than 3 months at a time unless you use those products every single day or regularly enough.
Stick to brands and product labels you trust or have heard a lot of good things about. Resist the urge to buy new products that are selling for cheaper just because they are cheaper.
Maintain a monthly diary which tabulates all your expenses and do it on paper rather than on the computer. Go through this diary once a week and try and figure out where you can save further or spend more to enjoy a better quality of life.
Cut down on meats such as beef, mutton, chicken and fish. Cut down on expensive veggies like mushrooms, cauliflower, fresh peas, etc. Cut down on costly dairy produce such as paneer, cheese, processed carton milk, etc.
Cut down on daily shopping or thrice a week shopping for groceries and instead shop just once a week or better still once a month.
Buy the best and largest sized fridge you can afford. This way you can stock a lot more in there and believe it or not the electric consumption is more or less the same as a mid-sized fridge.
Don't waste leftovers. Whatever leftovers are remaining can be used for making salads, sandwiches, soups, etc.
Don't spend on junk foods, chips, colas, roadside foods, etc. These items are just a waste of your hard earned money and will make you spend on medicines more and send you to expensive doctors for treatments during the future.
Shop without your kids (if you have any). Taking kids along means you have to spend on chocolates, icecreams, junk foods and more which you would not have done had they been tucked away in their cosy beds at home when you went out shopping.
Drink lots of free & clean, filtered water. It will save money you would otherwise spend on teas, coffees, cold drinks, etc. throughout the month.
Use ceiling fans, table fans or air coolers rather than air-conditioners. You will save atleast Rs.500 a month on your electricity bill by just this 1 step.
save another Rs.750 a month on your electricity bill by cutting down on using the water heaters, washing machines, electric tea kettles, microwave ovens, toasters, blenders, etc.
Install CFLs to save energy. Compact fluorescent lights use about a quarter of the electricity of normal incandescent bulbs. They also need replaced much less often. You save atleast Rs.100 a month by changing all the home lights to CFLs.
Drive smoothly, at a reasonable pace and use your brakes less often. Change your oils and lubricants on time. You will be thanking me for this in the next 5 years or so.
Do research over the internet before going on your next vacation. I did this myself in the last few years and have saved over 2 lakhs or more thanks to the research done on the vacation place, hotel stays, restaurants, sight-seeing, shopping areas, overall culture, etc.
Buy quality products always. Quality items may cost more up front, but they last longer and generally provide better results than cheaper, inferior products. Examples of items you should buy of higher quality include furniture, clothes and shoes, vehicles, computers and other electronic devices and other items that will see a lot of use.
Be more careful. I have 2 friends who I dare say are exremely careless by nature. They leave their cell phones in taxis, drop laptop computers by mistake often, break remote controls and other small electrical devices, etc. This happens with them almost every 2-3 months so much so that they end up spending a lot of their savings on new products or getting the old ones repaired.
One of the best investments in Mumbai in 2009 is spending well on a reliable internet connection at your home. You will need the internet for tons of things including shopping research, vacation research, NEWS, etc. Don't compromise on a good internet connection 24x7.
I sometimes find it surprising and amusing that many parents allow their kids to watch channels such as Discovery, Nat Geo, etc. claiming it will increase their general knowledge. One survey done in America has concluded that most serials on these channels are outdated and of no daily relevance to human beings. Do you know the most watched shows on these channels in 2008? It was the animal and reptile shows. Now tell me honestly, when was the last time you saw a real cobra or black mamba in Mumbai. And, even if you saw it how are these shows useful in your child's healthy upbringing.
Avoid taking any loans in 2009 and try to clear up all debts as soon as possible. The interest rates add up and soon you will be paying triple or even 4 times the actual credit card amount or loan amount.
Carry your lunch to work in a tiffin or use a dabbawalla service. It will help you save atleast Rs.500 per month or more by doing this.More Easy Ways on How to Save Money in 2009
Buy only what you need.
Save money by joining a DVD rental library if you really love watching a lot of movies.
Buying quality stuff always saves money.
Simplify your wardrobe. Buy quality clothing and accessories.
Buy clothing, shoes, accessories, etc. just once a year during the 'End of Season' sales.
Make money with your clutter by selling it on auction sites like Ebay.
Drink less alcohol, smoke less and (once again) avoid junk food and cheap roadside foods.
Build your DVD movie collection or simply watch HBO at home. Trust me, many of today's movies are not worth watching. And, the Rs.500 or more you save from your entertainment outing will come in handy elsewhere.
Download MP3s off free sources online and listen to them more rather than the Radio. Mumbai radio stations are just an extension of useless TV channels.
Keeping the current economic meltdown in mind I would advise you to switch all your bank accounts or financial investments to nationalised banks. If they crumble the government will reimburse you.
Invest in fixed deposits in nationalised banks rather than trading shares or investing in mutual funds. 2009 is not the year to play around with your money. You will earn a healthy income of Rs.10500 on each lakh you keep in a fixed deposit. And, you can always break the deposit anytime if you badly need the cash.
Go on vacations in the off seasons and when things are slow at work. You will end up saving on your hotel stays, etc. and nobody will even notice you missing from work when there isn't much work to do anyways.
Spend wisely on many shorter vacations of a few days in duration or even a 1 day picnic rather than go on just 1-2 long vacations. I know a friend who goes on 1 major foreign vacation each year and he spent nearly 3 lakhs on his last 24 day European tour without even enjoying himself. Compare that with my best friend and me who go on a short vacation almost every 4 weeks and spend just Rs.10000 or less each time per person. And, yes he did manage to go to North America on vacation to his sister's place and ended up spending just 1.5 lakhs on a 45 day vacation. You compare and check who's the smarter one and the happier of the two.
Go for free film shows and festivals at the Consulates, movie halls, etc. I have been going for the MAMI Mumbai International Film Festival for the last 9 years and have found it really cheap. Just Rs.300 for a pass that lets me watch 30 or more movies that week. I don't need to visit a movie hall or multiplex again for the entire year.
Fill your fridge. Lower your electricity bills by stocking your fridge with water bottles. The less empty space you have in your fridge, the less cold air will escape whenever you open it.
Wait before purchasing. Wait at least 30 days before making major purchasing decisions. It will help you truly think about if you need it or should buy something.
Cancel your land line. Save money everyday by using a prepaid cell phone and skipping the land line.
Avoid wasting money on sending silly SMSes to friends and colleagues. They don't really value your SMSes or else they would have told you to stop already.
Avoid wasting money by emailing on opinion polls, replying to spam emails, etc.
Never take part in reality show's gimmicks who ask you to vote for a particular contestant to stay on or whatever. The SMSes always cost you much more than ordinary SMSes and can finish off your mobile phone balance pretty quick.
Don't subscribe to caller tunes, fancy ring tones, etC. Once again, it's just a waste of your hard earned money.
Don't give free money or excess coins to beggars, air fillers at petrol pumps, hijaras or eunechs, etc. Also, tip people only when they offered you a good service and not because everyone else is doing it.
Challenge yourself to save a little money every day. I started a 30-day challenge called “A Hundred A Day” 2 years ago and have managed to save up quite a lot of money in the last 2 years.
Open your windows during the day and switch off the fans during the cooler months.
Dry your clothes outside on your balcony rather than use the washing machine to dry them. Stats reveal the drying process uses up most of the electricity.
It may sound a bit silly but drink your morning and evening cup of tea or coffee at work rather than at home. You save another Rs.200 or more this way.
Use less detergent when you wash utensils, clothes, etc. Avoid hiring a servant or maid and learn to wash utensils and clothes yourself.
Avoid late fees. Always pay your bills on time. You will easily save Rs.100 a month this simple way. And, yes you will also reduce your stress levels a bit.
Use the cooking gas for cooking as much as possible. It uses no electricity, is good for the environment and will lower your electricity bills a lot. Also, food tastes better the traditional way rather than the microwave way.
Get a haircut once every 2-3 months rather than every month. Avoid getting facials, massages, etc. which usually cost 5-10 times more than the haircut.
Stop drinking cold drinks, packet juices, processed milk, etc. Save another Rs.100 or more each month by eating fresh fruits and drinking fresh juices or plain water.
Cut up all your home delivery menus from fast food joints, pizza parlours, etc.
Don't call long distance. Use Yahoo or MSN Messenger to talk free for hours to people anywhere in the world over the internet.
Processed foods such as cornflakes for breakfast, canned beans for lunch and canned tuna for dinner are a lot more expensive than porridge for breakfast, fresh beans for lunch and fresh fried mackerel for dinner.
Sleep for 8 hours or more a day and eat a wholesome breakfast in the morning and you will probably save a lot on your lunch and dinner bills. Also, studies reveal that those that skip breakfast usually spend a lot more on lunch and tea bills every month.
Avoid the temptation to go for lifetime free credit cards, free SMS schemes, etc. as when you get the bill you soon realise nothing much in this world is truly free.
Buy rice, pulses, grains, etc. in bulk once every 3 months or so and store them in big containers at home. Look out for the cheapest deals at local supermarkets and but them then.
Switch off all electrical appliances from the mains during the day when you are at work and at night while you are sleeping unless of course for some weird reason you love paying Reliance Energy or Tata Power an extra Rs.200 or more each month just like that.
Collect stable foreign currencies which are popular worldwide and use it on your next foreign vacation rather than waste 10,000 or more on conversion rates. I had been to Thailand recently and had no dollars so I purchased it at the Airport for Rs.50 a dollar only to discover that I was getting just getting 38 baht for a dollar at the Bangkok airport. I lost almost 8 Rupees per dollar. I am never going through this conversion thing again at the last minute.
Use your car lesser and lesser. Or better still work from home or close to home.
Buy a 2-wheeler and use it to go to nearby places instead of the car. I don't even have a car and really save a lot more on fuel costs, etc. every month than every single one of my friends.
When on a picnic or a vacation try visiting free places rather than expensive museums, galleries, etc. which only drain away your vacation budget. And, if you find tourist spots charging a heft entrance fee please complain against them on travel websites, forums, etc. so that they learn a lesson and reduce it or offer free entry to future travellers.
Force the government to make better roads and other vital city infrastructure in 2009 as it will save a lot on tyres, oil, petrol, spare parts, time, etc.
Turn off the lights whenever you don't need them. People think that they need to leave lights on till they go to sleep for sone reason. Just switch them off in empty rooms.
Switch off the computer monitor whenever you are away from the computer for more than a few minutes.
Use towels, cloth napkins, etc. rather than paper ones wherever and whenever possible as it saves a hell of a lot of money for you. I use cloth nappies for our baby and my friend uses disposable ones. It comes as no surprise that I save over Rs.500 a month by doing this. And, he spends over a thousand on them monthly. Poor guy.
Fill your car tyres often as they improve the mileage.
Try to leave home at low traffic hours and save a lot on fuel and commuting costs.
Always carry a calculator while shopping and while on vacation. It has helped save me a lot of time and money in the last few years.
Go out for lunch instead of dinner. Most restaurants are cheaper at lunchtime. When you decide to treat yourself, go out to lunch and stay in for dinner.
Drink water. Save a few hundreds on your bill by drinking water instead of soda, packet juice or alcohol.
Distinguish between needs and wants. Before you start buying toys and specialty items, decide what you need more: the product or the money.
Catch a matinee. Movies at 12PM are the same as 9PM. Beat the crowd and save money by catching the early show.
Don't buy popcorn and coke. Tickets are expensive enough. Don't pay for an overpriced popcorn and Coke, too. Eat something before you go and drink water if you get thirsty.
Watch for free events. Check the newspaper and Internet for concerts, open houses, festivals, library events and other community gatherings in your area.
Look for hidden fees. Always read the fine print. Look closely at your statements and bills and take note of what kind of fees you are paying out.How to Save a lot of Money in 2009 in Simple Ways
Say no to the free credit card. Just about everywhere you go, there's somebody trying to get you to sign up for their credit card. A free gift or a ten percent discount may be appealing, but these little freebies can hurt you in the long run. Even if you never use the card, the application alone can bring down your credit rating.
Trick Your Toilet Flush. There are toilets that reduce water consumption each time you flush, but they're more expensive. Plus, if your toilet works, who wants to pay to replace it? Instead of buying a new toilet to conserve water, you can just displace the water in the tank. Put in a brick or a soda bottle filled with water and it will use less water per flush, and not cost you anything.
Flush Less and cut down on water bills. If you want to, you could flush your toilet less. Don't flush if you've just blown your nose and tossed the tissue in the water!
Capture Wasted Shower Water. Do you have to run your shower for a few minutes before the water heats up enough to step in without screaming? Put a bucket in to capture the cold water while you wait for it to heat up and you can use it to water the plants or wash the floors.
Every three months or so, vacuum the condensor coils under the refrigerator. If they get built up with dust and dirty, the refrigerator has to work harder to keep your food cold.
Your refrigerator and freezer will require less energy to maintain the coldness if they are full of food. The food itself will help maintain the temperature. This is why an empty freezer uses more energy than a freezer that's full of frozen goods.
Buy a laptop instead of a PC for your next computer and you'll use far less electricity.
Idling the car will use a lot more energy than turning it off and turning it back on. If you're sitting for longer than a minute, just shut down the engine and start it up again when you're ready to go.
Grocery bags and other plastic shopping bags are good for way more than one trip home from the store. Use them to line small trash containers and save money on trash bags.
Purchase and use rechargeable batteries instead of replacing dead batteries with new ones every time. Keep enough on hand to have a few spare sets already charged and ready to go.
If you've got kids in school, you've got a lot of paper. They come home with a stack of announcements, drawings and worksheets daily. Don't just read and toss- flip them over and let the kids use them to draw or paint on the other sides, too.
Speaking of conserving paper, cut a stack of paper that's used only on one side into squares. Staple on the top corner and use for grocery lists, to do lists, or taking phone messages.
When you're ready to throw out your toothpaste, squeeze, flatten, press hard to get just 1 or 2 more uses from the tube.
Have friends over for dinner this weekend instead of eating out. Each month rotate who will host the dinner party.
Watch out for expiration dates on perishable goods. This one seems intuitive when you read it, but I am surprised at how many people do not pay attention to expiry dates. No point getting a gallon of milk if it is going to turn sour within a couple of days. Same goes for meat, eggs, yogurt, spreads, frozen items, deli/bakery items etc. Some people say you can use a few items a few days after expiry – but I personally value my health more than money and would rather avoid buying such items in the first place.
Buy in bulk whenever possible. When it comes to non-perishable items, buy in bulk whenever you find something on sale. The items I usually stock up on are, cereals, tinned goods, rice, beans, pasta, toothpaste, body wash, shampoo, toilet paper etc. For such items, shopping at warehouse stores like Big Bazaar, Le Marche, etc can save you quite a bit of money, provided you stick strictly to your shopping list when you shop at these places.
Buy generic products whenever possible. Does it really matter whether your cereal is made by Kellogg's or is the store brand? Does it matter if your milk is Nestle or the store brand? For a few things (like soda in particular), I prefer brand name products. For others, I do not mind generic store brands if they can save me money. Find what works for you and switch to generic brands for at least a part of your grocery list.
Avoid ATM fees. Be aware of the ATM withdrawal fees charged by your bank. While some banks waive fees for all ATM transactions on any ATM machine, most don’t. So be sure to use only those ATM machines where your bank will not charge the fees, or withdraw directly at your bank.
Avoid credit cards with annual fee. Credit cards with their cash back bonuses and reward points are a great way to save some money. Just make sure that the card does not charge you any annual fees! There is no dearth of cards that offer fee-free reward plans, so there really is no reason to pay the annual fees.
Avoid impulse buying. Make it a habit to avoid impulse buying. Many of the things you want to buy do not seem all that necessary, if you only you wait for a day or two. Also, waiting means you will be able to check prices and make an informed decision to buy it at the best possible price.
Bottle your own water. Drinking water is good for your health. I always make it a habit to keep some at my desk at all times. Bottled water is the most convenient since it can provide protection against accidental spills. That said, buy bottled water only once in a while, and then reuse that bottle to fill your own water. If you are not happy with tap water, invest in a Eureka Forbes Filter – in the long run it can save a lot of money.
Keep your car as long as possible. When possible, try to keep your car as long as possible. Find the balance between the money spent on repairs versus the monthly installment on another vehicle and choose to run your old car as long as the repair costs are low.
If you like watching movies at the theater, go before 1pm. This is one of our soft spots when it comes to spending. We really like watching movies in the theater with the big screen and the great sound effects. But instead of paying 150 a pop for the ticket, we usually go before 1pm when the tickets are a little less expensive. Also, for movies that we don’t absolutely want to watch right away, we just wait until it screens on the discount theater where the tickets are 50 a pop. We avoid the temptation to buy snacks, by usually going for a theater some time soon after our lunch or sometimes sneaking in our own snacks in the purse.
Plan vacations ahead of time. Vacations are a necessary part of saving our sanity in the busy lives that we lead. But vacations are also a huge drain on the family finances. You can cut the cost of a vacation significantly by planning and booking ahead of time. Bookmark travel sites for finding inexpensive airfare, hotel etc. and book at least few weeks in advance. Use tripadvisor.com and other such sites to do your research.
If you have lavish friends who buy a new car every other year, have large screen TVs and every other conceivable electronics gadget, eat out at fancy restaurants every other night and just live way beyond their means, keep the distance. They may be nice people and mean you no harm, but hanging out with such people often can lead to a lot of unnecessary desires and discontent. What’s more important – your friends or your peace of mind?
Don't wear makeup, use less cologne or after-shave, use less perfume or deo, less shaving cream, shave once every 2-3 days rather than everyday and you save another Rs.200 or more each month.
I use a simple shampoo and conditioner, and it's always from a sale. No hairspray, gels, shelacs, creams, lotions, etc.
I use the internet to review an item's quality and price before I make a purchase. This is a real time and money saving tip.
I try not to wash dishes under running water. Filling the sink saves water and soap.
I don't go to movies unless it's something really worth watching on the big screen. The last one I saw in a theater was Gladiator, and yes, it was worth it. Before that, it was DDLJ, and no, it wasn't.
We never use an ATM or any other banking service that charges fees.
We only eat in restaurants or get takeout maybe once a month or even 2 months. We cook at home every day.
We only run the dishwasher and washing machine when it's full.
We rarely buy CDs or DVDs anymore - we download most of our music. The super high speed internet pays for itself between the free music and all the research we do on it to save money.
We use a digital camera for photos and ONLY print out a very select few!
Switch your bank accounts to a bank that respects you. You shouldn’t be spending your hard-earned money on maintenance fees - you also should be earning some serious interest on your checking and savings accounts.
I am repating this again - Turn off the television. One big way to save money is to watch less television. There are a lot of financial benefits to this: less exposure to guilt-inducing ads, more time to focus on other things in life, less electrical use, and so on. It’s great to unwind in the evening, but seek another hobby to do that.
Make your own gifts instead of buying stuff from the store. You can make food mixes, candles, bread, cookies, soap, and all kinds of other things at home quite easily and inexpensively. These make spectacular gifts for others because they involve your homemade touch, plus quite often they’re consumable, meaning they don’t wind up filling someone’s closet with junk. Even better - include a personal handwritten note with the gift. This will make it even more special than anything you could possibly buy down at the mall, plus it saves you money.
Master the thirty day rule. Whenever you’re considering making an unnecessary purchase, wait thirty days and then ask yourself if you still want that item. Quite often, you’ll find that the urge to buy has passed and you’ll have saved yourself some money by simply waiting. If you want, you can even keep a “thirty day list” where you write down the item and the day you’ll reconsider it, but I prefer just to keep this one in my head - that way, I often just forget about the unimportant things.
Instead of throwing out some damaged clothing, repair it instead. Don’t toss out a shirt because of a broken button - sew a new one on with some closely-matched thread. Don’t toss out pants because of a hole in them - put in a patch of some sort and save them for times when you’re working around the house. Simple sewing can be done by anyone - it just takes a few minutes and it saves a lot of money by keeping you from buying new clothes when you don’t really need to.
Don’t spend big money entertaining your children. Most children, especially young ones, can be entertained very cheaply. Buy them an end roll of newspaper from your local paper and let their creativity run wild. Make a game out of ordinary stuff around the house, like tossing pennies into a jar, even. Realize that what your children want most of all is your time, not your stuff, and you’ll find money in your pocket and joy in your heart.
Call your credit card company and ask for a rate reduction. Take any of your credit cards that are carrying a balance, flip them over, and call the number on the back. Tell them that you want an interest rate reduction or you’ll take your business elsewhere. If the first person you talk to won’t do it, ask to talk to a supervisor.
Drink more water. Not only does drinking plenty of water have great health benefits, water drinking has financial benefits, too. Drink a big glass of water before each meal, and not only will you digest it better, you won’t eat as much, saving on the ol’ food bill. You’ll also find yourself feeling a bit better as you begin to get adequately hydrated (most Mumbaikars are perpetually somewhat dehydrated).
Cut back on the convenience foods - fast foods, microwave meals, and so on. Instead of eating fast food or just nuking some prepackaged food when you get home, try making some simple and healthy replacements that you can take with you. An hour’s worth of preparation one weekend can give you a ton of cheap and handy meals that will end up saving you a lot of cash and not eat into your time when you’re busy.
Plan your meals around your grocery store’s flyer. Instead of just planning your meals based on a cookbook or whatever you can dream up, plan all your meals around what’s on sale in your grocery store’s flyer. Look at the biggest sales, then plan meals based on those ingredients and what you have on hand, and you’ll find yourself with a much smaller food bill than you’re used to.
Do a price comparison - and find a cheaper grocery store. Most of us get in a routine of shopping at the same grocery store, even though quite often it’s not the one that offers the best deals on our most common purchases. Fortunately, there’s a simple way to find the cheapest store around. Just keep track of the twenty or so things you buy most often, then shop for these items at a variety of stores. Eventually, one store will come out on top for your purchases - just make that one your regular shopping destination and you’ll automatically save money.
Don’t spend money just to de-stress. Quite often, I used to spend money just to wind down from a stressful day at work. Instead, I’ve found that I quite often feel much better by going home and taking some quiet time just to stretch and then meditate. I end up feeling much more together, happy, and ready to face an evening with the kids in the right mindset than I ever would by just blowing some cash after work. Instead of spending to de-stress, try some basic meditation techniques, stretching, or yoga and see how you feel.
Keep your hands clean. This one’s simple - just wash your hands thoroughly each time you use the bathroom or handle raw foods. You’ll keep yourself from acquiring all kinds of viruses and bacteria, saving you on medical bills and medicine costs and lost productivity. That’s not to say you shouldn’t explore the world and get your hands dirty sometimes - that’s good for you, too - but basic sanitation does help keep the medical bills away.
Reevaluate the stuff in the rooms in your house. Go into a room and go through every single item in it. Do you really need that item? Are you happy that it’s there, or would you be just fine if it were not? If you can find stuff to get rid of, get rid of it - it just creates clutter and it might have some value to others. You also improve the perceived value of your house - and you’re likely to get a lot of cleaning done in the process. It’s a frugal living win-win-win.
Master the ten second rule. Whenever you pick up an item in order to add it to your cart or to take it to the checkout, stop for ten seconds and ask yourself why you’re buying it and whether you actually need it or not. If you can’t find a good answer, put the item back. This keeps me from making impulse buys on a regular basis.
Eat breakfast. Eating a healthy breakfast fills you up with energy for the day and also decreases your desire to eat a big lunch in the middle of the day. Not only that, breakfast can be very healthy, quick, and inexpensive. A bowl of oatmeal in the morning is often the one thing that keeps me from running out to eat an expensive lunch later in the day - and it keeps me peppy and full of energy for the entire morning instead of in a coffee-laced daze.
Learn how to dress minimally. Buy clothes that mix and match well and you’ll not need nearly as many clothes. If you have five pants, seven shirts, and seven ties that all go together, you have almost an endless wardrobe right there just by mixing and matching. This is exactly what I do in order to minimize clothes buying and still look professional - I just mix and remix what I wear by using utilitarian clothes options to begin with.
If something’s broken, give a fair shot at repairing it yourself before replacing it or calling a repairman. Get a handyman’s book or advice from the internet and give it a shot yourself. I’ve fixed clocks, air conditioners, and DVD players by doing this before, saving significant cash by saving on a replacement or on a repair person.
Use a simple razor to shave. I’ve been a big advocate of the basic safety razor for a long time, but that’s just one piece of the puzzle. For “normal” shaves, I just shave in the shower and dry off the blade afterwards, using just soap for lather - incredibly cheap, since I only swap blades once every few weeks. The real moral of the story? Use a simple razor - not an expensive electric one that stops working in three years - and shave your face when it’s wet. You can get a very good shave with some practice and save a lot of money over the long haul.
Encourage your friends to do less expensive activities. This is often a tricky thing to do, but there are a number of techniques you can try. My favorite one is to be the first one to suggest something - that often gives you the power to steer the group towards things that are cheaper. If you can convince your friends to come home for dinner and a movie instead of going to a multiplex and fancy restaurant, those 500 rupee notes are going to stay in your pocket.
Buy a smaller house. I currently live in a 700 square foot house with my wife, mother and 1 kid. Frankly, it’s just the right size for us - if anything, it’s a little big. We often find ourselves in the same room in the house, just surrounded by empty space. You don’t need a giant place to live. Instead, buy something more modest and you’ll find yourself with plenty of room - and still plenty of cash in your pocket.
Don’t overspend on hygiene products. For most people, inexpensive hygiene products do the trick - for example, I just buy whichever toothpaste is the cheapest, and the same goes with deodorant and the like. The key is to use this stuff regularly and consistently - bathe daily, keep yourself clean, and you’ll be just fine. No need to buy a Rs.200 facial scrub if you actually scrub your face properly.
Exercise more. Go for a walk or a jog each evening, and practice stretching and some light muscle exercise at home. These exercises can be done at home for very little, meaning you’ve got an activity without a lot of cost, and the health benefits are enormous. Just set aside some time each day to get some exercise, and your body and wallet will thank you.
Keep a record of your expenses. What you save falls between two activities and their difference: how much you make and how much you spend. Since you have more control over how much you spend, it's wise to take a critical look at your expenses. Write down everything you spend your money on for a couple weeks or a month. Be as detailed as possible, and try not to leave out small purchases. Assign each purchase or expenditure a category such as: Rent, Car payments, Phone Bill, Cable Bill, Utilities, Gas, Food, Entertainment, etc. Keep a small notebook with you at all times. Get in the habit of recording every expense and saving the receipts. Sit down once a week with your small notebook and receipts. Record your expenses in a larger notebook.
You can watch cable television through your computer using a TV tuner card. Make sure your desktop or laptop has a DVD/CD player and you can also watch your favorite movies. Your laptop has graphics equal to most HDTVs, so enjoy.
Nearly as essential as the TV is the stereo. Today’s computer speaker sets have clear high and midrange sounds with clean bass. You should be more than satisfied using your computer as the stereo. If you have your music library all set up in iTunes all you have left is to outfit yourself with a decent set of speakers and you still have saved money.
Wash laundry in cold water and you'll save roughly 5 rupees a load. That's over Rs.100 a month.
Cook more meals at home and turn last night's dinners into today's lunch.
Plan a week's or month's worth of meals to cut out spontaneous grocery trips and impulse buys.
Learn to cut up a chicken; buying a whole chicken is cheaper than buying parts.
Give yourself a cooling-off period before purchasing anything that isn't a basic need. Can you do without it? Can you make it?
Don't shop as entertainment. Or when you're hungry or depressed.
Make your own household cleaners. With baking soda or white vinegar you can clean many things. For a no-streak glass cleaner: mix \ cup white vinegar, 1 tablespoon cornstarch, 1 quart warm water. Apply with a sponge or pour into spray bottle and spray on. Wipe dry with crumpled newspaper, buff to a shine. Use crumpled newspaper instead of paper towels for lint-free results.
When traveling, stay at hotels that offer free breakfast. If there's a microwave or fridge in the room, look for a nearby grocery store. Even if you dine out for most meals, pick up a few snacks and you'll save vending machine costs, not to mention calories.
Cut your cable or satellite TV. Keep your Internet connection and watch new and classic shows on Web sites such as YouTube, Hulu and NBC.com.
Seek inspiration. Get thee onto Google Search and type in "how to save money", "living cheaply," "frugal living" and "voluntary simplicity." Youll find a gazillion Web sites devoted to living on less, including thefrugalshopper.com and simpleliving.net.
Cut your own hair or cut it at the parlous once every 3-4 months. Ok, so the teacher wife cant do this, but I can too, I barely have any as it is!
Spend all your time blogging, chatting, doing research, playing games on the internet so you dont leave the house and spend money.
Get your news from the internet and not newspapers - save money and trees. I have been reading Google News for a few years now and I have probably saved over 25,000 by unsubscribing to Mid-Day, Indian Express and the Sunday Observer. Cancelling my Reader's Digest subscription was a blessing as well. I now read it free online on their website.
Use Open Source software when possible. I use GIMP instead of Photoshop. GIMP is free; Photoshop ain’t.
Buy energy efficient appliances. Look for the Energy Star on appliances and consider the annual energy cost before buying. More efficient appliances cost more, but you make up the extra cost and then some over the life of the product.
Use prepaid cards for your cell phone. I personally have been using prepaid and I am fully in control of how much I use the phone. I am shocked to see some of my friends getting phone bills running into a few thousand rupees almost every second month and quitely smile when I refill my phone with just Rs.400 or less worth of recharge money.Simple Ways to Save even more Money
Stockpile staples when prices are low. Need I say more?
Scrape out food jars to use the last little bit.
Eat less. The average Mumbaikar eats too much.
If your kids complain about generic cereal, put the generic in a name-brand box. They’ll never know the difference!
Make your own baby food.
Stay home as often as possible.
Turn off the engine and coast to a stop. Only do this if you know your car and know what you’re doing. It could be unsafe, depending on the car.
Fill up when your tank is half empty.
Turn off every electrical item at the plug every night. Putting everything on power strips makes this easier.
Keep the lights off during the day.
Take shorter showers. Save on hot water costs.
Turn off the PC if you won’t be using it for an hour or more.
Use nightlights in the bathroom, so if you have to use the bathroom at night, you don’t have to turn on the light.
Have your young children shower with you, instead of giving them separate baths. Save on geyser or heater costs.
Use rechargeable batteries for electronics and toys. Store batteries in the refrigerator. They last longer.
Do repairs (paint touch ups, sewing, etc) one day a month. If you keep things in good working order, they last longer.
Read newspapers online. Save on money and paper. Visit timesofindia.com for a free copy of the Times of India every single day.
Avoid shopping when hungry. You will end up buying more and eating something expensive at a costly restaurant at the supermarket or mall.
Switch to a lower Internet speed package. That's only if you are paying above 1000 rupees a month for it. You can get pretty good speeds on cable internet connections for under 600 rupees a month.
Have an expert check the earthing and insulation in your house to make sure it is adequate. If it is not, insulate where needed. You can do open areas, such as the attic, yourself. It will save electric costs.
Study your wardrobe, determine your needs, work out a clothing budget, and stay with it. Clothes bought on impulse rarely fit in your budget or your wardrobe.
Know how to spot a bargain. When you buy a garment, check its construction, care instructions, fiber content, and other label information. Be sure it will last and will be easy to care for.
Make your own draperies, curtains, spreads, slipcovers, and table covers.
Strive for a simpler lifestyle. This means owning fewer nonessential things and having less to clean and maintain. Buy less clutter and junk.
Teach children proper care for clothing, toys, furniture, and equipment so replacements, repairs, and maintenance will be reduced.
Beware of little expenses. "A small leak will sink a great ship."
Be sure the time is right for the best price. It's oftentimes not what you buy but when you buy it.
Set aside a realistic emergency fund equal to 2- to 6-months take-home pay.
Stop trying to compete with the stuff your neighbor owns. There is real freedom when you go to sleep at night knowing that you may have less but you don't owe anyone a dime.
Teach your children (and yourself) how to fly a kite instead of going to the expensive arcades or movie theatres.
Watch the cash register. It is estimated that up to $2.5 billion per year is made in scanning errors in USA alone. That's a lot of money left on the check-out counter. Supermarkets often put items on sale at prices that don't always get to the register. Also, checkers can easily make mistakes when making entries. Check your receipt carefully.
Modern supermarkets, indeed all stores, are designed from top to bottom to make you want to spend. Nothing is left to chance. Popular items like milk tend to be at the back of the store, cheaper items are placed low and high on the shelves and the more profitable/expensive ones are at eye-level. Most stores advertise “loss leaders”, extremely inexpensive staple goods to get you into the store where it’s hoped you’ll fill your cart with normally-priced items. Also expect tinted lights above meat and produce, automatic sprinklers and mouth-watering displays. Remember that the basic foodstuffs are usually located along the outside walls and more processed foods are on the inner aisles.
Stores feature chocolates, bubble gum, single serving pies, cans of soda and other items at the checkout that are usually much more expensive. Relax, you’ll be home soon enough.
Use less toothpaste - Really, do you need to fill the whole toothbrush with Colgate? You can get away with half or even a fourth of the toothpaste it takes to cover the brush and still have pearly whites. Again, this stuff foams for a reason.
Reuse your towel the next day - Growing up, everyone in the family (5 people) tossed their used towel in the hamper every day (and they still do). Since college, though, I’ve gone from using the towel to dry off just once to at least 5-7 days. Honestly, I can’t see why my family still won’t reuse their towels when they’re complaining about the water and power bills. When you’re washing over 30 towels a week (4 adults, 2 kids), you have to wonder where that water and power is going.
Reuse your paper - You don’t need to toss a sheet of paper after you wrote one word on it. Use every square inch of that sheet, and then recycle it when your done.
When it’s daytime, you can probably do most of your chores and even read by using the daylight. No reason to waste electricity and lightbulbs when the sun is doing all the work for you for free!Why You Should Save Money
Now, that you have learnt how to save money it is imperative that we learn why we are saving this money in the first place.
First of all, 2009 is the year of the recession. Need I say more?
Secondly for Emergencies. If there's one certainty in life, it's that unexpected things can happen at any time. Whether it's a natural disaster, an unplanned illness, the loss of a job, or a bad investment, the financial repercussions of an emergency situation can be debilitating if you aren't properly prepared. A well established savings account can help prevent a financial crisis when these situations arise.
Thirdly for Debt Prevention. The main reason that people go into debt is because they make purchases that they can't afford. In these instances, they usually turn to credit cards (which charge high interest rates and are often hard to pay off). A well-funded savings account can allow you to purchase the items outright and avoid the pitfalls of borrowing money.
Lastly to Plan for the Future. Everyone has something that they are striving for. Whether it's money to buy a new car, pay for an education, or fund an early retirement, many of the things that we want can end up costing a good deal of money. An efficient and disciplined savings plan can help you achieve those goals sooner and without the drawbacks of debt.
Now that you have learnt how to save money through some pretty easy or simple ways I have just one questions to ask you before closing my "money saving" report for 2009 and that question is "Are you going to put some of these tips into action right away or are you just going to click on the "close window x sign" on the top right hand corner of your computer screen and say "oh well, the article on How to Save Money in 2009" was great but I don't really need much help in saving money.
I need to save money for a better quality of life and a happier future and the harsh reality is that so do you. Thanks for Reading this far. And, here's hoping that all of save & earn a hell of a lot of money in 2009 and beyond.
You may send this to your colleagues and friends by clicking on the 'Email' link on the "Share" button below or you can Digg It and help others save money in 2009 as well.
My Reasons for Writing this Article
I am certified Numerologist from Bombay Adult Education Society. I really LOVE playing and working with numbers and money is all about numbers. I have seen a drastic meltdown in the Indian economy in the last few months and I want to help people and help myself save money to the tune of over 2 lakhs per year!
If you would like me to help you come up with a plan for your future years or help you manage your money better in 2009 then get in touch with me through the link at the bottom of this page.
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