What are some money saving tips?
Automate your savings : This is by far the best money saving tip.Free money lying in you account find its (useless) purchase!.I find recurring deposits the best tool , second one being SIP.Always go for goal based RD.Want a Royal Enfield, don’t take loan,instead get an RD of EMI equivalent amount.This also confirms with the long tested theory of delaying the gratification.Which is the one habit that can transform your world forever?
- Go bulk in purchase ,full talk time recharge : We all know the trick. let me give it a better perspective.Suppose you recharge for 12,000/- in one year (in total). On every bulk recharge (full talk time) you save minimum 10–15 % (usually taxes + processing fees). Thus 10% savings is 1200/- per annum.Combine this with DTH recharges, various subscriptions such as broadband, gym,newspapers etc. can save you a good amount every year. Suppose you purchase house hold items like ration, grocery and all subscriptions combined worth 200,000/- per annum and thus saving 10% only, you save 20,000/- per annum which becomes 200,000/- in ten years!. Given you get a return of about 10% on savings by any standards your investment (savings) gets doubled in 10 years or less. Thus total savings = 400,000/- in ten year and that too doing nothing!
- Credit card : Credit cards are a boon if used correctly.I have three platinum credit cards and their billing cycle is such that I get intervals of 10 days between paying each bill.I arrange my major shopping in such a way that I get maximum amount of time to pay bills.This ensures that I get interest in my saving account as well as get my job done.But a lot of discipline and discretion is required to stop impulse buying.
- Grace period to earn interest : Every insurance bill allows grace period of 75 days.I always set my automated payment instruction accordingly.This gives me more interest on my money, automatically.
- Wait for sale : I love sale and discounts.I wait for festivals and keep a check on prices for items which I have to buy.Suppose their is a 50% limited off sale for some items like shoes (end of season sale),I purchase them even if I don’t need them now.I do future shopping as my needs are certain but sales are not.I always have large collection of future apparels, shoes,watches,pens,stationary etc grabbed from these timed sales. I save about 30% on my spends this way.
- Buy quality : Buying quality is always a big time money saver.You forget the cost while you remember the quality.
- Order grocery online to save delivery charge
- Go for the second best : Second best or last year model is cheapest at the launch of new model.The price is 50% less and the functionality is 90%. True specially for mobiles and electronics.The best always has a premium of 20–25% to cover initial costs and en cash instant euphoria and market hype.Further waiting for just 2–3 months can give you better deal on same mobile by 20–25%. Patience is rewarding.
- List and plans for shopping : Listing items before shopping saves hell lot of time and impulse buying (which we all regret after some time). Also it has been well documented that going to shopping with stomach full keeps your wallet full also!
- Counter bargaining by showing competitive prices online : Market research is very important. In products like commodities and electronics where margins are usually high and there is always an inbuilt discount of 10–20%(if you can get it). I always shop for mobiles from brick and mortar stores and negotiate using online store prices!. I show them the online price and in most cases get my price and thus instant delivery!
- Bargaining tricks
- Destroy the product image, seem disinterested : More you dislike their product lesser price you ought to pay.Not true in services though but in commodities works very well.Your eagerness is your enemy in retail.
- When you shop, Never show your silver (Chinese proverb) : In several sectors where prices are not fixed like medical profession,it is advisable to maintain low profile. Leave that flashy iPhone and gold chain in you place before you visit.Wear cheap clothes in Doctors shop.You always get best price.Rich customers or rich looking customers are duped most in medical profession.
Originally published at www.quora.com.