Updated: Mar 29
Being cheap is something we all struggle with and end up not knowing where to save and spend. This has been one of the main causes of major financial problems however, I won't say that it marks the top spot. Moreover, it's an aspect that is in your control and not like other unpredictable accidents, diseases, or mishaps happening in life. Therefore, you can control your spending and saving habits to provide you with financial security throughout your life. Let me get one thing straight. I hail from a middle-class family as most of you do and just like all our parents we tend to adapt to their methodologies of being cheap. Moreover, we do all the middle-class things or aspects that any Indian will follow such as saving the plastic covers, buying a shirt or jeans with an extra size than your original prediction that we will grow in the future and will be able to use it.
The aspects of being cheap and saving money are in our blood and here I'm about to justify those from a logical point of view from my experiences.
Best place to be cheap inside your house?
A major part of your income goes to the food items and all aspects that you spend on dining. Moreover dining once or twice a month or in 15 days is OK and considered as an essential part of the life to relax and enjoy with your loved ones. However, you should plan accordingly so that the food that you have already prepared in your homes is not wasted. Furthermore, stick to your budget in spending habits on food products. Moreover, manage the perishable products and commodities accordingly in a way such that they are also not wasted.
Another aspect is sound sleep especially during summer, as of now we are now going on in one of the severe ones and it becomes extremely difficult for us to sleep at night thus we turn on our air conditioning systems. Moreover, it is estimated that most Indians turn on their AC systems at night during the summer days. Let me share with you the tip which I practice to not switch on the AC. I usually take a bath without washing my hair right before going to bed, which will cool down the body thus reducing the heat generated and will offer me a sound sleep.
In addition, I will keep running the fan in my room throughout the night at a moderate speed. It's a fact that the power consumption for a fan is on the lower side in consideration with air conditioning systems. It not only reduces your electricity bills but also is good for the environment as no Chlorofluorocarbons are being emitted of which the air conditioning units play a huge amount in the emission scales. These are some of the aspects which I follow to reduce the money spent in my home. Let me enlighten you with certain money-saving tips I follow to ensure that I have a sound financial holding in my hand as a backup.
How to save your income?
I understand that you all are trying to save as much as possible for necessity which may or may not come in the future. But it's a fact that you should save for the future if any or no mishap occurred. Let me explain how I plan my income and save it for the necessary time. You should be able to save and hold a certain amount of money which is similar to the exact amount and is the total of your current salary for six months. This amount should be in your reach and you can either be deposited as a fixed deposit or a recurring deposit. As many of the Indians tend to store it in gold ornaments or biscuits or coins however, I would advise that not to do this as it will be unmanageable at certain aspects and the rate of gold will vary based on the global rate projected. This may cause you to lose your money and will not provide you with an interest rate.
Being cheap based on your calculations and understanding of the situation or the aspect you spend your money on will directly lead to effective money management which will provide you with financial stability and freedom from debt.