Reducing unnecessary expenses is always worthwhile for a healthier bank balance. Many unknowingly spend extra on daily expenses without realising its long-term impact on their financial health. From dining out frequently and overspending on utilities to impulse shopping and neglecting budgeting, these common habits can drain your finances.
By making some small and strategic changes today, you can save significantly over time. On that note, here are some easy, practical tips to help you spend less without sacrificing your lifestyle.
Adopt the 50/30/20 budgeting rule
One of the most important money saving tips you can follow is the 50/30/20 budgeting rule. According to this rule of thumb, your monthly income should be divided into three parts, i.e., 50% to needs, 30% to wants, and 20% to savings.
You can also adjust these percentages to suit your unique financial situation. If your essentials consume less than 50%, you can reallocate the surplus to savings or debt reduction. Similarly, if you are aiming for aggressive savings or have higher debt, you might shift more into the 20% category.
Maximise savings with the right savings account
An online digital bank account plays a crucial role in your financial strategy. For example, when you choose the INDIE Savings Account by IndusInd Bank, you earn an industry-leading interest rate of up to 6.75% and your savings grow faster. You also get several additional features that boost your savings, such as:
- No minimum balance requirement
- An exclusive 3-tier loyalty program
- Rewards on transactions done via the INDIE Debit Card or UPI handle
- Link your FD and savings account to enjoy FD-like rates and 24/7 liquidity.
Open your online bank account with INDIE today with a 100% digital process. Boost your savings with customised features tailored to help you save on everyday expenses.
Prioritise paying off high-interest debt
Putting high-interest debt at the top of your list is crucial. Such debt, like credit card balances or personal loan EMIs, grows quickly and can overshadow your savings efforts. Paying them first will free up more of your income for savings, investments, and future expenses.
Adopt smart shopping habits
The Indian market is renowned for its festivals and associated sales. Time your purchases around these sales, especially for clothing, electronics, and household items, for considerable savings. You can also shop during end-of-season clearances to get more value.
Compare prices at different stores before making significant purchases and make sure to buy the items you use regularly in bulk. Always ask yourself whether a purchase is necessary before proceeding to checkout. Most importantly, embrace the concept of buying quality items that last longer.
Eliminate unnecessary subscriptions
Many people pay for services they rarely use, such as streaming platforms, software subscriptions, or premium apps. Cancel those you do not need and look for cheaper or free alternatives that can provide similar value.
For your cable and internet services, assess your actual usage first, then consider more affordable plans or alternative services that better match your consumption patterns.
Additional tips to save on everyday expenses
Have a look at more useful money savings tips to save on daily expenses:
| Opt for the right savings account | Choose an online bank account that offers high cashback or rewards on everyday purchases. |
| Use public libraries | If possible, access free books, movies, and online resources instead of purchasing them. |
| Consolidate debt | Lower your interest rates by consolidating multiple debts into one loan or refinancing existing loans. |
| Do zero-based budgeting | Allocate every rupee of your income to specific expenses, savings, or investments to ensure no money is wasted. |
| Perform energy audits | Check your home for energy leaks and inefficient appliances to reduce utility bills. |
| Follow a shopping list | When you go to any store, stick to the list. This is highly beneficial for impulse buyers. |
| Invest, no matter how small | Channel a portion of the money you save from cutting everyday expenses into investments to maximise the efficiency of every rupee saved. |
Key takeaways
By adding these useful tips to your daily routine, you can achieve significant savings on everyday expenses. From budgeting wisely and shopping with a list to prioritising quality over quantity and avoiding impulsive purchases, every step matters.
It is all about adopting a mindset that values saving and recognises the impact of small, everyday decisions on your financial health.