Budgeting is the cornerstone of an individual's financial planning, as a penny saved can become a penny invested for meeting long-term goals.
While there is no dearth of literature, online and offline, on how to budget, here are a few practical tips on how you can save a penny for long-term investment:-
1. Negotiate your home/car loan EMI and house rent rates.
2. Ask for discounts on your home insurance premium.
3. Maximize the use of your society's maintenance facilities.
4. Avoid frequent trips to the market for buying provisions and veggies.
5. Employ a single person for multiple household help.
6. Buy car, life and health insurance online for getting discounts.
7. Car pool with other parents if dropping child to school.
8. Buy uniforms and accessories only as per need of growing children.
9. Combine trips for entertainment and shopping.
10. Consider car pooling for commuting to work.
11. Book taxis and air/train/cinema tickets online.
12. Buy appliances, gadgets and garments during the sales discount period.
13. Switch off modem or dongle when not using internet.
14. Shift to prepaid mobile phone plans if usage is low.
15. Bundle internet and TV from one operator if possible.
16. Choose basic plan with annual discount for satellite/cable TV.
17. Use coupons and discounts while eating out if possible.
18. Pool in dishes for parties at home if possible.
19. Reduce compulsive snacking while watching TV and theatre movies.
20. Use smaller packs for lesser used personal care products.
While there is no dearth of literature, online and offline, on how to budget, here are a few practical tips on how you can save a penny for long-term investment:-
1. Negotiate your home/car loan EMI and house rent rates.
2. Ask for discounts on your home insurance premium.
3. Maximize the use of your society's maintenance facilities.
4. Avoid frequent trips to the market for buying provisions and veggies.
5. Employ a single person for multiple household help.
6. Buy car, life and health insurance online for getting discounts.
7. Car pool with other parents if dropping child to school.
8. Buy uniforms and accessories only as per need of growing children.
9. Combine trips for entertainment and shopping.
10. Consider car pooling for commuting to work.
11. Book taxis and air/train/cinema tickets online.
12. Buy appliances, gadgets and garments during the sales discount period.
13. Switch off modem or dongle when not using internet.
14. Shift to prepaid mobile phone plans if usage is low.
15. Bundle internet and TV from one operator if possible.
16. Choose basic plan with annual discount for satellite/cable TV.
17. Use coupons and discounts while eating out if possible.
18. Pool in dishes for parties at home if possible.
19. Reduce compulsive snacking while watching TV and theatre movies.
20. Use smaller packs for lesser used personal care products.
21. If a 30-year young earner is able to save just Rs.2,000 per month "subconsciously" from them, and invests it in a balanced fund SIP, he will "unwittingly" accumulate a corpus of at least Rs.45 lakhs during his 30 years of earning life.
22. Thereafter, this corpus would enable him to withdraw at least Rs.18,000 per month perpetually during his entire retired life - which will be inflation-friendly as well as tax-free !
22. Thereafter, this corpus would enable him to withdraw at least Rs.18,000 per month perpetually during his entire retired life - which will be inflation-friendly as well as tax-free !
That's what is really called "a stitch in time saves nine" - literally !!