Don’t save what is left after spending; spend what is left after saving.
There’s a hidden message behind what Warren Buffett said here – a subtle, understated reference to the fact that money is not really the means to an end, but rather the end to all means and the sum-total of all our efforts. Honestly, we put a lot at stake – probably all our priorities – when we go about the ‘business’ of earning money. It’s the 24X7 vigil around our laptops and mobile phones, that dreary, forced early-morning drive to the office, those painstaking, heavy-on-the-heart-and-brain cost negotiations with clients, those extra hours spent@work on the weekend, that long-planned family outing you missed because you had to take an out-of-business-hours office call. It’s an opportunity cost unlike any other. That’s precisely why we must treat our earnings with utmost care; giving our money its due by spending it wisely, prudently and efficiently. Here’s where developing a savings-oriented approach to life becomes truly important, adopting a penny & pound-wise mindset to ensure that our money works for us, and not the other way around (at least, not always 😊).
So, what’s the magical mantra to start saving, irrespective of the stage of life we are in? The answer lies in following a simple, common-sense driven approach towards money. This little to-do list below can get you started and provide a survival kit on how to make the most out of each penny earned:
Follow a monthly/weekly/daily budget
That’s right, following a budget never hurt anyone. Breaking it down to basics will help you plan your spends and savings in a way that works best for you and your life situation.
List down your planned expenses vs forecasted income
If you’ve not been doing it already, start it today. Seeing your expenses vs your earnings in real-time will keep your spend-buttons on alert mode, always. For starters, download a personal financial app (like Walnut) and get complete visibility on your financials to plan for rainy and sunny days alike.
Buy it only if you can’t live without it!
OK, we agree that we took this a bit too far. But just to put things in the right perspective, purchase something only if you see true value from the product / service which you plan to buy. Don’t follow the masses blindly – spend money wisely!
Invest in yourself
That French Perfume bottle will go empty one day. The Swiss Watch may get slower over time. That pair of branded shoes will also run its course and get damaged. But one purchase that which will never stop giving you returns is the one you make for yourself – invest in money-building schemes, securities, stocks, and other assets which help build your financial profile, and see your money bloom!
Remember, money begets money.
Keep an eye on that discount: wait for the opportune moment
Wise men say, only fools rush in. And, what do the prudent ones do? They wait and strike when the iron is hot. That should precisely be your approach too. At a time when brick-and-mortar stores are ceding space to virtual super-markets which pass on a host of cost-benefits to the consumer, adopting a wait-and-watch approach towards planned purchases will help you get the benefit of a super-hefty discount, when the season of sales comes calling!
Buy online – Scan the virtual marketplace for the best deals
Building on the above tip, buying online is the most practical, prudent and cost-efficient option available today. Let’s make the most of living in the digital generation, where you can literally get what you want, at the price you want, where you want and when you want it. With virtual marketers getting ready to offer the moon in a platter to you, don’t hesitate to cut the deal at a price which no brick-and-mortar store would be able to compete with!
Counting on an unpredictable tomorrow vs Addressing your priorities today: Take a considered call
There’s that long-pending family vacation which you’ve been dreaming about. What’s more – you have also decided to keep away a certain amount every month towards funding that goal of yours, possibly after a year. But, what if your best-intended plans go haywire, and you end up saving a fraction of what you had originally planned for. What do you do: do you simply shrug it off and willingly kill that dream? Or, do you take a slightly different route and opt for a loan?
The answer is both a “yes” and a “no” depending on your specific situation. For a select few who stick to a tightly-controlled budget, it’s quite possible that they can save enough to fund their dreams at a later point in time. But, for many who find it difficult to stick to a very defined line of expenses and are slightly impulsive regarding their purchase decisions, its perhaps a wise option to take a loan and fund their dreams today, instead of waiting for a later date that just might not come.
Let us give you small piece of advice: if you think that you are a Financial Ninja who’s got it all covered to save exactly what she needs for the future, then taking a loan wouldn’t be the most practical or cost-effective option. But if you are like many of us mere mortals, who would much rather live your dreams today by taking a loan with a structured, honest pay-back plan, we will be happy to help you! Even though it would imply a slight premium, you will have the flexibility to pay back the amount on even terms, plan your savings in a future-proof manner (knowing your exact payment liabilities much in advance) and, most importantly, live the way you want to live – making the most of today while keeping an eye on tomorrow!
That’s where OYE brings win-win propositions to your life. As your partners, we can help you Live Life without breaking your bank or hedging on an unpredictable future! Download our app, take a simple One Year EMI Personal Loan with no hidden charges or invisible overheads, and see your dreams turn into reality with just a click!
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