Tripti had never controlled her spending. Even after earning well, she barely had enough money left by the end of the month, let along enough to save. What make her finances even worse was that she also had some loans to repay. So, at the beginning of this year, she made a promise to herself; to be more disciplined and turn her fortunes around. To accomplish this, she decided to adopt some old-school financial habits to have some savings by the end of 2017. Read on to know more about the measures she took.
Keeping a tab on expenditure
Tripti knew she spent much more than she had to monthly. So, she decided to keep a tab of her expenses. This would help her decide what was unnecessary and what was needed. She even downloaded an app on her smartphone that helped her track even the smallest expense. This proved to be a very smart move. With all the figures in front of her, it was easy to figure out where she was spending too much, and then cut down on these expenses.
Opting for auto-pay
The next thing she did was setting up an auto-pay method for her loans and bills. She realised that missing due dates on bills was a regular problem and that it was costing her quite a bit in the form of late fees every month. Setting up the auto-pay method was the perfect solution to ensuring all her pending payments were being made on time, which also worked towards improving her credit score.
Discarding one everyday expense
Tripti had read somewhere that by discarding one everyday expense, she could end up saving thousands of rupees in a year, and found it quite interesting. For her, it was buying that Rs. 150 cup of coffee every morning at the metro station. She found that discarding this habit was helping her save Rs. 750 a week; Rs. 3,750 a month, and a total of Rs. 45,000 a year. Making coffee at home was much cheaper!
Investing surprise cash
When she received bonuses at work, Tripti usually used it on a weekend trip or to buy something expensive, since she considered it extra money. Now however, she decided to invest any extra cash that she would receive in 2017. A birthday cheque from her father went towards her savings, while an increment she received at work was put in a fixed deposit. She expects to make a few thousands on that amount, thus helping her reach her goal of becoming wealthier by year-end.
Tripti had an open car loan and a personal loan that needed to be repaid. She decided to prioritise the high-interest loans, so she reworked her EMI schemes. Now she pays a higher percentage of money towards her personal loan and then the car loan. This is helping her close the expensive personal loan faster, which could help her save a lot of money in the long run.
Smart moves, smart wealth
Tripti did not have to make any extraordinary changes to get on the path to becoming wealthy. Nor did she have to completely change her lifestyle. All she had to do was rework her expenses and become disciplined with how she spent her money. She is still earning the same amount and maintains an almost similar lifestyle. But by making small changes to her everyday spending habits, she has already become richer than she was a few months ago.