The complexity of the modern world is quite amazing in the terms of income. We get frustrated of our income in either case - be it low or high. The problem that we exactly we suffer from are the problems of saving, investment and expenditure. We try to save a certain part of our salary but we find it quite difficult. Moreover, it leads to anxiety, depression and many more present day problems. We try our best to overcome this problem but the deeper we go, we find ourselves in the trap of a dismal cobweb.
I have some points to make which might help you out of this problem. You may find these points saving your hard-earned money from the unnecessary expenditure.
- Timing: This is the major factor that you must consider when you purchase any commodity or spend your money elsewhere. You have to think and rethink 'is this the right time to make this expense?' Other questions that need to be answered at that particular period of time is what else can you do with that money that time?
- Taste and Preferences: Yeah! You must consider this also. Either it is your test or someone is pushing on you to 'taste' it. Don't always walk the road others point you towards; make your own paths.
- Price: It is a common sense which everyone has. When we look anything for a purchase, we first see the price tag and not anything else. Check and calculate if the price is within your range. Sometimes, we go for the brands that are literally out of our budget. Refrain getting into that category of people who can spend a night on the road to get an iPhone! After you purchase your iPhone from the savings of 2 years, be ready to borrow for internet and call rates...
- Substitutes: If you are making a big purchase, always try to find out substitutes for that good. If you can find something available in the market at a lower price and same quality, you must go for that.
Do you know about partial or visual savings? You must know. I will illustrate it with a simple example. Suppose that Arvind goes to office by public transport daily. He has to spend 50 Rs a day for his commuting. Now, in a month, there are 4-5 days on which Manish meets Arvind in the way and offers him a car ride free of cost. If Arvind spends his 50 Rs that he saved that very day, he is doing injustice to his visual saving! You can save that for aid to your monthly saving, which is the real saving. Every penny you spend on any commodities must yield some satisfaction for you. If it doesn't, then you are wasting your money.