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04 Jan


"Can money buy happiness?" - This has been a common debate topic for several decades now. While this question has never been answered, we all know for sure that money can buy you a comfortable life.

Now the question is, "How do you spend your money?" Well, it is all about smart spending. You can spend on everything that you need in life, and maybe a bit more to further increase your comfort. On the other hand, it is important to save as well, this would help ensure tomorrow's comforts. Here is a list of smart ways to spend less, and maximize the value of every penny you spend.

Smart Ways to Spend Less

  1. Buy experiences, not 'stuff': A Louis Vuitton bag might just be equivalent to 3-4 short trips. Trips where you can meet new people, experience different cultures, learn more about the very planet you live on, and perhaps discover yourself even more. Whereas, all you can do with that bag is throw your belongings in it and show it off to your friends. We know you are smart enough to know which one to pick.

  1. Don't spend big money, especially if cheaper alternatives are available: Do some research before making any major purchases. Chances are that cheaper substitutes or alternatives are almost always available in the market, they just need to be found. Sometimes cheaper alternatives may suit your needs better. Make wise choices and save hard earned money!

  1. Buy things during sales: Think about it, there are so many e-commerce websites coming up these days, giving the retail shops a tough time. And what is a popular way to compete? Sales and discounts! End of season sale, winter sale, summer sale, Christmas sale, Diwali sale, the list goes on. Keep an eye out for sales and save big bucks.

  1. Spend on what matters to you: There are a ton goods and services out there, but for most of us only a limited set matters, such as a piece of jewelry, which could have emotional value. You could spend a little more on such things.

  1. Understand your cash flows: If you are earning INR 40,000/- a month and living alone in an expensive city like Mumbai, with not much savings. You are earning just enough to survive in that city. Does it make sense for you to grab the newest iPhone? Sure, there are EMI options available. However, even with an EMI, such expensive items should be avoided, one should closely examine your income trends and then plan such big ticket purchases.

  1. Learn to say "NO": Every brand tries its best to lure you with its out-of-the-box marketing campaigns. They may even offer the best products, the best quality, and the best deals. Yes, you would be saving big money too, because of the discounts, but do you really need that product? If the answer is NO, then learn to say it.

  1. Limit monthly bills: Switch off the lights, fans and other electrical devices when you leave the room, avoid driving for shorter distances, walk instead. Cutting down on such expenses can help reduce monthly spends and increase your savings.

  1. Automate savings (ECS, Direct Transfer): You must opt for automated deposits of a fixed amount from your salary to your savings. This helps reduce ready cash availability resulting in lower overall spending. This option is very useful for those who have a higher tendency to spend recklessly.

Money is not everything, but it is very critical to survive. One should manage one's money carefully, spend only on essentials and a few luxuries but definitely save for a rainy day. Managing your money is your responsibility and no one else can do this for you.

Did You Know


The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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