How to save money in india

5 Ways to Cut Expenses and Save More Than Rs. 45,000 Per Year

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Summary

There are always small things in our life that make a big difference. Below, I have covered such 5 hacks which look trivial but can combine together to generate a saving of more than Rs. 45K per year.

Hack 1: Switch away from car dealer service stations
Hack 2: Use BigBasket/Amazon Pantry for groceries
Hack 3: Leverage specialized online platforms for targeted shopping
Hack 4: Go for street food
Hack 5: Try Amazon Kindle


Wondering how to save money? It’s simple; cut down on your expenses.

However, when it comes to cutting down on your expenses, don’t focus on the pennies.After all, no one gets rich by saving pennies.

Instead, find out ways to cut your bigger expenses. Reason: you save decent money and it justifies the effort spent.Not just that, the money that is saved can sponsor your other expenses.

Let me share with you my 5 secrets and how I am saving decent sum of money by making just few smart choices.

#1. Move Away From Car Dealer Service Stations

If you have a car which is out of warranty period (typically happens after 2 years of the first purchase date), this hack is for you.

What to do?

Maintaining a car is not a cheap affair. Majority of the cars in india need a partial and a full maintenance service after 10,000 kms and 20,000 kms of mileage respectively.

Put in some effort and find a good local mechanic who can do these regular maintenance activities on your car (like replacing the engine oil, brake oil, coolant, air filter, oil filter, diesel filter etc.).

Especially if you own a Suzuki, Tata or a Hyundai car, you can find a good mechanic as well as genuine spares very easily in the market.

As a matter of fact, spares are available at almost 50% to 75% of the MRP amount in open market (whereas you are charged at MRP for spares at the car dealer).

Plus, you save the costly labor charges (plus 18% GST) which you have to otherwise pay when you go to a  car dealer for servicing.

But the biggest benefit is that everything happens in front of your eyes.

In my case, I own a 6 year old Maruti Ritz Diesel which needs an engine oil replacement at every 10,000 kms and a full fledged service at every 20,000 kms.

My bill for 20,000 kms service adds to around INR. 10,000 if I go to the Suzuki Car Dealer’s service station. My local mechanic does the same service for INR. 500, and the consumables cost me just INR 5000. The best part, the mechanic provide the service at my doorstep, thus saving me a lot of time.

In a typical year, I drive around 20,000 kms, which means I save on the service costs twice an year (around 7k – 8k per year).

And I have been doing this for last 3 years now.

My advise is that you should leverage the local mechanic for most of the car repairs, and run to car dealer only when a major fault happens.

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#2. Make Big Basket do Groceries for You

Applicable if you live in a metro or in a tier 2 city that is served by Big Basket

What to do?

Groceries is one thing which you are going to consume for the rest of your life.

We all tend to rely on our local vegetable seller or the near by kirana store.

These guys serve a limited catchment area and it doesn’t make economic sense for them to offer you deals.

How to save money with BigBasket_2But online players like Big Basket who do bulk purchase and have practically the whole of city as their target population, can offer some very good discounts on your daily needs.

I have been availing Big Basket services for some 6 months now.

On an average, I consume fruits and vegetable worth INR 1000 per week, and I tend to save anywhere between INR. 150 to 250 per order when compared to the local vegetable shop. Then comes the pulses and staples which amount to another INR. 2000 to INR. 3000 per month.

With Big Basket, I easily save anywhere between INR. 600 to 1000 per month. That translates to an average of 10k per year.

However, it’s not just about money. It’s the time and effort that I save which is more important to me.

Big Basket easily saves me anywhere from 6 to 8 hours per month. That’s 2 blog posts worth of effort for me.

(Also, if you can control your impulses, always pay for your online purchases via a credit card. That can help you earn free flight tickets and save further on your travel expenses. Read my detailed blog post on how to get free flight tickets in India using a credit card.)

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#3. Find Online Deals for Baby Products & Diapers

If you have an infant or a toddler, this hack makes lot of sense for you.

What to do?

Baby products like diapers, body wipes, oils etc. are essential yet costly items, especially if you buy them from the local shop.

However, the interesting thing is that they are high margin products. That means you will always find an online player (like FirstCry) offering great deals and discounts on such items.

How to save money with First Cry

As an example, a bag of 72 diapers that costs INR. 999 at the local chemist shop is available anywhere between 700 to 800 with FirstCry. Similarly, a packet of wipes with an MRP of 120 is available anywhere between 50 to 80 rupees on the same platform.

Remember, these are not one time purchases but recurring expenses, at least for first few years of your child.

Diapers and wipes are just the 2 essential things. Over the period of time, you will need milk bottles, teethers, clothes etc. for your baby.

I have already ordered products worth 10k for my 3 months old child, and saved around 3k on MRP. I anticipate my yearly savings to be around 10k, given the rate at which we are consuming.

You can do the math yourself to see the quantum of money you can save by just switching to an online baby store.

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#4. Try street food

Applicable if you frequently eat out.

What to do?

How to save money by eating street food

Are you someone like me who eats out once every week (I fall in this category).

Do you always fine dine?

If yes, make an attempt to try out street food options, at least for one outing per month.

Don’t get me wrong, I am not asking you to compromise on quality.

In every city, there are relatively clean and hygienic street food options that also offer lot of variety.

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A fine dine experience in a city can easily cost upwards of INR. 2000 (on an average) for 2 people. Replace that with street food at least for once a month and you can easily save up to 1500 bucks. Multiply that by 12 and you get the savings you can make per year (around 18k).

 

#5. Shift to Amazon Kindle

Applicable if you are a voracious reader like me

What to do?

How to save money with Kindle
Amazon Kindle e-reader

If you are in a habit of reading physical books, it’s probably time to try out Kindle.

No doubt you need to make a one time investment in Kindle, you benefit in two ways :

  1. e-books on Kindle are priced cheaper than the paperbacks/hard bounds (sometimes as low as 40% of MRP) and;
  2. you don’t need the physical space/racks/almira to store your books. That means there is less clutter.

And then, there are lot of awesome books (sometimes from celebrated authors as well) that you get free on Kindle (like this one on Warren Buffett). You can also consider buying a Kindle Unlimited membership wherein you can read as many books as you like on your device, at no extra cost.

I own a Kindle e-reader and I am super satisfied with the device.

All my leisure and light reading happens entirely on Kindle, and I order physical books only for complex topics where I need to consume lot of stuff (like the books on investment strategies).

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Conclusion

Using these 5 hacks, I easily save anywhere between INR 45k to 50K per year. That’s more than enough to fund my other small expenses.

But more important to me is the time that I save. This time is channelized towards a hobby or some income generating work.

While these are some of my hacks, I won’t claim these to be the only ones.

I would love to know your experiences when it comes to saving on big expenses. If you have one, don’t forget to writing it down in the comments below.

And remember, it’s not that you have to cut down on all your expenses.

Just focus on the bigger ones and your savings from these have the potential to fund some of your smaller expenses.

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Tushar Jain

Tushar Jain

Tushar Jain is a personal finance enthusiast who loves to talk about money, savings, investments and spending. He blogs about financial wisdom and income growth habits at this blog jaintushar.com. Contact him to say Hi.

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