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10 Lifestyle Habits You Never Realized Were Bad For Your Savings

Think about it. Are you spending more than 60% of your monthly income?

Then you should definitely read this article.

Most of us are always on a look out for fast and easy ways to cut down our expenses, and hold on to more cash. Fortunately, by just being more careful about your lifestyle expenses, you can drastically limit your outgoing. Well planned cutbacks can add anything from a few thousand to lakhs to your kitty. And it all starts with something as innocent as that daily Starbucks coffee habit.

So, what are the expenses that are eating away your savings? From cutting down household bills to controlling shopping sprees, you can find many such areas that need food for thought. Do be cautious and think twice about the need v/s want aspect of any expense you are about to incur. 

Today, we will look at 10 expensive lifestyle habits that you can do away with:

1. Friends or Foes? 
Everybody in your circle is buying an iPhone and you don’t want to be the only one left out! So, whether you have to beg, borrow, or steal you also get an iPhone!

If this is your story, it’s time to rethink your lifestyle. Peer pressure is the bitter truth of millennial lifestyle. However, you have to stop and think whether these people are really your friends or foes?

Also, it very likely that most of these people you aspire to become are themselves under huge debt.

Useful tip: Real wealth is when the net worth of your assets is greater than your debts.

2. The world is online. Are you?
If you are still purchasing everything on MRP, you are definitely burning up your savings. Everything you want to buy these days is definitely on discount somewhere. All you need to do is to go on the Internet and start shopping through the various online e-commerce websites.

Useful tip:  Each time you buy a discounted item, just put the amount you saved somewhere and you will soon have a pile of cash of lying around. 

3. Retail therapy is big no-no!
I had such a bad day at work, let’s go shopping! I have a headache, let’s go shopping! It’s a Sunday, let’s go shopping!

Is this you? Do you also like to shop at every excuse possible?

Well, then you have something to worry about. Retail therapy is exciting only till the credit card bills begin to pile up and your savings begin to deplete.

There are people who even break their fixed deposits just because an exciting online sale is coming up. But this is one habit, which without a doubt, eats away a major chunk of your saving .

Useful tip: If you absolutely must shop, plan your shopping sprees with the help of a credit line. Decide your shopping budget before-hand and then transfer only that much amount from your credit line to your account. Convert it into easy EMIs so that you can plan your monthly spends accordingly. This way you save what you have to, while keeping your spends under control.

4. Love Credit Card? But, it hurts to pay back.
Yes, access to credit has become easier, and most of us end-up having several credit cards!

That’s actually not bad.

The problem is when you have multiple credit cards — all used to their max limits — and then you have to spend all your income on paying back the debt. You end up having no money to save, or sometimes dipping into your previous savings just to pay back the huge debt.

Read this to know how multiple credit cards might be affecting you negatively!

Useful tip: If you want to save more, you have to learn to spend less on credit!

lifestyle-habits-bad-for-savings


5. Follow trends, WISELY! 
This must seem like an odd thing to you. Why are we talking about trends here?

Actually, this is something most of us do, without ever realizing how much it could be eating up our savings.

Consider this:

You love to give your house a makeover each time a new trend in unveiled in the market. What do you do? — Whether your pocket allows or not, you go buy it first-hand.

Now, what if you bought something that someone was willing to sell because it did not fit their house, but makes perfect sense for yours? — Well, you end up saving huge amount of money!

Useful tip: Buying second-hand is not something you need to hide. In fact, it is a clear mark of your wisdom and your ability to make a better choice.

6. Gadgets, Gadgets all around! 
You just upgraded your iPhone! What did you get?

Some exciting new features that are hardly of any use to you!

This is true for laptops, iPads and other gadgets too. Whenever you plan to buy, go for the ones which fulfill your requirements. And not something that is a hot property in the market and has more features than you can handle.

Useful tip: Instead of simply upgrading your gadgets, you should spend the money on things you do not already have. In this way, you fulfill your needs without spending twice!

7. Impact of small savings
There might be some expenses that affect your savings, but you don't even know about them.

For instance, you love eating popcorn while watching a good movie at a multiplex. That’s great! But, did you know that if you pre-book these meals while booking your tickets, you get great discounts on them.

Similarly, you cannot do without a Wi-Fi. Right? But, did you spend some time evaluating the merits and demerits of the plans offered by various operators, to choose the best one that suits your need?

For most of us, the answer is a no.

But, why are we talking about popcorn and Wi-Fi plans here? They are small expenses which cannot really impact savings. Right? Yes, they are smaller spends, but they occur on regular basis. If you are even a little bit cautious in your planning, you will definitely save a significant amount over a longer period of time.

8. Choose to walk, when you can!
If you are one of those lucky ones, whose office is at a walkable distance from your home, then why not walk / cycle to work. It is not only pocket-friendly, but also a healthy way of living. 

If it is beyond the limit, take the public transport or go for carpooling. This will help reduce the traffic and pollution as well. You not only save money, but also become a socially responsible citizen.

9. DIY
Do-It-Yourself or DIY is much in vogue these days. While earlier outsourcing your work was considered as a sign of wealth, today it has become a sign of laziness. DIY is the trend, and a good one at that!

For instance, do you actually need the dog walker to take Spot for a walk daily? If you can manage 30 mins everyday out from your busy schedule, then walking will be a good exercise for you as well. 

Similarly, you can review the services of the gardener, three maids for various chores, and many such things.

10. I think I’ll start to save
But, you never actually do it! Well, it’s time to start NOW.

A very important move, is to make sure that a significant percentage of your salary is diverted immediately to a savings scheme, using an auto-sweep feature. This forces you to create a safe and secured future.

Some planning and self-control can go a long way. The savings done is bound to give you a (really pleasant) surprise.

Disclaimer: This post is contributed by MoneyTap.

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