Are you spending too much on something you don’t need? Are you into impulse buying and regreting it later? How do you save thousands every month?
In our previous post, we observed how Nepalese households usually engage in a habit of borrowing rather than saving. It was reported that only 46% of the adult population managed to save last year, this is a worrying statistic given the benefits of saving.
Saving for the future provides one with security, causes less stress when you incur unexpected cost and helps you adapt better to life changes such as marriage, having a child or retirement.
Hence, in this blog post we will present 5 habits you can engage in that will help you save thousands every month!
1. Track Your Expenses
Tracking the amount of spending you incur daily may feel a little overboard but is essential if you want to identify your purchasing habits. Looking back at your expenses helps you understand your triggers and identify purchases that brought you value and those that did not. Knowing how much you spend daily holds you accountable and make you more mindful in the future.
2. Practice The 80/20 Rule
Tim Ferriss the author of the business book “ The 4-Hour Workweek” introduced the world to the 80/20 rule, according to this rule 80 percent of your income/output comes from 20 percent of your activities/input. The same principle can be applied to your purchasing habits as well; narrowing down of the 20 percent of purchases that bring you 80 percent of satisfaction. This form of elimination in your purchases allows for less wastage of money in objects/services that don’t bring great value. Understanding this simple concept of the 80/20 rule will also prevent you from impulsive buying.
3. Go Cashless
According to a research conducted in India account based transfers lead to more savings as opposed to cash spending. Khalti as a digital wallet and online payment gateway, not only allows you to embrace online payment culture but also helps you save thousands every month. Online shopping stops you from impulse buying habit as you tend to research more.
Having cash on hand could often cause for absent minded spending, especially when we exchange that crisp Rs 1000 note and have change on hand. Going cashless will cause for the just the right amount at the right time to be paid without you having to carry the change, avoiding absent minded spending. It restraints you from easily spending your small change as you won’t have any on hand.
4. Avoid Hidden Costs
Usually when buying a movie or a flight ticket we sustain some hidden costs, these cost are often overlooked because it is considered to be minimal. But, when these costs of lets say transportation or grabbing a coffee cause you are waiting for your ticket adds up, it could cause for larger loses. Using cashless options like Khalti will help you minimize these costs, not only does the app allow you to book domestic flights at your convenience it gives you the cheapest options, so there is no need to hurry off to an agent just to get a cheaper seat.
The same is applied for when purchasing movies tickets. Khalti has partnered with most of the movie theatres such as QFX cinemas, Big Movies, Fcube, BSR, Q’s and Mid Town consumers that buy using Khalti. Now you can avoid the inconvenience of tickets running out and the cost incurred to go get the tickets when you buy them through Khalti. Saves both time and money my friends!
5. Find Budget Friendly Options For Your Days Off
Everyone wants to make the most out of a holiday, but this want may come with a hefty price. Lucky for us, Kathmandu valley offers plentiful options where you can enjoy your time off without hurting your finances. For instance, breathtaking monuments, palaces and temples located in all 3 cities provide free sightseeing options letting you enjoy your day without making a big dent in your finances.
What habit of yours do you think you should change to be able to save thousands every month? Challenge yourself today.