Smart tips to cut expenditure and save more

In this article we will learn about some useful ways which will help us in managing our salary in a smarter way. Every working person, be it man or woman should inculcate the good habit of saving. Saving secures present as well as future. This article is mainly about how to reduce expenditure which will directly lead to more saving.


Most of the people can be found saying that 'No matter how wisely we spend our money; there is nothing left by the end of the month.' This means that you need to be wiser than the wise. Spending money at the right time and in right amount is much more difficult than earning it. Following are some ways suggesting, how to save, how to cut expenditure and how to invest.
  1. Start with a little-

    The day you get your salary, keep 5% or 10% aside. Try not to spend this amount. Slowly go on increasing the percentage.

  2. Open a recurring account-

    Recurring account for even a small amount can prove to be very useful at times. No matter how small the amount is, open a recurring amount on your name and invest monthly a fixed amount.

  3. Safe saving-

    Invest your salary according to your nature of work. If you have a commission based or contract based job, do not invest in long term plans. Invest in plans for 3 years or 5 years which return the money with a fixed interest.

  4. Make a monthly budget-

    Though it may seem a little difficult initially but prove very useful if followed. Some expenses are nearly fixed for every month such as, payment of the maids, milkman, newspaper boy etc. Add how much you spend on these. Then make an estimate of how much you spend on grocery items, vegetables, fruits during the month. Keep some extra money other than these if some sudden need arrives and you can invest the rest.

  5. Write down your expenditure-

    Keep an eye on your expenditure. Make a habit of writing down all the expenses during the day before going to bed. Most of the people are always in confusion about where their money disappears. If you can't maintain a diary, feed your expenses in your mobile. Make weekly check of your expenses and try to figure out the items on which you might have spent unnecessarily. From next time, try to avoid those items.

  6. Rate your work-

    Divide your yearly income in months and then hours. This will show you how hard you work to earn money. When you will know the value of your money, you will subconsciously be driven to spend less. This is a psychological approach to the problem.

  7. Emergency saving-

    Always keep some money during the starting of the month for emergency need such as medical tests, repairing work etc. This can also save you from the shame of borrowing at the last moment.

  8. Credit card-

    One of the most important things which should be used very carefully is your credit card. Huge shopping at one time can make you unable to pay the whole bill at once with your credit card. You will have to pay the remaining amount with interest later. This is a sheer waste of money. Try not to exceed the limit of your credit card. Do your shopping twice a month for small amount if you have to use credit card.

  9. Greed of sales-

    People are always attracted by sales schemes in the market. Many people buy items that they never use in life just because it was being sold on a discounted price. Truth of sale is that the shopkeeper first increases the price of items and then offers a sale on it. Also, the items in a sale are defective or of low quality mostly. A person tends to enter a shop when he sees a board showing huge discount and then buys one thing or the other. One should understand that shopping like this disturbs the monthly budget totally.

  10. Gift coupon-

    Many shops and brands offer gift coupons when you shop with them .You can redeem the coupons next time you shop with them. This is just a method to persuade you to do more shopping with them even if you don't need. Most coupons have an expiry date of two –three months. This means you have to shop again within this period. Avoid such shopping just to use the coupon if you don't need to buy more items from the shop.

  11. No comparison-

    Don't compare yourself with your neighbor, friends or relatives. Every human being has a different income and the places where they need to spend are also different. Even people with the same income have vast differences in their needs. You need not buy everything that is owned by your neighbors or relatives. Instead of buying unnecessary items just to show- off, buy what you genuinely need. You may have no money left for buying the necessary items if you keep buying things that was bought by others.

  12. On-Line shopping-

    Though, online shopping is becoming very popular nowadays, it may bring a loss to you. There are chances of being deceived by the seller in such shopping as they describe their product so nicely that you are allured to purchase it. In reality it may turn out to be total disaster. If very necessary to do online shopping, go for cash on delivery option where you can pay after you get the product and are satisfied with it.

Act wise next time you get your salary. Save more with these tips and lead a happy life.


Guest Author: KKETAN PATEL22 Sep 2014

I think managing a family with the fixed given salary every month is the greatest task we face and I am happy that many are very successful in doing so. There are many small tips which will go a long way in paving way for savings every month.

For example, when we want to purchase the groceries for whole month, we normally approach the local provision stores which is nearby our house and give him the list to supply. Please note that your local dealer is the end supplier of the product and he will be charging the MRP rate of every product. Instead go to a whole seller and give the same list, surely you are going to benefit for at least 100 rupees from your purchases thus made.

Likewise you can also select some super bazzars for shopping which will give you freebies for some purchases. This way we can get into the groove of savings habit and also remember to save the daily coins change in a piggy bank and that will fetch a fat amount when needed after few days.

Guest Author: Adam22 Sep 2014

"Live within one's means" is the first step to contain expenditure. One should contain the expenses by sincere attempts and efforts. This can be easily said than done. But one should prioritise his expenses as essential, semi essential, optional and avoidable.

The first should be given first priority. Only if there is surplus after the first, should one go to the next.

However money saved is also equal to money earned. Hence savings should also go with expense.

This article gives some tips on savings.

Savings and provisioning in home budget can help absorb the unexpected jerks one has to face occasionally when there is a gap between earnings and expenses.
( For details on provisioning for home please read the article"How to reduce sudden financial burden by provisioning in home budget" in -URL:

One has to be prudent and should 'know his own hands' first before spending.The article is useful.

Guest Author: Deva02 Mar 2017

An excellent article from the author on personal finance. The author has given various useful tips to save expenditure. In this context, my suggestions are:-

(i) Stop or cut down watching movies in malls.
(ii) Stop frequent visits to coffee shops.
(iii) Stop buying extra groceries.
(iv) Control the habit of dining-out regularly.
(v) Stop spending money on new two-wheeler and four-wheeler.
(vi) Check unnecessary payment of bank-fees.
(vii) Stop spending money on branded products.
(viii) Stop useless subscriptions of gyms, clubs, etc.

If a person makes conscious efforts to stop the above mentioned unnecessary expenditure, he/she can easily save Rs. 3000/- p.m. If this amount is suitably invested, after 10 years or so, the person will be the owner of a fairly good corpus.

Guest Author: yogendra Kumar06 Mar 2017

It is said that ‘a penny saved, is a penny earned'. Money can be saved by making smart choices and cutting down expenditure.

1. Soak rice and pulses before cooking, reduces cooking time, thus saving on gas.
2. Adding sugar to the water kept on the boil for tea, bubbles faster and saves gas.
3. Buy seasonal veggies and fruits, as they are not just cheaper, but also nutritious.
4. Cut toothpaste and shaving cream tubes to extract paste and cream – you'll be able to get 5-6 days' worth of product and over a period of time it saves money.
5. Shop for groceries at cooperative stores or at the wholesale market; prices are comparatively cheaper than normal retail stores.
6. Grow indoor plants to improve air quality and lower room temperatures; you'll need less air conditioning.
7. Use natural light as much as possible to prevent the electricity bill from shooting up.
8. Insulate the house during winter months, so it stays warm and the need to use room heaters is reduced.
9. Pays bills on time to avoid fines.
10. Use CFL bulbs to reduce power consumption.

Author: JohnTaylor20 Oct 2022 Member Level: Bronze   Points : 0

I never counted the money I earned, but my sister always tried to write down expenses and income. She had a calendar of regular expenses and contingencies

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