Archive for the ‘Finance’ Category

The cost cutting

Posted: November 1, 2013 in Finance, Safety
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Every time I think of cost cutting, I feel. It is so difficult to cut on your spending and live without shopping or eating out. Little did I know that I soon have to follow the same step? I recently booked a house, and my husband being the only bread earner, we find it very difficult to survive, if we spend too much. SO unanimously we decided that we will follow the cost cutting way.

Apparently the cost cutting started off really well for first 2 months, but post that, we kind of voluntarily or involuntarily stopped saving. Well! That’s too bad. But I think I have to make a list of how to save on hard earned money to avoid any financial crisis. So here are the lists I have thought about:

  1. Make a list: I have already started making a list of day to day expenses. Even a small pin we buy, I add that in the list. This way we know every month how much are we spending? Out of that how much is unnecessary expense and we can curb on that later. Try to make an accounting statement kind of sheet, with all your incomes and expenses included in that. This would galvanize you to save more and spend less.

2.      Curb on your travelling expenses:  For me this is a little difficult, as our family stays away from us because of my husband’s job elsewhere. SO, we had to travel quite often to visit them. But still, we have decided, we will curb on these expenses and instead of going once in every 2-3 months, we planned to go twice or thrice in a year. However, in case of any emergency or crunch, we cannot stop our self from going.

3.      Buying the groceries: At the crux of life, it’s imperative to cut on daily expenses. Instead buy your groceries and important items in higher quantity, so you don’t have to go again and again to the super market to buy these items. And buying anything in a glut will also save that extra penny.

4.      Avoid eating outside: With working couple, it’s really difficult to prepare lunch or dinner at home, and they end up spending more on eating outside. When you have a major expense ahead, try to cut on this expense and prepare anything at home. Even salad at home would be healthy and cheap. I am not saying cut on your eating habits. Try to get up a little early and prepare lunch and dinner together, so when you come home from a tiring day in office, you would not have to prepare food and you can avoid eating outside as well.

5.      Unnecessary expenses: Again, buying unnecessary items and clothes, is not important. This is a crucial point in your life. SO try to avoid unnecessary expenses.

 

Just a little caution from your side, will help you save more and that in turn will be helpful in future. This way we will also get a habit of spending less and saving more, which is always helpful. Try to follow this policy forever and you can lead a happy and contented life.

 

Life is very uncertain. At this point in time you may be flourishing, but there can always be an uncertain situation, where you might loose on all your financial support. When your time is bad, you are vulnerable to all the crisis in the world which might bust your present and future. This is the time you know who all espouses you. But this is a very difficult phase of life.

The financial Catastrophe might bring down your self esteem and confidence. And it makes a person feel that he/she has reached a dead end and there is no way out. However, you can always go back in time and figure out, what mistake have you done which led you to this situation. At the same time, what are the future measures to be taken to avoid any further situation like this?

  1. Keep a backup: This is important .Only because there was no backup, you are in this situation. So henceforth, make a point to keep a proper savings and backup for any such crisis. Try to figure out how you can generate more income and how to save the income. There are people who can help you out on this. Take help from financial advisers, and family members.
  2. No more credit cards: Try to avoid using credit cards. Leading a life on credits will not help you on saving, in fact, you will end up spending more, as you are unaware of the credit limits and half of your life will go in vain paying these credit card bills. So, don’t make your life so complicated, lead a simple life.
  3. Curb on your expenses: When you know you have just come out of a major crisis, try to curb on your unnecessary expenses. Try to save more and send less. This is the Mantra for a safe and secured future.
  4.  Don’t put all your eggs in one basket: Which means don’t put all your hard earned money in one bank. Instead distribute your income as saving in different places, like bank, in the form of Gold, some government saving schemes. This way, at the time of crisis, you will not be on the roads, because you at least have backups in different forms.
  5. Try to borrow less and earn more: It’s normal that at your hard times, you try to borrow money from your near and dear once. But, as far as possible try to avoid this, because, it’s like taking a loan which you have to keep paying back. You have not yet come out from the abyss and you will have another pot hole waiting for you. Instead, try to earn more, if possible, do a part time job, and work harder and harder. Your hard work will definitely be fruitful. So be positive.
  6. Change the job if that helps: As mentioned above if you think, you might get a better salary elsewhere; try doing that, because you are in dire need of money.
  7. Evaluate the value of your belongings: I would not suggest you to sell off all your belongings you have. But keeping a track of the value of the same is good for you. And only when you have run out of options, you can take this step.

SO, when a financial crisis occurs, that is not the end of the life and you should not lose hope and faith in God. As they say, May be God has a different plan for you. SO always be positive and come out of this situation even stronger and with greater will power. And you will pass this exam of life with flying colors.

Cheers