Life is good in retirement, the early you achieve it the better it is. We’re thrilled to be working progressively towards the same which enables us to live our life on our own set terms. Instead of answering to Mr. Boss, we can wake up and do whatever we want.
On some fine day, I would just ride a bicycle for hours. On others, I’ll spend hours in a library or go on a never-ending car ride with my play-list on. Money in all of them is going to play the role of a magnificent expediter if some hacks are applied while using the same. Once we’re stuck in our ways, we all become intellectual idler sometimes, to not doing this we always thrive towards learning something out of everything.
We may have enough money so that we do not have to pay attention to trivial things of life, but we’ll never stop learning. Money is something that we discover new things about every week or month which makes us wiser saver/investor. This read of ours is going to share our favorite money hacks with you:
Money Hack 1. Write Down Every Transaction:
Until recently, we knew how important it is to track out every expense that we make but didn’t bother to actually record it. But then a couple of years ago we have begun to make a record of every rupee going out or coming in. It would be an understatement to say that we were in shock to see where all the major chunk of our income used to go.
We were able to categorize our expenses into three categories: Fixed Expenses, Variable Expenses and Periodic Expenses (which also accounts for any emergency expense too). When we have a fair idea about what is needed and valued the foremost (which could not have been possible without keeping a track of actual figures of income & expenditure), we are able to allocate the money in the most productive way.
Money Hack 2. Tracking Spending on Spreadsheet:
We have literally created a spreadsheet which has two sheets on it: one recording all the income and the other recording all the expenditure. Sometimes when we do a trackback in the month end and see that we ended up spending thousands over online shopping buying a pair of jeans or shoes (while so many unused pairs of them are still waving at us from our wardrobe), we bang our head for why did we even buy them at the first place.
We never understood why someone would pay thousands of rupees extra to sit in a wide seat with better legroom for a couple of hours when they could buy a fancy recliner of worth half of those thousands spent on first-class airline tickets and enjoy it for decades. Certainly, our body will appreciate those hours spend comfortably during the travel, but the wallet shall definitely be pissed off at it.
Money Hack 3. Wise Use of Credit Cards:
We know we’re entering a controversial and disputed territory here, but here is our take on the usage of credit cards. Use them maturely and they do wonderful things to you. Use them carelessly and: BOOM!
People usually think they have to make sacrifices when it comes to saving for financial independence. We’ll say, it’s not. Let us tell you a small story, we have enjoyed the best 6-7 days of our lives in Sri Lanka at a very reasonable travel rate. We got our air tickets, hotels at much cheaper rates because of the cashback we got on our credit cards (we have a lot of them actually…wink). When we were planning the Sri Lanka trip, we received a shopping voucher along with one of the credit card’s welcome gift that helped us in all our fashion needs on the vacation. We bought our iPhones and iPads INR 10,000 lesser than the usual price as a last minute discount on the credit card was ON and we leveraged it. We can go for the movies at BOGO offers (every Wednesday & Saturday), just because of the credit cards.
At times, we have even paid the outstanding of credit card via converting the same credit card’s points into cash rewards. Isn’t it clever?
But hang on, before you consider any of these you must bear in mind that you have to keep your hands tight when it comes to the shopping spree via credit cards. Use the credit cards responsibly and never hold a balance!
Money Hack 4. Personal Capital Record:
Our financial records get complicated sometimes, and we’re sure you won’t be remembering your fund allocation to each and every place made. Since one puts their money at about thousands of different places, if not literally at least it feels this way!
The remedy to this problem for our sake is Moneycontrol. This platform aggregates all our accounts in one place. We’re sharing a screen capture of the same for all of you to have a look at:
We have just masked our recordings with the black boxes, finances are a secret right? Well, you have seen how beautifully it keeps a record of everything ranging from equity investments to your loan accounts and property details as well.
The best part of this platform is that it’s free, and who doesn’t like anything free?
Money Hack 5. Shopping for Long Term:
We think for the long term when it comes to making a purchase of something big. We’ve heard/seen people making impulsive purchase many a time in the market and saying, “it’ll come handy someday, let’s buy now or where to find at the time of need”. Do you know the money invested in the equity gets doubled typically in less than 10 years, obviously when invested wisely? Big purchases at an early age may cost you big time in the long term.
What’s Your Money Hack?
So, this was our side of the story when it comes to the money hacks and we know we have hardly touched the surface of the matter here. We would love to hear your money hacks now. What are your hacks to hold down the slipping of hand inside the pocket for wallet and cut down spending? What tools do you use to stop spending rather investing?
Knock us in the comment section below and let’s all of us learn more.