How To Cut Down Your Expenses, Save More And Travel A Lot

By BankBazaar | December 9, 2016

how-to-cut-down-your-expenses-save-more-and-travel-a-lot

‘Travel is the only thing you buy that makes you richer.’ As true as this is on a philosophical level, there’s no denying that one needs money to travel. While there are a lot of backpackers out there trotting around the globe, one has to accept that even if they are travelling on a low budget, they still need money, or even Credit Cards, in order to experience the world. So, if you are one of those who plan to travel a lot, but your plans always fail to materialise due to budget issues, you have landed on the right page. We have some awesome tips for you that will help you achieve your travel goals without hurting your financial goals. Sounds rad, right? So, let’s begin.

What you’ll need: A pen and paper

Why: To jot down your expenses. You need to pen down all your unavoidable expenses like rent, Loan EMIs and utility bills among others. Note down the sum of these costs. Then, write down all your other expenses like movie nights, dine-outs, gig tickets, tech cravings, cigarettes, etc. If you are confused about what expenses to put down here, you can take a break and note down all such expenses for a week and then multiply it by four to get the not-so-necessary expenses for the month. Cool?

While you now have a sum of all your expenses for the month, we have to tell you that you’ve still missed out on some expenses. A lot of times, several expenses come unannounced and if you don’t have an emergency fund, you end up spending from your savings.

Additional Reading: 6 Lazy Habits To Build Your Savings

So now, let’s begin with the expenses that you can cut down and add to your travel fund.

Cook your own meals

Of course, eating is a necessity, so we aren’t asking you to cut down on eating. However, you can totally cut down on eating expensive. Firstly, learn how to cook. If you aren’t a morning person, you can cook some extra food the previous evening. This way, you will not only save on lunch money but will also eat healthy, home-cooked food. If you eat all your meals at a restaurant daily, you probably spend an average of Rs. 200 per day. If you spend at a restaurant only for one meal, you still spend at least Rs. 100. Just imagine how much money you could save annually. Even if you don’t enjoy cooking a lot, you can fix yourself something easy by following one of the many cooking websites. Simple!

How much you can save: 2 meals: Rs. 6,000/month; 1 meal: Rs. 3,000/month (Even if you spend Rs. 1,000 on groceries, you will still save almost Rs. 60,000 in the former case and Rs. 24,000 in the latter scenario, annually)

Goodbye, beverages

Caffeine addict, much? Are you one of those who can’t begin their day without a cup or two or more of tea or coffee? If you use the coffee machine at work, you’re saving money. However, if you prefer your coffee made in a certain way, and you buy it daily from your favourite coffee shop while commuting to work, you certainly need to stop that now. On an average, one spends Rs. 100 per coffee in one of those fancy coffee shops. The money you can save annually by skipping that expensive coffee can be used to purchase a return ticket to places like Dubai, Thailand, Singapore, Turkey, Egypt and London too!

How much you can save: Rs. 3,000 (per month); Rs. 36,000 (annually)

Additional Reading: 11 Things You Can Save Money On Every Month

A lil less privacy, please?

Have you ever thought of sub-letting your apartment or finding a new roommate? Yes, we get that your space matters a lot to you, but think of how much money you can add to your travel fund if you finally decide to find a housemate. Once you find a roommate, your rent money will be split into two. If you don’t like the idea of sharing your space with another human being, you can think about moving back to your parents’ house for a while. We’re sure your parents have still  left your room just the way you used to like it. If you live in a city like Mumbai or Bangalore, you will end up spending at least Rs. 10,000 to Rs. 15,000 as rent. Whether you decide to split it with a roommate, or move in with your parents, you will save loads of money.

How much you can save: Rs. 60,000 to Rs. 90,000 (If you find a roommate); Rs. 1,20,000 to Rs. 1,50,000 (If you move back in with your parents)

This amount can take care of your accommodation and city transfers when you travel.

Additional Reading: Should I Buy A House Or Continue Staying On Rent?

Rely on public transport or carpool

If you plan to fulfil your wanderlust, you might as well sell your car / bike and take to public transportation or carpool. Once you sell the car and clear your Car Loan, it’s likely that you may still have some money left, which you can add to your savings. What’s more? Once you bid goodbye to your vehicle, you will save tons on fuel, servicing and Insurance. On an average, you are likely to spend Rs. 3,000 a month on fuel. You can save all that money and a little more if you take into account the servicing costs, EMI, etc.

How much you can save: Rs. 36,000 (annually)

Additional Reading: Are You Financially Ready To Travel Abroad?

Ditch that landline already!

Who uses a landline anymore? Just because you have been too lazy to get that number disconnected, you have still kept that landline at home, haven’t you? Well, it’s high time you ditch that landline. Don’t you already have your cell phone bill to take care of? Why do you like to spend on these additional expenses? Even if you don’t use that landline, it’s likely that you pay the minimum bill which could range from Rs. 99 to Rs. 499. So let’s see how much you can save annually.

How much you can save: Rs. 1,188 to Rs. 5,988 (annually)

Save on electricity bills

This one’s pretty simple. How to save on electricity bills, you ask? Well, start consuming less power. Make an effort to consciously switch off the fan and lights every time you leave the room. Don’t leave the TV on while you sleep. While these are little things that you can start following, you can also replace all electrical appliances with low power-consuming ones. Whether it’s the tube light or your air-conditioner, make sure you are using the one with the best rating, which uses minimum electric power. Once you start following this, you will soon start noticing a difference in your monthly electricity bill. You can save as much as Rs. 200 to Rs. 1,000 a month or even more. No kidding!

How much you can save: Rs. 2,400 to Rs. 12,000 (annually)

Sell unwanted things

Get rid of that unused treadmill or that unused study table. Don’t just give it to anyone, but sell it online. There are multiple online platforms which allow users to buy and sell old products. The things that are rusting away and accumulating dust in your house can be monetised. So, what are you waiting for? Based on the utility of the product you plan to sell, the amount you earn will differ. It could range from as little as Rs. 100 to Rs. 10,000 or a lot more.

How much you can earn: Rs. 100 to Rs. 10,000 (annually)

Buy second-hand products

Just as you can sell unused products on online platforms, you can find amazing second-hand products that you can buy on these very same platforms. The best thing about buying second-hand products is that you can save a lot of money. In most cases, you will be able to buy a product for half its actual price. If you are unsure about the product quality, you can always check with the seller before saying yes. What’s more? A lot of these platforms have great exchange policies too just in case you are disappointed with the second-hand product. You can save anything between Rs. 100 to Rs. 10,000 and sometimes more based on the product you buy.

How much you can save: Rs. 100 to Rs. 10,000 (annually)

Choose: Movies or travel?

Yes, we totally get that you are a movie buff. But, if you were to choose between watching a movie at a theatre and travelling, what would you choose? In most cases, the answer would be the latter. However, you can’t just forget all about it after answering this question. You have to take measures to actually avoid spending on movies. A movie ticket costs around Rs. 200 to Rs. 500 and the food that you buy at the theatre costs minimum Rs. 200. So, on an average, you will save Rs. 450 every time you skip a movie. If you watch two movies a month, you will save Rs. 900 a month.

How much you can save: Upto Rs. 10,800 (annually)

Additional Reading: Are You A Credit Card Addict? Find Out

Let ‘occasionally’ be for special occasions

Each time you resolve that you are going to quit drinking and smoking, you end up splurging that weekend by saying it’s a ‘one-off’ special occasion. Well, you have to stop giving yourself a reason to ‘celebrate’ if you really wish to travel. If you really want to get drunk, you can do that at home, instead of splurging a bomb at a pub or a restaurant. The same applies for smoking. You’ll be surprised to find out how much money you can save if you kick the butt. On an average, one spends Rs. 1,000 when they go for drinks. If you go out at least four times a month, you spend Rs. 4,000 on drinks. One cigarette costs Rs. 11 approximately. If you smoke 5 a day, you spend Rs. 55 per day, which in turn is equal to Rs. 1,650 per month. Let’s find out how much you can save annually if you let these occasional spends be really occasional.

How much you can save: Rs. 48,000 (annually on drinks) Rs. 19, 800 (annually on cigarettes)

That’s surely a lot of money!

Never say no to extra money

Whether it’s freelancing offers or any other decent opportunity to make an extra buck, never say no to money. If you have an extra room in your house, you can always rent it out on numerous online platforms. You’d be surprised by the number of options out there which can help you make more money. All you need to do is research, find a reliable source and start earning more. You can earn Rs. 10,000 to Rs. 50,000 and more as a freelancer every month. Letting out a room could get you Rs. 1,000 to Rs. 5,000 based on your location. Start earning more, already!

How much you can save: Rs. 12,000 to Rs. 1,20,000 or more (annually)

Additional Reading:  Give Yourself A Raise: Here’s How

Carry your own water bottle

As simple as this one might sound, most people don’t follow it. Invest in a good water bottle and stop buying mineral water each time you step out. Even if it’s only Rs. 20 that you spend in one go, over time, it’s a lot of money. The best thing you can do is, put that money into buying a nice water bottle which will quench your thirst each time you step out, without burning a hole in your pocket in the long run. These little things matter a lot! If you buy 5 disposable bottles in a month, you spend at least Rs. 100 a month on mineral water. Pretty small amount, right? Think of this amount annually and five-yearly? Not that small anymore, right?

How much you can save: Rs. 1,200 (annually)

Open a Savings Account

Now that you can save so much money annually, how about opening a Savings Account and depositing all your savings into that account? What’s the benefit, you ask? You can earn interest on the money deposited in the account. So, you can explore the best Savings Accounts in the market and earn interest on the money that you will save by following the above-mentioned points. This way, you will achieve your travel goals and financial goals. It’s a win-win situation, right?

How much you can save: Now, it’s time to put that pen and paper to use, again. Based on the above points, find out how much money can you put aside annually. Then, find a Savings Account with a good interest rate and calculate how much money you will actually save and earn. Cool?

Find the best Credit Card for you

Don’t EVER just pick any random Credit Card. There are several types of Credit Cards out there. Based on your likes and dislikes, you can pick the one that best suits your lifestyle. Considering you are interested in travelling, how about checking out Travel Credit Cards? A lot of these cards come with exclusive discounts and offers on hotels. What’s more? You can earn Air Miles, which can then be redeemed each time you book a flight. You can save a lot of money if you find your perfect plastic soulmate.

How much you can save: Find out the best Credit Card for you, read its benefits and then calculate how much of a difference it would make to your life.

Now that you know how to save money to help materialise your travel plans, start saving right away! Make sure you implement all or almost all of the above-mentioned points in your day-to-day life to see the best results. If you are looking for other finance products apart from a Savings Account and Credit Cards, go ahead and explore your options.

Additional Reading: What Type Of Money Personality Are You?

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