Blog

In today’s world, we all want to live a modern and comfortable lifestyle. One where we have the latest gadgets, take vacations in fancy destinations, drive luxurious cars, own multiple house, etc. But not everyone has enough money to fulfill all such dreams. This article will list 17 Simple ways to save money (over 1 Lakh per year) to help fulfill at least part of your dream with only a small change to your lifestyle.

Note that I have considered middle-class income group people as the basis for this article. And since we are so used to our modern lifestyle, I have deliberately kept minimal changes that can easily be followed. Result is a saving of over One Lakh rupees per year – enough to buy that latest IPhone or Foreign Vacations you have been dreaming for so long.

Let’s get started.

1.   Movie Outing

a.      Assumption

Couple movie ticket once a month on recliner will cost around 700/- including booking fees.

b.      What can be changed

Instead of the recliner, opt for non-recliner seats which are just one level below recliners. You will still get good viewing angles (without tilting your head upwards) and get comfortable seats. Alternatively, instead of going on weekend evenings/nights, go for non-prime time shows like morning shows or weekday shows which are cheaper. You can also go to the movie 1 week after release as most big releases have high ticket price in 1st week (see the pics if you don’t believe me). 

Another way to save is by using the credit cards which offer you free movie tickets.

c.      How much can be saved

Non-Recliner or Non-prime day show tickets are around 300 – 400 rupees for a couple. So you can save up to 300/- per outing.

d.      Annual Saving

3600/-

2.   Movie Outing F&B

a.      Assumption

Couple buys popcorn combo / F&B worth 500/- during movie outing per month.

b.      What can be changed

We all know that the main source of income for multiplex is F&B as they price it absurdly (especially popcorn). Go after breakfast or lunch so that you are not hungry and don’t have to buy anything. Or take a chocolate bar with you if you want to munch during the movie. However, if you still cannot resist, opt for the smallest pack of popcorn (no combo).

c.      How much can be saved

Only popcorn (or anything else) start from 175 -200 rupees. So assuming 200/- is the cost, you can save 300/- per month.

d.      Annual Saving

3600/-

3.   Cable TV Subscription

a.      Assumption

We spend around 300/- per month on our cable TV subscription (Tata sky/airtel etc.).

b.      What can be changed

Disconnect cable tv subscription. Why do you want to pay for something when so much content is already available for free/lesser cost online. Instead, use Chromecast/Firestick to connect your phone to TV and see everything via Jio TV free of cost. Alternately, give up DTH all together, get a subscription to OTTs like Hotstar/Netflix/Amazon Prime and enjoy ad-free movies, series, etc. anytime anywhere as per your convenience.

c.      How much can be saved

300/- per month.

d.      Annual saving

3600/-

4.   Smoking

a.      Assumption

You are a smoker, each cigarette costs 12/-

b.      What can be changed

Smoke 1 less cigarette per day. We all know the ill effects of smoking. I will not go into it. We also know how people find it difficult to quit smoking even if they try. I will not ask you to quit smoking. I only want you to reduce cigarette consumption by 1 per day. So if you smoke 10 cigarettes per day, reduce it to 9. You will save the cost of 1 cigarette per day.

c.      How much can be saved

Assuming each cigarette costs 12/-, you save 12*30 = 360/- per month.

d.      Annual saving

4320/-

e.      Additional advantage

Intangible benefits -> you will also improve health and save on your medical expenses.

5.   Grocery Shopping

a.      Assumption

Visit to hyper-marts like Reliance, Big Bazaar, etc. twice a month. Average spend is 2000/- per visit.

b.      What can be changed

We all love the discount offered by hyper-mart. But the problem with such a place is that you end up buying more than you had planned. With their carefully planned aisles, you have to walk through various departments before reaching the payment counter. And most often, you will see something attractive and end up buying that even if you had not planned. So you will add extra juice/soft drink bottle, chocolate bars, ice-cream bricks, kids’ toys, etc. just because it was on discount.

If you notice carefully, these hypermart have everything in large volumes. So there are no half kg packs. 1kg, 2kg, 5kg packs, 1+1 offers, etc. are sold here. They basically encourage you to buy more quantity.

Instead of going to hypermart, try buying via wholesale shops or online stores like big basket/grofers. The advantage via wholesale shop is that you will buy only what you need (make list before going).  And you will also save on petrol and parking ticket expenses. The advantage of online shopping is that you will still get the same discounts but will not buy unplanned things.

c.      How much can be saved

If we add up petrol, parking cost, unnecessary purchase, etc., approx. 300/- per visit can be saved which comes to 600/- per month.

d.      Annual saving

7200/-

e.      Additional advantage

You will spend only 30 min via online/wholesale shop purchase instead of 2 hours at hypermart. Spend this enjoying with family.

6.       Dining out

a.      Assumption

Normal dinner outing for a couple consisting of starter+food+beverages+dessert will cost around 1000/-. Add tax (5%) and service charge (5%), total cost comes to 1100/-. Of these, dessert costs around 200/-. One outing per month.

b.      What can be changed

We all love to go out and dine once in a while. And since this article is about small changes to your lifestyle, I will not ask you to stop going out. The small change you can do is to not have dessert in the restaurant. Instead, have the dessert outside in some bakery/ice cream shop.

Pastry in a nice bakery will cost around 100/- bucks. Similarly, if you want to enjoy ice cream, purchase either bricks (costing around 125-150/-) or the cones/stick ones (costing around 30-50 rupees each). The restaurant will charge around 200/- for any dessert while you can enjoy outside at around 120/- rupees. You will also save a small amount on taxes and service charges paid as they all are calculated as % of total bill.

c.      How much can be saved

80 rupees (difference in cost in restaurant vs outside) plus 20 rupees (of tax and service charge not paid in restaurant) = 100/- per month.

d.      Annual saving

1200/-

7.   Travel costs when not going to the office

a.      Assumption

Office is 10kms away, you travel in a car which gives a mileage of 13kmpl. With petrol cost of 80 rupees per liter, your office trip will cost you 20km (round trip office-home) *80/13 = 123/- per day.

b.      What can be changed

Either work from home or avail your sick leaves/vacation leaves. Stay at home one day per month and not take your car out. Taking out 12 days of leave in a year should not be a problem for most people 🙂

c.      How much can be saved

123/- per month.

d.      Annual saving

1476/-

e.      Note

Same calculation when done for bike averaging 50kmpl gives saving of 385/- per annum.

8.   Earnings if going via own vehicle

a.      Assumption

Your office is 10km away and you travel via car for 21 days in a month (since 1 day is WFH/leave 🙂 ).

b.      What can be changed

Register on carpool apps (Sride, Quickride, etc.) and start offering rides. Since your car is anyways going to the office, you might as well add few more people in it and earn money. While you may not get co-riders every day, you can easily get co-riders if you travel during peak hours / you stay in residential areas with good population.

Click here to register on SRide (use referral code NISHG83 for joining bonus) and click here to register on Quickride (use referral code MPWP54 for joining bonus)

c.      How much can be saved

Assuming that you get 2 passengers every day for 15 days in a month with 50 rupees per ride per passenger, earnings can be:

50 rupees per ride per passenger * 2 rides per day (to and fro) * 15 days you get co-riders * 2 co-riders on each of these 15 days = 3000/- is what you earn per month. Since you are already taking car for yourself, I am not deducting petrol cost from this earning.

d.      Annual saving

36,000/-

Note – Same calculation when done for bike gives annual saving of approx. 12,600/- (assuming daily earning of 35/- per trip for 15 days).

e.      Bonus

You help in reducing pollution and also make good friends. Further, the more rides you give, the higher ratings you will get which will increase chances of getting more people wanting to ride with you. Since most of the riders are verified via their company email id OTP, and majority of companies do thorough background verification of their employees, you can be rest assured that drive is safe.

9.   Earnings if going via shared cab

a.      Assumption

Your office is 10kms away and you travel via Ola/Uber pooled car 16 days a month costing around 80 rupees per trip. 5 days you don’t get pooled car / have to reach office urgently and hence take full cab instead of carpool costing 150 rupees per trip.  Your current cost will then be 2,560/- (16 days*2 trips per day *80 per trip) + 1500/- (5 days*2 trips per day*150 per trip) = 4060/- per month for 21 days. 1 day per month is WFH/leave.

b.      What can be changed

Register on carpool apps (Sride, Quickride, etc.) and start taking rides by becoming a co-passenger.

c.      How much can be saved

55 rupees per ride * 2 rides per day (to and fro) * 21 days you go to office = 2310/- is what you pay if you become co-passenger. Effective saving is 4060 – 2310 = 1750/-  per month.

d.      Annual saving

21,000/-

Note – Same calculation when done for shared ride on bike gives an annual saving of approx. 28,500/- (assuming daily spend earning of 40/- per trip for 21 days)

e.       Bonus

You help in reducing pollution and also make good friends. Since most of the riders are verified via their company email id OTP, and majority of companies do thorough background verification of their employees, you can be rest assured that drive is safe.

10.   House

a.      Assumption

You stay in your own house and have 1 room spare which can be rented for at least 1 night per month.

b.      What can be changed

Register and become a host on Airbnb. Post your spare room for at least 1 night each month based on your convenience. Keep the price reasonable/towards the low side to attract booking.

c.      How much can be saved

A good room on Airbnb can earn you between 1000-2000 rupees per night. It all depends on the house pics, how much of the common area is shared, amenities provided and whether the entrance to the room is private or not.

d.      Annual saving

Assuming modest income of 1000/- per month, you can save 12,000/- per year.

e.      Tip

More stays will give you higher ratings and make you a super host increasing your chances of occupancy even at higher prices 🙂

Click here to become a Host on Airbnb

11.   Experiences

a.      Assumption

You are good at something – cooking, shopping, partying, historical places, etc.

b.      What can be changed

Become an experience coach on Airbnb. Put scheduled classes as per your convenience and price. It can be a half-day shopping tour in your city’s shopping market. Or few hours of club-hopping/food tour/bike tour/city tour. Or teaching your regional cuisine to interested people. Such experiences are a big hit on Airbnb and many people (especially foreigners) take them consistently.

c.   How much can be saved

Assuming you do 1 such experience per month for 2 to 3 guests, you can earn around 1000/- or more per month.

d.      Annual saving

1000 * 12 = 12,000/-

12.   Picnic

a.      Assumption

You get bored at the house on weekends and go to the mall to pass time. Play some games/activity/play zone and spend around 500/- every month. This may increase if you have kids who will want to ride in train/play zone in mall.

b.      What can be changed

Instead of going to the mall, go to a picnic in parks once every 3 month. Enjoy the fresh air and relax. Go in a group and play fun games there. You can even take some food items/snacks to enjoy your picnic.

c.      How much can be saved

500/- rupees every 3 months.

d.      Annual saving

2,000/-

13.   Air Travel – Luggage

a.      Assumption

2 adults travel by flight (to and fro) once a year in low cost / full carrier.

b.      What can be change

Most of us are used to taking flights and often hunt for discounts/cheap flight options. Low-cost carriers like AirAsia, Spicejet, Indigo, Go Air offer Cabin baggage only fares which are about 500-1000 rupees cheaper than regular fare of the same flight. Try saving on this.

Buy cabin suitcases (prefer cloth one as you can expand that if required) and use them for travel. These will be especially perfect for the summer season when you don’t have to pack bulky woolen clothes and jackets.

And remember not to pack unnecessary things as everything is now available everywhere. So just pack your clothes and footwear along with basic toiletries. Rest can be purchased or delivered via Amazon at destination (especially items like kids diapers and sweets)

c.      How much can be saved

500/- per person per side will result in 2000/- worth of saving for a couples return ticket on domestic flights. On international flights, you may save up to 4000 – 5000/-.

d.      Annual saving

2,000/- on domestic, 5000/- on international.

14.   Air Travel – F&B

a.      Assumption

Couple traveling (to and fro) once a year in a low-cost carrier and eat food worth 250/- per passenger per side.

b.      What can be changed

Most of us leave for airport about 2.5-3 hours before scheduled departure of the flight. Add average flight time of 2-3 hours and then reaching destination hotel time of another 1 hour. So in total, you spent around 5-7 hours in travel. You feel hungry and are forced to buy overpriced snacks at airport/flight. Instead, get credit cards that offer free lounge facilities and enjoy free F&B. Remember to read my article on must-have credit cards if you love to travel to get detailed comparison and benefits of major travel credit cards

c.      How much can be saved

250*2*2 = 1,000/- for a couple.

d.      Annual saving

1,000/- for domestic, higher for international (if flying via LCC like AirAsia, Thai Lion, etc.).

Make sure you also go through my comprehensive article on Must-Have credit cards if you love to Travel to save money while traveling

15.   Credit Card point redemption

a.      Assumption

You spend 30K per month on non-fuel/utility items (as they don’t earn points). Most credit cards redeem at 4 points per 150 rupees spent and every reward point is usually worth 0.5 rupees. Annual spending of 3.6L is converted to 9600 reward points worth 4,800/-.

b.      What can be changed

Use a credit card as much as possible for every transaction. Don’t pay via cash/debit card. If going out in a group, volunteer to pay via your credit card so that you earn reward points.

c.      How much can be saved

4,800/- per year. Additional earnings as most credit cards offer cashback/extra reward points sometime of the year.

d.      Annual saving

4,800/-

16.   Amex Platinum Travel card

a.      Assumption

You can spend 4 Lakh rupees per year through Amex Platinum Travel card.

b.      What can be changed

Apply for Amex Platinum travel card. Joining fees is 3,500/- and renewal fees is 5,000/-. But you get flight tickets worth 23,500/- in first year and worth 19,000/- every renewal year. In addition, you will also earn Taj voucher worth 10,000/- if annual spend is over 4Lakhs.

c.      How much can be saved

If we deduct the joining/renewal fees, we still save 20,000/- (first year) / 14,000/- (renewal year) rupees on flight tickets and 10,000/- on Taj voucher. Total saving of 24,000 to 30,000/- per annum.

d.      Annual Saving

Between 24,000/- to 30,000/-

Click here to apply for Amex card to get special joining benefit of 2000 Membership Rewards Points on spending INR 5,000 in the first 90 days of Card membership + Zero annual fees for the first year (valid till 30 Jan 2020)

17.   Switching off the WIFI router

a.      Assumption

You use a wifi router at home and it is on for the entire day (and night).

b.      What can be changed

Switch off the router in when you go out / when you go to bed.

c.      How much can be saved

Router does not consume much power. But electricity bills are priced slab-wise depending on the units of electricity consumed. Switching off the router when you don’t need it may either result in small saving (if your unit slab is not changed) or significant saving (if slab changes). Hence I will not get into the monetary part of how much money is saved.

d.      Annual saving

Depends on usage.

e.      Additional advantage

Intangible benefits -> You will not be exposed to harmful signals emitted by routers/wifi during your sleep.

Let us now check how much we saved using our Simple Ways to Save Money

If we add up all the annual saving from above points, total saving comes to:

1.      Approx. 1.08 Lakhs for smoker / 1.03 Lakhs for non-smoker going to office via cab.

2.      Approx. 1.23 Lakhs for smoker / 1.18 Lakhs for non-smokers going to office in own cab and giving shared rides.

As you see, I have made only small changes to the lifestyle and ended up with 17 simple ways to save money (over 1 Lakh per year). These should be enough to fund my next fancy gadget / international trip free of cost 🙂 Hope you are able to do the same.

Please share your feedback and also let me know if you know of other such tricks to save further.

Liked this article? Join my Whatsapp group to be part of our community!

Feel free to share this article by clicking on the below icons…