You might have been reading my blogs on financial independence or this might be your first one. Nevertheless, let us combine reading with some action. Now is the time to take up a savings challenge and start on the path of financial independence and early retirement. The idea helps you with saving more.
The challenge – saving more, spending less
The challenge is very simple, you have to save an extra Rs. 5000 this month from your pay-check. Over and above what you already save or were about to save.
I am sure you can figure out a way to save an extra Rs. 5000, but here are a few ideas that can get you going.
- Reduce the number of times you go out for dinner or drinks. If you like to cook, that is a great opportunity for you to try out a new recipe and create something on your own.
- Cancel any monthly subscription you don’t need this month. Are you currently watching a series on Amazon prime, then probably cancel the Netflix subscription this month.
- Try not to shop except for grocery, medicines or any emergency item. You can still buy it next month, but delaying the purchase would be an enriching experience, try it. Who knows, you might end up realising next month that you didn’t need it.
Tell us below in comments how the challenge is going. You may end up saving Rs. 3000 instead of Rs. 5000, but try your best.
What can you do with an extra Rs. 5000?
You may decide to spend it in the next month or invest it, that choice and decision is entirely yours. But what you should definitely do is ask yourself, if you did feel a lot of hardship in saving that extra Rs. 5000 or not. If the answer is that is wasn’t that difficult to save an extra Rs. 5000 then you are definitely spending on items you don’t really need. And can save at least that amount every month. It is a good exercise to figure out the low hanging expenses you don’t really need and saving more.
Remember, every time you save and invest some money, that money will be working for you even when you sleep.
Update on progress
24 May 2019, we are in the last week of this month and I thought it to be a good time to update on our progress. Following is what we managed to save extra this month till now:
- Reduced dine-out from 2 to 1 this month. Saving = Rs. 1500
- 1 movie night instead of 2. Saving = Rs. 700
- Deferred purchasing a tripod (and now I believe I don’t need one). Saving = Rs. 800
Total savings till now = Rs. 3,000. Not bad. Do let me know, how much were you able to save in comments below.