We usually follow various things and practices in our daily lives. Some of them are very useful to our lives and some of them are just out of habits. The good practices are concentrated to that person who is using or following it. The internet is a medium by which you will be able to share your good habits to millions of others.
We as Indians are using many tips and tricks to save a small amount of money. These are very much powerful if you can save it for a long time. Even the small amount of savings will turn to a big amount if you invest regularly with utmost discipline.
The following five simple money hacks in India will help you to save some money without either putting any extra effort or a very less effort.
Using Budget / Expense Tracker apps:
Sticking to the budget is a very good practice to achieve financial goals. It would be a wise choice to take the help of a smartphone when we actually struggling to stick to the budget. The smartphone is the new companion of the young generation. There are a number of applications in the smartphone by which you can track your expenses.
The SMS sent from the banks and credit card companies are automatically read by these apps and update the database itself. You just allocate your budget on the different category on the app at the start of the month. When your expenses will reach to the target amount, it will give you the notifications that you have surpassed your budget this month.
Using Affiliate Websites while shopping Online:
We also like shopping very much. At the advent of e-commerce we don’t need to go to shopping mall even. And we are busy with shopping whenever we have free time. This habit is to be checked first and restrict you to indulge in shopping. Do the shopping for necessary items. And while shopping use affiliate websites like Pennyful, Go Paisa etc. to redirect the shopping website like Flipkart, Amazon etc.
The affiliate websites earn commission for marketing of e-commerce sites. In turn, they give you back some of their commissions. With this simple re-direction, you can save some extra bucks while enjoying the shopping. I am using pennyful since a long time and it pays me a good amount. You can use the code 79GQEU for signing up with Pennyful and get Rs 50 as bonus.
Don’t carry a credit card instead of using cash:
A credit card is a very good product when you use it carefully and pay the bill in time. At the same time, credit card also tempts you to spend more, sometimes beyond your capability. As a result, you are unable to pay the bill after fifty days of credit. Then the interest on the bill is sky-rocketing as the interest rate on credit card outstanding is as high as 3% to 4% per month. Soon after two-three months, it goes haywire from the original bill which was much easier to pay compare to present bill. And you are trapped in a credit card debt from which you cannot move out easily.
Hence, if you don’t have control on your expenses, don’t use a credit card. Always carry cash because giving cash every time feels you that you are spending much and your sixth sense will stop you to spend next time.
Change your home loan to MCLR:
Recently banks have reduced their home loan rate drastically because they are sitting on a pile of cash after demonetization. Banks’ main source of income is from the interest of the loan given by the bank. If you have taken your home loan before 31st March 2016, the loan interest rate is based on the applicable base rate of the bank. The marginal cost of Lending rate (MCLR) is introduced on April 1, 2016, and the all the rate is applicable for the home loans disbursed after that date
The base rate of a bank is more than the MCLR. Hence, if your home loan is based on base rate, consider a conversion of loan to MCLR basis. The banks will surely not encourage you to shift your loan from base rate basis to MCLR basis. They have put a conversion charge for those who want the change. Generally, the conversion charge is 0.5% of the outstanding home loan plus service tax. You can have low EMI or less tenure when you change the loan to MCLR basis.
Check CIBIL score free:
Are you set to apply for your first home loan? Know your credit score so that you are confident that banks will sanction you a loan. The credit score is an important parameter for banks to sanction a loan. Some persons are not exposed to credit and therefore they don’t have any credit record in their name. And some persons have misused the credit knowingly or unknowingly and have a bad track record. Any credit history is recorded in the credit score. There are loads of other factors also to calculate the credit score.
A credit score ranges between 300 and 900. Banks normally sanction loan to the person of having a credit score of more than 750. Recently, Reserve Bank of India (RBI) has announced that one credit report will be given free to an individual every year. This will grow credit awareness among the consumers as well as people will show to the officials for correction if something is wrong in the report. Credit Information Bureau India Limited (CIBIL) is one such organization which gives the credit score in India. You can have your one free credit report from CIBIL website every year.
Try to follow the above tricks and save money in India. The small savings will help you to save a larger amount for your retirement or other long-term goals. You can also invest in small with these simple tricks which will help you to save a substantial amount over a period of time.
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