Money matters are usually stressing, especially when you can’t keep a track on where your money is going. I was extravagant myself until a year back, but one night, my family needed money urgently for an emergency, and I found myself completely broke.

I distinctly remember I only had Rs5,000 in my account. Feeling utterly helpless and ashamed, I looked around the things I had bought earlier that day and realised they couldn’t help an iota. But, money could.

That very night, I vowed to start saving some cash, and trust me, saving has been the best decision of my life ever!

Here are a few things I incorporated in my daily expenditures, and I’m reaping its whopping benefits. You could try these too and see your life transform:

Keep a budget

As easy as it may sound, planning and sticking to a budget isn’t always stress-free. If you are single, following a financial plan might be relatively easier, but in case you have a family, there will always be unforeseen expenses every month.

But some expenses are constant like house rent (lucky if you’re the owner) electricity and gas bills, water tax, groceries, school fees, conveyance charges, etc.

Take an average amount, say RsX and keep it aside as the budget for your utilities. For the first couple of months, try sticking to the average amount RsX. If you can manage within it, take a step further and see where you can reduce the expenditure further.

For example, can you save more on electricity bill or groceries? In case you exceed the utilities budget two months consecutively, it’s time to pause and think where you’re overspending. Perhaps, call a family meeting and discuss the matter openly, so each member takes responsibility and plays his/her role.

While making a budget, it’s pertinent that you maintain equilibrium between your total income and spending. You can’t obviously allot your entire income to utilities and grocery, or spend the remainder in shopping and dining out.

Always, keep a certain amount, however small, for emergencies and miscellaneous activities like kids’ school trip or a wedding gift as such situations can arise anytime.

Pay bills on time

This is an important task yet one that can easily slip one’s mind. With so much going on in life, it’s but natural to forget the due date of bills especially if they arrive in the second half of the month.

Therefore, the best way to curb this situation is to assign this responsibility to one designated member of the family. Elderly fathers, grandfathers or uncles living with the family are usually the best people to fulfil the monthly task since it will keep them busy and active.

Take a look: Money management: Avoid pocket money problems!

Otherwise, housewives or older children can take it upon themselves to pay bills online. It’s advisable if employed members don’t sign up for it as they already have a full-time job to look after and an additional chore will only over-burden them.

Don’t indulge in retail therapy

As much as it helps, retail therapy is the worst enemy of your monthly budget and savings. The ongoing lawn mania, jewellery frenzy and shoe furore are excellent distracters on a bad day, but these will leave a huge and permanent hole in your kitty.

Instead, find other ways to cheer up when you’re depressed, for example watch a movie online, read quotes or talk to a friend to feel better. Impulsive shopping will buy you happiness for a limited time only, but will deplete you of the most essential resource that can indeed help you on a rainy day.

Moreover, while shopping thoroughly analyse your needs and wants. Try restricting your wants of today to fulfil your needs of tomorrow by saving a few bucks. Your future-self will thank you for it.

Use coupons and opt for deals

Dining out for two usually costs about Rs3,000 to Rs5,000 depending on the location of the restaurant and the dishes ordered. For a family of four, the average amount hikes to approximately Rs6,000 to Rs8,000.

Therefore, if you’re trying to save, dining out every weekend or twice a week is exorbitant. Instead, try to dine out just once a month or prepare a lavish meal at home as it would be more cost-effective, more hygienic and certainly more relaxing.

See: Saving: Money matters

Another way you can dine out economically is by opting for deals and discounts. Almost all eateries these days have a variety of discounts, coupons and deals available.

Banks offer 10pc to 20pc discounts if you use their cards while fast-food chains offer wonderful family-size and mid-night deals. Try keeping a track of these offers and dine when there’s a good one on the go.

Plan for emergency

Last but not the least; don’t forget to save for contingencies. Medical emergencies, outrageous utility bills and pricey expenditures can come at any time in life. Once you’ve budgeted the daily expenses, keep a certain amount aside for emergencies.

It doesn’t have to be a hefty portion of your salary, but depositing a very nominal amount every month would be sufficient. In a year, you would have accumulated adequate capital and gradually your emergency fund would expand.

Examine: Money wise: It`s never too early to start saving!

In time, if you deem fit, you can even sneak some money from the emergency fund for an annual vacation or a shopping trip.

Saving is not a day or two’s work, saving is a life-long habit which will benefit you in numerous ways. He who saves is never dependent on anyone. So cultivate this fruitful habit today and enjoy its perks tomorrow.

Published in Dawn, Sunday Magazine, April 10th, 2016