When you buy a car on a loan, be careful about the accessories. Not only we tend to buy unnecessary/expensive accessories because there are no immediate cash outflows from our hand, we tend to forget the interest outflow on the additional loan.
5) Car expenses III
A very good measure to reduce car expenses is to use either company provided vehicles for office going or creating a car pool with either colleagues or neighbours.
6) Never visit a sale
Never visit a sale unless and until you are sure of both; you need those goods and the sale is a genuine one.
| Also Read: 25 Ways to Crack That Sale |
7) Housing loan payouts
When you evaluate the cash flows of most of the people in the age group of 30 - 40, majority of the outflow is accounted for housing loan repayment and car loan repayment. Buying a house for living is always necessary but buying one which is bigger than need entails two important outflows; payment of larger EMIs again loosing in the interest outflow and further a regular high cost incurrence towards maintenance and taxes.
| Also Read: Trim That EMI Bulge |
8) Juggle with various loan options
Be very clear, between home loan and car loan, home loan is cheaper and provides also additional tax benefits. Between credit card loans and personal loans, personal loans are cheap, most of the times. Hence, if you have to compulsorily take a loan, end up taking the one, which is cheaper to you.
9) Mobile phone usage
Look at the total cost of your communication and you can evaluate yourself the wastages incurred due to that. Also, now so many good plans available, try to choose a plan where the cost implications are low.
| Also Read: Are You a Cell Phone Addict? |
10) Prevent expensive gadgets
The best way is to look at utility rather than the show. (Of course, I know I am in the minority in this claim and people generally get carried away so much in these gadgets, they do not even realize what they are doing)
I tried to think differently instead of the usual ones, which is of macro nature for cost cutting. I would like to end with two of the statements passed on to us for generations. Look and buy what you need rather than what you want and other, moving into the next ladder of standard of living is very easy but maintaining that standard is very difficult. If you adopt this in your life, you will never have any regrets.
Author: B Srinivasan
He is a Certified Financial Planner. He may be reached at srini.shreesidvin@gmail.com
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