We asked you, dear readers to share your best tips on saving money. Sudhir Mateti, 49, from Pune shared his six golden rules.
According to Sudhir Mateti, 'The most common mistake people make is planning to save with the wrong formula.
'A commonly used formula is: Income - Expenses = Savings.
'My formula is: Income – Savings = Expenses.
'(In the first case) we have to forcefully save money and manage expenses in the balance amount left,' he says.
He also shared some pointers from his life.
1. 15 per cent of his net income goes into savings.
2. He pays all his bills annually and takes a discount on annual payment.
3. He buys time for payment whenever there are no discounts and no charges are applicable.
4. Stitch in time saves nine! Periodic maintenance of vehicles and electronic devices saves a lot of money.
5. Clear financial goals and proper planning helps in saving too. All big ticket items are planned and a research on it has helped him save as much as 25 to 30 per cent (it includes house, car and home decor, AC and home renovation, etc).
6. His purchases are according to the needs and not based on a wish list or offers. For him, having financials planned is as important as health.
We ask you, dear readers do you have any smart, effective and useful tips on saving money?
Have you applied these tips? Did it work? Share your tips and we'll publish the best ones on Rediff.com.