13 HACKS to ENSURE YOU DONT GET POOR! | Money Management Tips 2023 | Warikoo Hindi

Summary

In this video, the speaker shares 13 smart ways to save money, offering practical life hacks based on personal experience. From automating savings and avoiding unnecessary spending, to using UPI instead of credit cards and opting for rentals over purchases, each tip emphasizes discipline and smart financial management. The video also encourages viewers to focus not only on saving but also on increasing income through side gigs and investments. The final tip is a bonus, urging people to prioritize savings and build a financial future without compromising on living well in the present.

Takeaways

• 😀 Automate your savings: Set up automatic transfers to separate accounts to ensure consistent savings and investments.
• 😀 Practice non-spending days: Dedicate one day a week or month to not spending money, fostering discipline and better financial planning.
• 😀 Use UPI over credit cards: UPI transactions are free and help you avoid borrowing money and the risk of accumulating interest or fees.
• 😀 Use credit cards responsibly: Only use them when you can pay the full balance on time, which can help build credit and earn rewards.
• 😀 Stick to a shopping list: Prevent impulse buying by creating a list before you shop, both online and offline.
• 😀 Wait 30 days before making big purchases: Resist immediate buying decisions by giving yourself time to reconsider if the item is necessary.
• 😀 Rent items you rarely use: Instead of buying expensive items you'll use infrequently, consider renting them to save money.
• 😀 Buy larger sizes to save: Opt for bigger quantities when possible, as they often offer a better per-unit cost, provided you have space.
• 😀 Use incognito mode for online shopping: Avoid price hikes from cookies and tracking by using incognito mode for the best deals.
• 😀 Pay off loans early: Focus on clearing debts as soon as possible to save money on interest over time.
• 😀 Invest in life insurance early: The earlier you buy life insurance, the cheaper the premiums will be, especially when you're young and healthy.
• 😀 Create a budget: Use a budgeting strategy like the 50/30/20 rule to track your income and expenses effectively.
• 😀 Diversify your income streams: Focus on increasing your income through side businesses, freelancing, and investments, rather than just cutting expenses.

Q & A

Why is it important to automate savings, and how can it help with financial discipline?

Automating savings ensures that a portion of your income is saved before you have a chance to spend it. This reduces the temptation to overspend and helps you invest consistently, even if you're not always motivated to do so. Automation removes the need for conscious effort and makes saving a habit.

What is the benefit of practicing a 'No-Spend Day'?

A No-Spend Day helps build financial discipline by forcing you to resist impulsive purchases. It allows you to assess your needs versus wants and teaches you to manage your money without the constant temptation to spend.

Why should UPI be preferred over credit cards for transactions?

UPI is a direct payment method using your own funds, unlike credit cards, which involve borrowing money. UPI helps you stay disciplined and avoid accumulating debt or paying extra fees like surcharges often associated with credit card transactions.

When is using a credit card beneficial, and what are the three advantages?

Using a credit card can be beneficial if you have the funds to pay it off in full. The three advantages include: (1) an interest-free loan for 30-45 days, (2) improved credit score through timely payments, and (3) earning rewards or points for purchases.

How does making a shopping list help with saving money?

Creating a shopping list before heading to a store or shopping online helps prevent impulsive purchases. It keeps you focused on what you truly need and reduces the likelihood of buying unnecessary items that can increase your spending.

Why is it smart to wait 30 days before making a big purchase?

Waiting 30 days allows you to reflect on whether the purchase is truly necessary. Most of the time, after a month, you might realize that you don’t need the item anymore, which helps you avoid unnecessary spending.

What are the benefits of renting instead of buying certain items?

Renting items that you don't frequently use (such as expensive gear or gadgets) can save you money. Renting allows you to access high-quality products without paying the full price, which is especially useful for one-time or occasional needs.

How does buying in bulk save money, and what should you consider when doing so?

Buying in bulk often results in a lower cost per unit, helping you save money over time. However, you should ensure that the items have a long shelf life or that you have enough storage space to avoid wastage.

Why should you shop in incognito mode online, and how does it help save money?

Shopping in incognito mode prevents websites from tracking your browsing history through cookies. This helps you avoid price increases that often happen when a website sees you're repeatedly searching for the same item. It ensures you get the lowest price available.

What are the benefits of paying off loans early, especially in terms of interest?

Paying off loans early can save you significant amounts of money on interest, particularly in the early stages of the loan where most of your payments go toward the interest. By reducing the principal faster, you lower the overall cost of the loan.

Why is it better to get life insurance at a young age?

Getting life insurance at a younger age is cheaper because you're healthier and have a lower risk of illness or death. Premiums are typically lower when you're young, which means you save money in the long term for the same coverage.

What is the 50-30-20 budgeting rule, and how can it help with managing finances?

The 50-30-20 rule is a simple budgeting guideline: 50% of your income should go toward necessities, 30% to wants and discretionary spending, and 20% should be saved or invested. This structure helps you balance living in the present with preparing for the future.

Why should you use deal and discount sites, and how can they help you save money?

Using deal and discount sites allows you to find the best prices and offers for products and services. These platforms help you save money by providing access to promotions, discounts, and special deals that you might not otherwise know about.

What is the bonus hack about focusing on income growth rather than just saving money?

The bonus hack suggests that instead of solely focusing on saving money, you should focus on increasing your income. By diversifying income streams (through side jobs, investments, or freelancing), you can grow your wealth faster than by just cutting expenses.