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Let me show you how small costs can add up!

It is very common for small costs to cause a much bigger dent in our wallets rather than those extravagant products.

We spend a major portion of our time spending. We spend our money to get to work, we spend our money to eat, we are constantly spending money. However, when we buy something expensive – or splurge – we get very conscious. For example, if you were to buy an article of clothing which was priced at Rs. 3,000, you would think twice before purchasing (or not purchase it at all). But there are day to day expenses which we take unknowingly, also has the capacity to create a dent in our pockets.

1. Taking a rickshaw for short distance

It is an everyday common occurrence. We are running late and we get lazy and don’t wish to walk to a location which is close and we call out to a rickshaw. This is something which we often do but don’t realise can actually increase our expenses. For example, it is very easy for an individual to walk 1 kilometre however taking a rickshaw is much more convenient and faster. However, the Rs. 18 every day (if you stay in Mumbai) adds up to more than Rs. 500 which can be saved for other purposes in the future. Furthermore,  it is much better for your health to take a walk. Simply get out of your house a little earlier and start walking shorter distances.

2. Eating outside because you are ‘too tired’ to cook at home

This is another bad habit which can add to your monthly expenses. There are many examples of days when we are very tired and wish to order food from a restaurant, as opposed to cooking it at home. This can be an extremely fast way of spending your money if you do it often.

3. Not bulk buying groceries

So you don’t eat outside but still you waste money by not bulk buying your groceries. You are too busy to go to a supermarket and purchase in bulk and in discount. This adds to your cost because when you are in a rush you tend to buy the product that you need without looking at various shops.

4. On-demand subscriptions

This is another cost which eventually adds up. Since subscriptions like Netflix are generally auto-pay, meaning that they will automatically deduct the value from your account every month, it is much harder to remember the cost of them. We need to learn to analyse the value that we spend on monthly subscription and if we actually use it that much. It is highly common for us to spend 2 – 3 months where we don’t even watch 1 movie, but we still pay for the monthly subscription fee. Perhaps we can consider sharing the bill with a couple of friends so that the cost becomes cheaper for us as individuals. For example, Netflix costs Rs. 500 for a single person, however if you have 4 friends then you can purchase the premium various and pay Rs. 800 together which will only cost Rs.200 for you individually. 

Small costs can definitely add up. It is our job to make sure that we stay vigilant and aware of how much we are spending and the actual impact of it on our monthly budget. However, it is very common for small costs to cause a much bigger dent in our wallets rather than those extravagant products. This is mainly because when we see a price tag on an extravagant gift we think twice before purchasing the product. However when something is cheap and we do it often it starts getting expensive to fund that activity.

One way to make sure that you are getting extra from our savings is to open a savings account that gives you high interest rate. Click here to know about the features and benefits of the different savings account.


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