8 expert-backed hacks to trim spending and grow savings
Sometimes, it’s that PlayStation 5 or a luxury watch that irresistibly catches your eye. Other times, a sale pulls you in, and before you know it—poof!—you’ve splurged on a pair of headphones you didn’t actually need.
It’s a universal feeling. Many of us feel dismay at the sight of a depleting bank account by the end of each month. While essentials like rent, food, and transportation understandably consume a chunk of our income, other discretionary expenses often sneak in and derail our savings plans. The good news? With some strategic adjustments, you can pare back non-essential spending and regain control of your finances.
No doubt, it gets tough. So, counter those urges of spending unnecessarily, we spoke to Dubai-based Akshay Sardana, the vice president, - Strategy & International Development, The Continental Group, on how one can really cut corners and save properly for a month. As a financial advisor, he enjoys spending his time help others secure their futures. And, so, when it comes to his own family, the responsibility feels a lot more personal. “Financial planning for me isn’t just about spreadsheets or numbers. it’s about creating a sense of security that allows my loved ones to thrive, no matter what life throws our way,” he says.
Creating a cushion for the future
For this process, he emphasises on open conversations on wealth, health, responsibility with his family. “We’ve explored the significance of financial discipline, the value of thoughtful decision-making, and how to weigh the benefits of long-term security and short-term gratification before any major purchases,” he says. In other words: Everyone needs to be on the same page, and this help him develop a structured approach to managing expenses, savings and investments. For starters, he keeps aside a little every month to create a cushion for the future, and plans the month in such a way that he never has to even touch the savings.
A spending jar, anyone?
As Sardana explains, saving money doesn’t have to mean sacrificing joy or drastically altering your lifestyle. It’s about making smarter decisions and creating mindful spending habits. "Focus on spending money on things that truly align with values and long-term goals, experiences over material goods," says Sardana, adding that he and his family have a 'jar' for surf trips, hike trips and ski trips that everyone can contribute to. He also follows several apps, such YNAB and Mint, that helps you allocate everything for a purpose, and adjust your spending habits, track expenses and credit scores in one place.
For non-essential purchases, wait 72 hours before buying. This prevents impulse spending and ensures thoughtful decision-making...
So, with his suggestions, here's a guide to help you cut corners and save money within a month without succumbing to random, impulsive expenditures.
Step 1: Understand your spending habits
Dubai-based Anish Bhargav records his expenditures for two weeks. As he suggests, you can categorize these expenses into needs, rent, groceries, utilities, and wants entertainment, dining out, and luxury purchases. Moreover, identify your patterns. Are you buying coffee every morning? Ordering lunch when meal prepping could save you money? These little indulgences add up quickly, he says, from experience. “I really didn’t need a tea and a café sandwich every morning, I realised. So, I cut that down.”
Step 2: Pay yourself first
Set a fixed percentage of your income to automatically transfer into your savings or investments, as soon as salary is paid. This prioritises savings over spendings. Determine a realistic savings amount for the month. For example, aim to save 20 per cent of your income. Break it down into weekly or daily goals for better tracking. Or, you can set up an automatic transfer to your savings account each payday. What you don’t see, you’re less likely to spend.
Step 3: Create a realistic budget
Next, you need to focus on the essentials. Allocate your income to three main categories:
Essentials (50 per cent ): Rent, groceries, bills, transportation.
Savings and debt (30 per cent): Emergency funds, loan repayments.
Wants (20 per cent ): Entertainment, dining out, subscriptions.
Step 4: Cut down on food expenses
No doubt, it’s tempting to order in after a tiring day. It’s much easier than cooking. And yet, that’s where all your money goes. So, as Sardana suggests, plan and prep meals. Create a weekly meal plan and stick to it. This reduces the temptation to eat out or order in. Another alternative is, cook in bulk and store meals for busy days. Take care to shop smart, too. For instance, go to the store with a shopping list and stick to it. Buy your bulk staples, stock up on rice, pasta, beans and other non-perishables during sales.
Step 5: Eliminate or pause unnecessary subscriptions
Bhargav realised that he had subscribed to over 10 different entertainment applications alone, and that itself was turning out to be a drain. So, audit your subscriptions carefully. Cancel the ones you rarely use, or downgrade to cheaper plans.
Step 6: Set a weekly allowance
Bhargav suggests: Withdraw a set amount of cash each week and use it for discretionary spending. Avoid using credit cards unless absolutely necessary to prevent overspending. Moreover, stick to the ‘24-Hour Rule’. For any non-essential purchase, wait 24 hours before buying. Often, the impulse to purchase fades.
Step 7: Embrace free or low-cost entertainment
You don’t always have to rush to every concert that’s in town. Explore local freebies. So, you can consider free parks and other events. Use these opportunities for a low-cost outing. How about hosting potluck dinners or movie nights with friends instead of eating out?
Step 8: More hacks
Sardana suggests: Save an increasing amount each week, to build savings gradually. Allocate No-Spend days, or weeks. Set specific days or weeks where you spend nothing beyond essentials.