Need to Save Money? Start Small

Need to Save Money? Start Small

Columnist and financial advisor Leena Parwani on the importance of small savings at the right time
Need to Save Money? Start Small

 Beautiful Money By Leena Parwani 

Do you know what your real assets are? Let me tell you this true story of two friends both of who worked in a large IT company and had the same level of income and education. They earned similar salaries.

One had started saving nearly 15 per cent of his income and managed his expenses too while the other started living it up. At one point, both of them got married and they got salary increment as they progressed in their careers. The first guy still followed the same habit of saving and in a few years, his savings were enough to invest in equity. He started making small passive income on interest on his savings which contributed to his total income.

The second guy, after getting a raise, decided to invest in a big house and nicer car. The first one chose to opt for a small house on rent. One fine day, he heard about a 70-year-old lady near his house who was looking to sell her house as she was badly in need of money. The ‘saver’ latched onto the opportunity. He had enough money for the down payment and borrowed some from bank. He was instantly able to get extra income by renting that newly bought house. He started paying 50 per cent of the rental to the bank as instalment of his loan while the remaining sum was his additional income.

Do you see the difference between both the friends? It was not because their salaries were hugely different, it was because one was keener on increasing his income through his habit of saving money. Small saving matters as you are better prepared to grab the opportunity when it arises.

So start a new saving plan today and get into discipline of saving. This habit will take you places.


1-    Cut down one expense a month which is not a need, but one of your “want”, like say, a kitty membership.

2-    Distance yourself from show-off friends. You can’t match the lifestyle you don’t belong to. But you will end up eating your savings towards additional expenses.

3-    Think what you are going to lose, associate yourself with those who have positive money habits.

4-    Start bargaining. Do you know what benefits you have in your credit card? Know more about the discounts and use them, don’t get carried away with unnecessary use of credit card.

5-    Delay your decision to buy new furniture/ car/ designer clothes! These are not assets, these expenses eat up your income.