NEWS
COLUMNISTS
STOCKS
MUTUAL FUNDS
TAX
INTERVIEW
REAL ESTATE
GOLD
CURRENCY

Managing monthly expenditure

Niharika Bisaria

Are you getting bothered about your monthly household expenses? For most of us, the bills never stop pouring in, while incomes tend to remain fixed. Our credit card bills often mount and though we hate it, we need to borrow money once in a while from friends and family. Living in debt can become a habit and that too not a good one. So, let us take a check on some of the items most of us spend on and try and follow some simple rules for living economically.

There is expenditure on house rent, electricity, water, society charges, telephone, domestic aid and medical bills which one cannot do without. Though these charges may come to you at quarterly or bi-monthly intervals, remember to account for them in your monthly expenditure plan. This will help you, not only to plan your budget better but also to keep these charges down in whatever way you can.

For most of us, house rent is a fait accompli, but electricity charges can be controlled. Follow some simple rules:

• Use tubelights instead of incandescent lamps. A 40-watt tubelight gives more light than a 40-watt lamp. Even though the capital cost is more in a tubelight, the electricity consumption is lower and it lasts longer.

• Try switching to compact tubelights. Though they are costlier than normal tubelights, they are easier to install and consume only about 11 watts of electricity.

• Don't run fans unnecessarily at swift speeds. Try and use electronic regulators instead of resistance ones; the loss of power is greater in the latter.

• Lower the expenses on your refrigerator by not keeping it open for long. Cool food at room temperature before placing them inside the fridge.

• Keep food in aluminium or light steel utensils in the fridge, as it will save power consumption.

• Remember to switch off fans, lights, the television when not in use.

Apart from electricity bills, fuel consumption can be minimised by using gas more efficiently.

• Don't put cold food on the gas. Allow the items to cool, as it will consume less energy to heat them.

• Don't switch on the gas before all the items are ready for cooking.

• In case your gas consumption is increasingly high, measure the weight of your cylinder on a weighing balance when it is delivered by the gas company to make sure it measures approximately 14 kgs.

You could also try and keep your telephone bills low.

• Think twice before making a telephone call. Do you really need to call? You could also remember that a phone is not an alternative to a social call, so make short calls.

• In case you are phone addict, get a 3-minute timer installed on your phone. This will either disconnect the phone after the first three minutes, or give you a beep to make you aware of the time.

• In case you avail of the STD facility, remember to call only during hours when concessional tariff is available. The rates, on working days (Monday to Saturday), are one-third the full rate between 0600 hours and 0700 hours and 2030 hours to 2300 hours. They are half the full rate between 0700 hours and 0800 hours and 1900 hours to 2030 hours. The rates are one fourth the full rate between 2300 hours and 0600 hours. On Sundays and National holidays the rates are half the full amount right from 0700 hours and 2030 hours. If you need to make an ISD call, send an e-mail instead.

Conveyance costs are sometimes the highest in one's monthly expenditure chart in a city like Bombay. You could decrease these by:

• Join a car pool to commute to office or to send your children to school.

• Plan your schedule better, so that you can walk short distances, instead of jumping into an autorickshaw or taxi.

• Keep the maintenance expenditure on your car to the minimum, by keeping it in good running order.

Children-related expenditure mounts daily. Apart from school and college fees, parents spend a lot of money on entertainment, food and clothing. Remember to keep these costs under control. You could start off by taking children to parks instead of to the movies. You could encourage them to play indoor or outdoor games instead of visiting pool and video parlours. Children could be educated on how it is important to live within the family budget. You do not need to get the best clothing or take your child to the best restaurant. Second best will do as well. Invest the saved money in higher education for your child. Or invest in a good growth scheme in his/her name.

To save on items of daily use like food, cosmetics and daily provisions make your monthly purchases at a co-operative society. Use seasonal vegetables wherever possible and if time permits, make your purchases from a wholesale vegetable market, as you will get better vegetables at lower cost.

Tell us what you think of this feature