Money saved = Money earned

Taking a few leaves from the books of our parents and grandparents :

1. Ensure that there is an emergency fund stowed away for a rainy day. A job loss, recession, illness etc. could prove to be a temporary setback for which you may incur additional expenses best managed with this emergency fund.

2. Keep impulse purchases to a minimum. Indulging in branded items for certain purchase choices like consumer durables and other long lasting products is fine. However, it does not mean that you should go overboard with being brand conscious all the time. In case of clothes, look out for the sales season where you avail discounts, shop for quality over quantity, which is any day better. However, if you are the kind who loves a lot of variety and like to outgrow your liking for the same kind of clothes over a period of time, indulge in less expensive clothes with a comparatively lesser shelf life, which can be discarded and refilled with other choices.

3. Don't live life king size all the time. Instead of planning a vacation that is out of the continent, you could try a vacation spot in Asia or India, which will bring the same benefits in terms of relaxation and fun and yet be less cumbersome on your purse strings.

4. When there is a boom, there is bound to be crash around the corner. So hold your horses and don't overindulge in luxuries, tomorrow may not work out as planned, nevertheless it is wise to be prepared for it, even if it is bound to take you by surprise. A little foresight could save you from a load of trouble.

5. Take care to have a mixed portfolio with investments in debts and equities apart from an emergency fund and other savings.

6. Debt counselors advise 60% of your income should be set aside for savings and investments and 40% should be able to cover your living expenses as well as any debt expenses you might have incurred.

7. Use your credit card judiciously and keep a tab of your debts to ensure they are safely manageable. In fact do not take a loan unless it fits it well with the rest of your financial goals and you can safely repay it without any stress to your budget.

Bottom line :

Think twice before you spend, after all its "your" hard earned money.