Friday, March 28, 2014

78 ways to reduce or stay away from debt

  1. Exercise daily. Medication cost rises at about 15-18 % per annum.
  2. Stay away from tobacco and cigarette. It not only harms your current health but would also cost you more for term insurance. Already into it? Reduce by half then by another half and finally nil. Do not rush, you would lose motivation. Do not stop.
  3. Reduce alcohol consumption. We all know how much a bottle can burn hole in pocket.
  4. Do not buy credit cards.
  5. Already bought credit cards? Answer: Cut it into 4 pieces.
  6. Identify your wants and needs. Read here. Focus on needs.
  7. In your browser, from favorite’s bar, delete book marked shopping site.
  8. Do not spend spontaneously. Think, think, think, spend.
  9. Going for a walk in mall, without any specific need for ‘needed’ items? Forget credit cards, debit cards at home.
  10. Better do not carry wallet.
  11. Stop eating pastries when feeling depressed. That aggregates the problem.
  12. Buy house as big as your needs; not as big as your banker suggests.
  13. City travel in traffic? Dump that Skoda. Go for smaller cars. It saves fuel, money, time and hustle.
  14. Check the tyre pressure in your car regularly. It affects the mileage.
  15. When moving from one room to another in house, switch off the light and fans.
  16. Branded clothes are good to have only if it fits the budget.
  17. By the way, do you have budget? If not, move this item to #2.
  18. Update your bank account passbook regularly. Check if they have cut any amount unnecessarily. Follow up, get it rectified.
  19. Before buying any financial product, do the math.
  20. Upgrading/changing car every 5 years is good……….. but for bank.
  21. Upgrading/changing house every 5 years is good……….. but for bank.
  22. Some communities have a meet twice a year. There they share and exchange clothes, books, gadgets, furniture, etc. Visit them (find out if your community does that).
  23. A Rs.2 pen writes similar to Parker or Pierre Cardin.
  24. Timex shows you the same time as Swatch or Rolex or Omega. May be X company is less accurate in millisecond but hey, do we all work in NASA?
  25. Your laptop’s memory is inadequate? Going for new lappy? How about buying USB HDD and storing the date from lappy to HDD.
  26. Stay away from endowment plans.
  27. Do not mix insurance and investment. Both the things are sub-optimal in such combined plans.
  28. Vacations are good if they were planned and was part of short term goal.
  29. Vacation on Credit Cards? Disaster.
  30. Stop using CC for the sake of points generated in every trade.
  31. Stop subscriptions to magazines that you do not read.
  32. Stop subscriptions to newsletter from business houses if you do not implement what they preach.
  33. Stop eating out twice a week. Once in a month is OK.
  34. Stop keeping up with Jonasses (Is spelling or the surname important in this line?).
  35. If office is 10 mins walking distance from nearest station, why go by cab? Walk. It makes you healthy as well.
  36. If your workplace is connected by public transport system, do you need own vehicle to commute?
  37. Furniture is not shining as bright as when you bought it? Going for replacement? How about little polishing.
  38. Lending money to friends is a noble act but not when you are living paycheck to paycheck or worse paycheck to CC.
  39. Do not convert CC debt into long term equity home loan.
  40. It is absolutely NOT (repeat NOT 3 times) necessary to own every single latest gadget available in the market.
  41. Do not buy 5 pair of jeans because you went in a SALE.
  42. If you are not serious about excising do not renew gym membership.
  43. If you are not into professional body building, you do not need personal physical trainer.
  44. Stop buying a new dress because all your friends are buying. You do not know their wealth.
  45. Family of 4? Two adults and 2 kids? Why 2 cars: 1 for office and 1 for picnics !!
  46. Flying to parent’s/relative’s/friend’s place? Do you need business class?
  47. Don’t throw away our existing usable clothes just because they are old.
  48. What is the point in buying gold plated wrist watch on CC?
  49. Buying a new cricket bat? Your local store has used accessories for half the price. Stop searching only on internet.
  50. Buying new motorcycle gear because Schumacher recommended? Please compare income first.
  51. Stop sticking to low paying jobs because you are lazy to upload resume on portals and study for interviews.
  52. More high speed motorcycle, more is the fuel needed. Good to remember.
  53. Do not simply buy stocks on tips. Do your research after getting tips and then decide.
  54. Planning lavish marriage? Think again. Money goes down the drain. Invest that money for your happiness.
  55. Enrolling your child  with the school in which your neighbor did? Her husband is in 30% tax bracket, how about you?
  56. Remember: if any deal is too good to be true, it is indeed not true.
  57. Not knowing about taxation can cut your take home by good 5%.
  58. Subscribing to a gym or club house where you favorite football star or bollywood star comes is foolishness. Your income is equal to what he spends on his shoes.
  59. Learn to say NO. A close relative may simply offer you the worst investment product on this earth. Say No. Firmly. It helps. The relation may go sour but your cash pattern is not hampered. By saying no, you got another lifeline. Pat on your back.
  60. All airlines do not offer same fares. Compare. Some may offer discount on CC usage. Stay away from them, you never know when that ‘pattern’ may hurt you.
  61. Do you need cricket gloves and pads for playing with tennis ball? Some do.
  62. Stock broker’s business is to generate brokerage. Know it well. You can surely do intraday trading or swing trading. But remember to cut brokerages from profit and then decide.
  63. Do not trade on margin if you do not know what trading is.
  64. Aware of swing trades? If no, do not jump to F&O.
  65. Do not buy cheap quality footwear if you job is to stand and deliver or even field work. The cost incurred on your foot hurt is way beyond your footwear costs.
  66. Bought costliest trekking shoes? Good. Trekking is healthy hobby. But hey, you trek only once in 1-2 years? Give up that shit hobby now.
  67. Watchmaker’s add: our watch can sustain extreme water pressure. You can even go to Atlantic ocean’s middle deep there. You buy!!! Why? Do you even intend to go deep in Alibaug beach? Won’t a timex or titan watch with 100m water resistant property be good enough for perspiration and occasional hand wash?
  68. Somebody lures you into holiday packages saying you pay X amount today and get to enjoy staying in 5 star hotel at 50% discounted rates. Question: do you intend to stay in 5 star hotel on a picnic and enjoy pool / gym or rather go country side, have a tent, cook food and have fun? Your call.
  69. Remember Robert Kiyosaki’s line: Bankers do not lie. They just do not tell you the complete truth. They say – house is an asset. The complete truth is yes, the house is an asset but for bank. Do not trust them blindly.
  70. If banker says – “sir, this product is available only till tomorrow. You need to hurry.” By all means, hurry but not to get the product. Hurry to run away from that banker. 95% of the times, with above line, he would sell you the most pathetic product from their furnace.
  71. Do not ignore the problem. Accept it and the think on solution. If you are in debt, accept it. Think how to get out of it and then work on it.
  72. Installing low power consuming electronic items in house may prove costly at first time. But the meter bill would thank you.
  73. Do no overspend on your child’s marriage. This is sure shot formula for avoiding debt, especially for Indian parents. Your child’s marriage is not your business, your retirement is.
  74. Be aware of your sexual urge. No, do not get wrong. This line is in financial context. If a smart, sexy, hot girl/lady comes from XYZ company and explains you the product. You are ready to buy. Know exactly why are you buying it. You liked the product or you could not say NO to that girl.
  75. Another Robert Kiyosaki’s line: beware of advice that you are getting and from whom you are getting that. A person accumulating money in SB account advising you why X company’s stock can give 50% returns is risky.
  76. Remember Ashal’s line: Amputing a finger today is better than amputing an arm tomorrow. Get rid of all your bad products from your portfolio.
  77. Plunging into a business without a plan is accumulating more debt.
  78. By the way, plunging into a business with plan but without sufficient cash to fall back on is just another recipe for debt collection.


  1. Dear Viren, I'm impressed with the collection of Ideas. Congrats dear friend.



    1. When Getrich rejected my emergency response post, I had planned to submit this post for Getrich.... Later I came to know that they have stopped accepting guest posts....
      So here it is on my blog....
      Thank you for the encouragement, Ashal

    2. Ashal, on second thought, I think, even this would have been rejected by GRS. The reason is, this is just a collection of ideas and not the creation of ideas... And I studied pattern of GRS... they mostly have personal experiences of how to do kind of thing.. i.e. which they have done personally....
      Moreover, I think I was concentrating too much on posting my article there rather than being innovative....Introspection is needed...

  2. Replies
    1. Thank you Kinjal ...... Glad that you liked it

  3. My knowledge and curiosity in this space is increasing , thanks to your well articulated blogs, Keep it up !!

  4. Thank you Prakash bhai for the encouragement :)