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How to manage your expenses

Tackling the high inflation cost is now a priority for individuals and their families. Here are some of the things that can be put in motion so that the individual get value for every rupee that they spend in different areas.

business Updated: Jun 22, 2008 21:07 IST

Tackling the high inflation cost is now a priority for individuals and their families. The erosion of the purchasing power of the household budget is being felt across the nation and every person needs to have a clear plan in mind to tackle the overall inflationary situation. Here are some of the things that can be put in motion so that the individual get value for every rupee that they spend in different areas.

Travel cost
When it comes to travel cost, especially where the distance is not large, it would be better to compare fares across air and rail.

With air fares jumping significantly there is a difference that has arisen between these costs and rail costs. If for just a few hours more there is a cost saving possible, then change in the mode of transport to control the cost.

This would not be possible for long distance routes where surface routes will take a very long time. But even in such conditions, cutting down on unnecessary travel will help cut overall cost of travel.

Optimum use
The other thing to do is to ensure that there is little wastage and optimum use of various products is undertaken.

This will also mean taking proper care of the items and then using them so that they last out for a longer period of time. The areas here can range from household products to consumer goods all of which have seen a sharp run up in prices. One factor that has to be considered is that optimum use should not be at the expense of safety so that there is no compromise on this factor at least.

Better use will reduce consumption and consequently provide some relief to the budget.

Alternatives
Looking out for alternatives will ensure that the individual is able to maintain their level of consumption but at the same time fit the overall cost within their budget.

This can be a substitute product or it can even be a change in the brand used by the individual so that the overall cost remains within the budget. Some of these measures have to be taken so that they are able to manage the entire process and at the same time not find that their standard of living has gone down significantly.