1. The document provides 5 tips for saving money and becoming wealthy: cutting back on eating out, paying bills on time, avoiding impulse buying, quitting smoking, and taking spending freeze weeks. 2. It uses examples to illustrate how small regular savings and investments that earn 8% annual returns can grow substantially over time through compound interest, allowing people to accumulate hundreds of thousands or millions of rupees. 3. Regular monthly savings of as little as Rs. 500-2000 through various tips, invested for 30-40 years, can generate Rs. 5-70 lakhs through the power of compound interest and long-term growth.

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5 amazing money saving tips to be wealthy
By.Dr.Mahboob ali khan Phd
Can you, for instance, imagine how much money you will be able to
make over 40 years by just saving, say, Rs 50 a day and investing that
amount every month in a saving instrument that gives just 8% return
per annum? Rs 1 lakh, Rs 2 lakh, Rs 5 lakh – any guess?
Money begets money – this is what is generally believed. In other
words, this means that the more money you have and you invest, the
more wealth you will be able to generate. (Reuters)

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Money begets money – this is what is generally believed. In
other words, this means that the more money you have and you invest,
the more wealth you will be able to generate. This is also true, to some
extent. However, this is not entirely true. For, it is not only the amount
of money saved or invested, but also your wisdom and the propensity
to save that makes all the difference!
Can you, for instance, imagine how much money you will be able to
make over 40 years by just saving, say, Rs 50 a day and investing that
amount every month in a saving instrument that gives just 8% return
per annum? Rs 1 lakh, Rs 2 lakh, Rs 5 lakh – any guess? Nah, that is a
staggering Rs 52.25 lakh, if the interest on your investment is
compounded quarterly! Of this total amount, only Rs 720,000 is the
principal amount while Rs 45 lakh is the interest earned. That is the
power of compounding – “the eighth wonder of the world,” as
described by Albert Einstein.However, this is not all that easy do do.
For this, you need a disciplined approach towards all your financial
matters and consumption habits. Here we are taking a look at 5 easy
ways that can be done:
Cutting Back on Eating Out: These days many people,
especially working ones, avoid cooking at home and love eating out.
True, giving yourself and your family occasional treats or eating out
sometimes is not bad. In fact, it has become essential in today’s world
for many reasons, one being that it helps you spend quality time with
your friends and family. However, eating out regularly is not only bad
for your health, but budget also. If you are able to save, say, only Rs
1,000 per month by cutting back on eating out, and invest the sum in a
product that gives you 8% return, then this will help you generate close
to Rs 5.92 lakh in 20 years. If you save Rs 1,000 for 30 years, then this
will become Rs 14.94 lakh and in 40 years you will be able to
accumulate around Rs 34 lakh! Is it bad?

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Paying Bills on Time: All of us pay various bills every month,
which include phone bills, electricity bill, gas bill, credit card bill,
school fees, and maintenance bill (if you are living in a society), among
others. We are also aware of the fact we have to pay late fees if any bill
is not paid on time. However, how many of us pay our bills on time?
The fact is a lot of people pay Rs 500 to Rs 1,000 every month as late
fees alone and they have no regret. The problem in most cases is not of
money, but of laziness. However, even if you are able to save, say, Rs
500 per month by paying your bills on time and the same amount is
invested, then you can make big money over the long term. For
example, Rs 500 invested every month in a saving instrument which
yields 8% return, can generate around Rs 17 lakh in 40 years!
Avoiding Impulse Buying: We all love to shop. However,
do you often purchase something and then get it home to find you aren’t
excited about it any longer? Or that you just don’t need it? It happens
with most of us. Therefore, if you are in the habit of spending on
impulse, make an effort to have a moment of reflection before buying
anything. If you are able to save just Rs 2,000 per month and invest the
same every month in a saving instrument which yields 8% annual
return, then it will help you generate around Rs 70 lakh in 40 years and
around Rs 30 lakh in 30 years!

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By Quitting Smoking: We all are aware that smoking is
injurious to health. If you are also a smoker, but are now looking to quit
smoking, then try to keep aside the money for every cigarette that you
do not smoke. If one cigarette costs, say, Rs 10 and you usually smoke
20 cigarettes a day, then you would effectively set aside Rs 6,000 in a
month if you successfully manage to quit smoking completely. Invest
this amount every month in a saving avenue which yields 8% annual
return, and it will help you generate around Rs 2 crore in 40 years!
Taking ‘Spending Freeze’ For a Week: Another
important way to save money and keep a quality budget is by going for
‘spending freezes’ or taking a ‘no buy’ break for a week. This means
during such periods, you won’t buy anything new or go shopping.
Exceptions to the ‘no buy’ time might include paying for medicines,
food and emergencies that come up like someone getting sick. Save the
money you would have normally spent during the day or week you are
on the ‘no buy’ break and invest that amount by the end of the month.
This will also help you generate a big amount over the long term!