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Money saved is Money earned!

August 29, 06 by Bharani

Once in a while, I go into crazy introspection…Today, I was thinking about the money that I could save, if only I looked at the following items.

1. Transportation: I spend on an average Rs.50 to Rs.60 per day for auto-rickshaw. There is a shuttle service provided by the company. Yet, I utilize the shuttle service only one way. If only I utilizie the service both ways, I can save Rs.1100-1250 per month!

2. Dinner: My firm provides the dinner free of cost and the quality is good. Keeping the food cost at Rs.50 on an average, I could save again Rs.1000-1100 per month! Yet, I take food at home (and I have to manage crisis most of the time, as I reach home late!!) or go out for restaurants…

3. Telephone calls: I make telephone calls to local friends from my mobile. I end up spending Rs.10-20 per day on an average. If only I use the office phones, I can save Rs.200-450 per month!

In total, I could save Rs.2300-2800 per month (and works out to Rs.33000+ per year)! But, I forego this potential savings in the name of convenience and flexibility. My opportunity cost for convenience and flexibility (just in the 3 areas mentioned) is Rs.33000 per year!!

I am planning to buy X-box and some games when it is released in India this Diwali. If I compare the X-box with “Convenience and flexibility”, it motivates me to forego the convenience and flexibility 😉

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