A couple of years back, I was stepping out of our home for a stroll. At the door, my wife asked me whether I could get some provisions. Without much forethought, I nodded. On my way back, I looked at the message Ashwini had sent me. In that list were a few grocery items and fruits. I then realized that I was not carrying enough cash with me.
I could have returned later in the day with more money. But, I decided to challenge myself. I pruned the list down. For instance, there was Sago (Sabudana) in that list. We need it mostly on fasting days. So, it was not an urgent item to purchase. I dropped apples and decided to buy only bananas. Most of the time, the last couple of bananas go bad because nobody likes them once they turn black and soft. Therefore, I bought only half a dozen instead of a dozen. I told the vegetable vendor that I did not have enough cash. He insisted that I take the vegetables and pay him later.
This experience got me thinking. These days, most of our purchases are non-essential. We buy things without evaluating alternatives and necessity. I, therefore, decided to go on a financial diet for at least one week every quarter. I immediately realized a lot of benefits. I learned to design a website using Wix.com. I learned to use Mailchimp for email marketing, learn Hubspot as my CRM tool, get the GST and other licenses without a consultant. To date, I haven't spent a penny on these things. I learned to manage my accounts and GST returns using Quickbooks. I spend only 8000 Rs/year on this as a subscription cost. I realized that I went to Navi-Mumbai exclusively to replace my car tires. Now, I club it with some other meeting. The COVID 19 lockdown has revealed how we can manage in a fraction of our original budget. During the financial diet, we get to know our creditworthiness and standing in the market.
Metrics: Go on a financial diet for seven days in a quarter. Review your expenses and find ways to cut down your recurring costs. Merge activities and eliminate wasteful expenses. Do not carry your Credit Card or withdraw money from the ATM during this period.
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