X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Are Some Mobile Apps Ruining Your Financial Health? - Outside View by PersonalFN
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Are Some Mobile Apps Ruining Your Financial Health?
Jun 2, 2017

Ayushman, a young digital marketing associate, was always fascinated with the mobile applications. He had an app for every small and big task he did. For example, he had an app for booking a cab, ordering food, shopping, entertainment, and some wellness apps that could record his snoring pattern, a calorie counter to maintain a balanced diet, etc.

There is no doubt the virtual world is fast replacing almost everything manual. Thanks to technology, all this is possible now.

But are mobile apps really simplifying our lives?

Is this convenience for free? Or, are there some hidden costs?

Let's look at how Ayushman realised it is always the small little things that matter in the larger picture called life.

  1. Daily Cab Aggregators Apps

    Ayushman for convenience sake was habituated to booking a cab to work via a mobile application every day, and he paid Rs 90 for it, when a local auto rickshaw ride would normally cost Rs 60.

    He can easily save upto Rs 900 monthly, adding up to Rs 10,800 on an annual basis if he had chosen a rickshaw ride over a cab.

    Although these paid-cab services compared to public transport are more comfortable, what lures you is the discounts and cash back offers and you're hooked. In time, conveniences become habits, compelling you to change preferences. Travelling in air-conditioned cabs will definitely give you a short-term comfort, but may drain your finances, unless you begin to make prudent choices.

    As wisdom dawned, Ayushman decided to get back to the basics. He used this saving of Rs 10,000 for a short weekend gateway instead.

    For a short distance, make it point to walk down. This will prove good for your health, experience the streetscape, and even manage your budgets prudently; because a rupee saved, is always a rupee earned.
  2. Food Apps

    Further he used various mobile applications to order his lunch every day at work. In fact, he had found one app which could also get him homemade food. A daily lunch out would cost him minimum Rs 200. That would mount upto Rs 4,400 monthly and Rs 52,800 annually (assuming he worked for 22 days in a month).

    Also, he had got into the habit of dining at fancy restaurants every weekend. On an average, he would spend Rs 1,000 - 1,500 for every such dine outs. Now that sums up to whooping Rs 48,000-50,000 for a year, that is almost half a lakh.

    Soon he realised, it was not only affecting his physical health -binging on mostly junk- but also affecting his financial health. He gave up this habit, and thereafter indulged only in homemade food cooked all by him.

    The money saved was invested in mutual funds - through Systematic Investment Plan (SIPs), which infused the habit of saving and investing systematically to compound wealth. He opted for Flexi SIP facility to adjust his investments monthly as per the monthly expenses.
  3. Shopping Apps

    "If you buy things you do not need, soon you will have to sell things you need." - Warren Buffet, the legendary investor has so aptly said.

    So, always make a list before you go shopping. Buy things only which you need, not what you want or desire; because your needs can be met but wants are often infinite. Thus, give up the impulsive buying habit, and purchase what you need and can afford.

    Today, online shopping apps are unfortunately inducing many into spending extemporaneously by tapping a few buttons on the smartphone, tablet, and laptop. They offer several discounts - running almost all through the year - so alluring, and as a result you end up buying unnecessary things. For example, the BOGO (Buy One, Get One FREE!) offer on sweaters in the month of early March, when it's almost the end of winters, at least in India.
  4. Entertainment Apps

    You can also cut down on the cable expenses by unsubscribing to channels you don't really watch. You can re-consider your subscription for high definition or premiere channels offered by your cable operator. You can also customise your data pack and subscribe for channels that watch regularly. Will you really watch 500 channels a month? Mostly likely, not.

    Hence, consider tweaking your data pack.

To Sum-up...

Don't be another Ayushman, who of course works hard but party even harder. Do recognise the value of your hard-earned money and utilise it to give you optimum returns.

Take charge of your finances today, and ensure that your financial health is at its best. Stop being a reckless spender. Instead, save and invest money for your long-term financial wellbeing, where you can accomplish many of the vital financial goals in life.

Start your journey towards financial freedom today! Reach out to a Certified Financial Guardian, who is mark of trust and respect - who'll handhold you to attain financial nirvana.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Equitymaster requests your view! Post a comment on "Are Some Mobile Apps Ruining Your Financial Health?". Click here!

  

More Views on News

How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

Jun 10, 2017

Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

How To Read Your Mutual Fund Account Statement Correctly (Outside View)

Aug 17, 2017

PersonalFN simplifies the mutual fund account statement for you.

This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process) (The 5 Minute Wrapup)

Aug 17, 2017

A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

Which Gods Will Bring Down the US Empire? (Vivek Kaul's Diary)

Aug 17, 2017

Mr Trump is in the White House and the gods are in their heavens; what's not to like?

Will They Haul Off Trump's Statue, Too? (Vivek Kaul's Diary)

Aug 16, 2017

All across the country, the old gods become devils. New, gluten-free gods take their places...

More Views on News

Most Popular

Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

Aug 7, 2017

The data tells us quite a different story from the one the government is trying to project.

Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

Aug 4, 2017

The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

Aug 8, 2017

Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

Signs of Life in the India VIX(Daily Profit Hunter)

Aug 12, 2017

The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

Aug 7, 2017

Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

More

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Aug 17, 2017 (Close)

MARKET STATS