Pranjal Kamra on how to curtail lifestyle expenses and save money

economictimes.indiatimes.com:

Pranjal Kamra, CEO, Finology Ventures, says: “Whether to take the Rs 500 movie ticket or Rs 200 depends on how much money is left in that 30% need bucket. That is how you change your monthly lifestyle and also upgrade it if your planning is well. How will that planning be well? The next 20% you keep investing and keep SIPing so that in the long run, you have more money in your 30% bucket every month through passive income.”

What all comes under the bucket of lifestyle expenses? I would say lifestyle expenses are expenses that are born, not out of necessity but out of desire. Just to give you a couple of examples; you know probably if you are going to a movie theatre and you choose to sit in the last row lounge chair that costs Rs 500 instead of choosing a front seat for Rs 200. The additional Rs 300 is pure lifestyle expense. Sometimes going out with family is a necessity. So your movie expenditure could be recreation and entertainment expenses are partly necessary but choosing the most expensive seat is purely a lifestyle expense.

Unlock Leadership Excellence with a Range of CXO Courses

Similarly for your health, there are two ways; you could go for a run or walk in the park or you could join a very expensive gym. Now that membership fee of that expensive gym is a lifestyle expense. Such expenses which are born out of desire, living a certain way are lifestyle expenses.

One very important aspect is that your lifestyle keeps changing and your expenses also keep changing. It may be very important to sit down and track all your