India is said to be one of the fastest growing nations in the world.  Our economy is poised to grow to the greatest levels, at even eight percent, accordingly to some experts.  While GDP growth is good for the country, as a whole, individuals and families are facing the toughest test ever, in their lives, in as many as twenty years or more -- record inflation, particularly of food items.

Since the petrol prices are increasing day after day in the international market, the Government claims that subsidies on petrol products cannot work anymore.  Petrol prices have virtually gone through the roof, though the traffic congestion on roads has not decreased.

It is in this scenario that we need to understand how to cut costs to the maximum extent in our family life. In fact, this will help us to save some money for the future, which will help us in times of need, particularly when we start getting old, and are over fifty years old.

This is exactly why we always need savings with a twenty or twenty five years span.

Not, let us focus on cost cutting.

As far as vegetarians are concerned, it is but essential that families realize that it is important to cut costs on all items of expenditure.  What is healthy and also available cheap should be consumed more.  For example, the greens ( called palak in Hindi) are very good and are available for comparatively lesser prices.  If a family consumes this three times a week, the expenditure on  vegetables can come down.  Switching over to wheat based products is also a solution, more so, for dinner.

Similarly, the non-vegetarian people should limit their intake of meat to just once a month.  Once this is done, there will be substantial savings, which one can easily observe.

Even those who have cars, should limit their usage, and go by bus or other much cheaper public transport, as this can easily cut down expenditure on petrol, which is one of the costliest in all middle-class families.

A big expenditure that can be easily cut is the "eating out" on weekends, limiting this to just once a month.  Actually, one is forced to spend on this rather wasteful expenditure, mostly, as a means to be in the rat race, or to just show off. Remember, we are masters of our own destinies.  When we are in trouble, none will help us.  On the contrary, they will simply mock at us.

We can indeed attend many marriages, but presentations should be within our limits.  Those relatives and friends, with whom we have very good relationships, will not look for grand presents from us.  They will just look for our caring and affection at all times.

A particular item of expenditure that can be really avoided is seeing the horrible movies in theaters at enormous cost.  Why should we do this when we can see them on television after some time? 

Many middle class families spend huge amounts on "fashionable clothes" and grooming, including visits to the spa or beauty parlors or both.  Why should this be done at all?  One is really surprised to find those who are above 65 years, doing all this.  This is a really wasteful expenditure, particularly when one is 40 years or more.

Only when we account for each expenditure, we can understand where we can cut down expenditure, and how.  In fact, a very accurate appraisal of all costs will help us to zero in on any item that can be minimized or done away with.

We should remember that we live our lives for ourselves and our families.  The future will be horrible if we do not have adequate money.  For example, by the 2022, even assuming that there are no other financial commitments, a very ordinary middle-class family, with pure vegetarian food habits, will need at least eighteen thousand per month, for food, and all other basic amenities.  For instance, the air-conditioners are now becoming necessities in summer.  No one can live within the house, without at least one AC.

So, unless we save some money and pump that into a recurring deposit, we will not be able to manage at that point in time.  We should make savings our habit, after we cut down on our wasteful expenditure. 

Let us not have any illusion that inflation will come down.  It will not.  The cost of all food items will go through the roof.  So will costs of education, transport, and entertainment.  Nothing will be cheap.

The only way is to cut down on costs, and we need to be very systematic in this, if we can live a bit comfortably in future.  Let us learn to cut down costs as a way of life