10 Practical and Easy Ways to Save Money
There are two key factors that we should know before we start preparing ourselves to save money: onsistency and the ability to self reflect.
Now, let’s quickly run through the practical and easy ways to save money we have in line for you:
1. Pay Yourself First - The 50-30-20 Rule
- 50% - Spent on necessities (mortgage or rent, car payment, insurance (if applicable), groceries, and so on.)⠀
- 30% - On to-buy-list, such as family holiday you have been promising months ago, the spa treatment that you feel you deserved it.
- 20% - Save it and pay yourself.
2. Make Use of Provident Fund
- Malaysia’s Employees Provident - annual dividend rate is about 6.8%.⠀
- Singapore's Central Provident Fund - specifically the Special Account which is meant for retirement purpose, has an annual interest rate roughly up to 5%.⠀
- India’s Employee’s Provident Fund - annual interest rate is around 8.65%.⠀⠀
In a nutshell, the interest obtained from the investment has been reinvested again and again till the day you retire, can you imagine how much interest earned in total by the time you can withdraw?⠀
3. Frequency of Socialising
- Malaysian spent 26% of their monthly salary on out-of-home entertainment.
- Millennial in United State spent an average of USD49 on going to events such as concerts.
- The average adult in the United Kingdom spent GBP71500 during his/her adult years on having nights out with friends.
Going through self-reflection, it helps us to weigh out the priorities and allow us to be in control on the frequency of socialising, indirectly helping us to save some penny too.
4. Alternative Form of Hanging Out
- Instead of watching movies at the theatre, why not catch the Harry Potter marathon at home.⠀
- Instead of hanging out at the bar with friends, why not a game night at home with friends.
- Instead of Family day out in the mall, why not stroller walk at the park/ picnic at the beach.⠀
In a nutshell, money shouldn’t be holding us back from socialising, we just need to look at it from another perspective and be creative of what we can do.
5. Be a Smart Shopper
- Why: Why do I need to shop?
- What: What do I need to buy?
- Where: Where should I buy the items I need?
- Which: Which brand should I get?
- How: How should I pay for my items?
Be truthful to yourself because once you identify the needs, is easier for you to pursue what you want.
6. Budget, Shopping Lists, and Distraction
- According to CNBC, the average United State consumer spends about $5400 annually on impulse buys, and that’s a lot!
- According to Retail Leader, approximately 64% of Americans found to shop impulsively if there’s a deal, among that, 40% bought something because of a coupon was mailed to them.
- Prior to shopping, it is good to conduct some research regarding price comparison and discounts offer from a different store, but also beware of lucrative deals that you do not need.⠀
Planning before going on a shopping trip is crucial. If possible, make a habit to pay expenses by cash as this helps to constantly be reminded of how much you have left.
7. Make Use of Public Transportation and Carpool
- Using public transportation.
- Carpooling with your colleagues or friends.
- Some drivers do occasionally post their latest schedule on social media.⠀
8. Airfare and Destination
- Gather all the necessary information from all the airlines and travel companies.
- Knowing when is the peak season of booking.
- Instead of overseas, give a chance to explore some undiscovered sights and places in your country which you had never seen before.
9. Eating Out vs. Home Cooked Food
- Eating out could cost more and home cooked food often cheaper.
- Eating out is more convenient and home cooked food slightly tedious.
- Eating out has no control over ingredients used and home cooked food have full control of the ingredients used.⠀
The typical food establishment charges a 300% markup on the items it serves”, according to USA TODAY. Which means if we spend $30 on a meal in a restaurant, we could otherwise prepare the same meal for just $10 if we choose to cook at home.
In a month time, we could save about $600. The amount might seem small but within a year time, we are potentially saving $7200!
10. Good Diet = Good Health = Save Money
- According to Bloomberg US, fast food franchises have been increasing their prices to maintain margins as wages and workers expenses rise.
- Burgers sold in fast food restaurants have a steep increase of 26% over the past four years.
- Obesity is just one of the common phenomenon caused by an unhealthy diet that happened to many people
- Many complications that can develop due to obesity such as, increased risk of certain cancer, high chance to develop high blood pressure (which is a risk factor for heart diseases) and the likelihood to develop type 2 diabetes.
- According to Today News, Singapore’s medical inflation rate has increased to 15 per cent, compared with 10 per cent globally.⠀
Whatever food that we put into our body has the ability to determine our health, and we have the choice to pick what we eat. So be conscious of our diet, as good health leads us to save more money, after all, health is wealth isn’t it?
Regardless of your income bracket, saving money is essential in your path and quest to improve your financial state.
This is all but consistency and self reflection, take your time to cultivate good habits as they provide a strong foundation in your journey to grow wealth.
There’s no hard and fast rule to save money, but finding a one that suits your lifestyle in a long run. Remember, if you were always waiting for the perfect opportunity to look for an alternate source of income, you can always join our community of online paid surveys now!
Comment down below on your ways of saving money, and that’s how we can learn from each other. Till then, all the best!
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