MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Boost Your Savings With An Entry-Level Salary

Surviving expenses as a fresh graduate in your first “real-world” job without anyone to depend on can be tough at times. Living from paycheck to paycheck, you will need to find strategies to help you save more. Aside from budgeting, here are 6 ways to boost your savings on an entry-level salary…

1. PACK YOUR LUNCH

After going to grocery, prepare your meals for the week. Packing your own lunch will not only help you save but it is also healthier. This strategy has worked for me very well before and has reduced my meals to S$5-10 a day.

2. TAKE PUBLIC TRANSPORTATION

Being in a country with an efficient transportation system, I do not see the reason why there is a need to take a cab in short distances. Buy a Public Transportation card (EZ-Link card) that you can use for trains and buses to save more. If you still want to drive via car, then carpool with your coworkers who live nearby.

3. MAKE YOUR OWN COFFEE

Your daily sip on Starbucks could be costing you a lot. Brew your own coffee for free instead. You can either make your coffee in your house before you leave or in your office during lunch breaks.

4. ATTEND INEXPENSIVE FUN EVENTS

Save without compromising fun by going to free or inexpensive events. You can search for free museum days, charity concerts, and outdoor films. There are some community events and workshops that charge as little as S$2 so keep your eye on those.

5. NETWORK WHILE YOU PARTY

Socializing with other people can widen your resources and potential business partners. But, it does not mean that you should splurge on drinks. Indulge on drink deals as much as you can during happy hours to save more.

6. BUNK WITH ROOMMATES

Living alone with an entry-level salary is not ideal. So, find friends or co-workers who can split the rent finances with you.

Image Credits: Robert Judge via Flickr

You will not only have a load off but you will also enjoy an awesome company of people who can go with you while you attend free events, happy hours, and great sales.

Don’t think it is possible? Then read how a Singaporean saved $20,000 in a year: http://goo.gl/7cUIC1

Psychology of Spenders And Savers

There are two types of people in the world: those who spend and those who save.

SPENDERS

Compulsive spenders do not want to delay gratification. If they want something, they will purchase it right away…as long as they are happy. It worked so well in the past, so they stick to the same habit. But, when expenses and debts extremely increase then, it is the time they realize that they need to kick that habit away.

Here are 3 ways to prevent your impulses and to help you save:

1. IDENTIFY YOUR FINANCIAL GOALS

How much do you need when you retire or how much do you need to pay for your child’s education? Ask yourself these questions to identify your financial goals. Then, be vocal about it to your friends and family.

2. NEED VS WANT

Before purchasing anything, evaluate and know whether you need or want the item. Then, purchase according to your budget.

3. STAY AWAY FROM THE PLASTIC CARDS

By using mainly cash and withdrawing it from your bank account, then you became more aware of your spending and your account balance.

SAVERS

For financially aware individuals, the act of spending can activate neural activity in the anterior insula and amygdala. These two parts are responsible for the mood and unpleasantness felt. This is why the more these two are activated; the less likely a financially aware individual will spend. On the other hand, the act of saving will bring immense pleasure to them.

While many people take pleasure in purchasing things, some savvy savers do not feel the same. Instead some of these people are uncomfortable when shopping, they constantly look for the price tag and calculate the total, and they feel emotionally painful when they are paying. If you are not experiencing enough pleasure in life, you deserve to loosen up and enjoy spending every once in a while.

So, what brings the pleasure back as a savvy saver that is spending?

1. STAY AWAY FROM THE PLASTIC CARDS

Give yourself the vacation or rest day you deserve by budgeting a portion of your money to a category called “personal incentives”. With that money, you would not need to use your credit or debit card since you have already set aside the cash to cover it. Now all you can do is relax and take your mind off the expenses.

2. PURCHASES=REWARDS

At the end of the month and once you meet your savings goal, reward yourself with the pampering you deserve for working hard and doing so well. To prevent frugal fatigue, reward yourself by using a responsible amount of 4% – 8% of your savings.

3. THINK OF THE FUTURE

Study has shown that people are happier when they spend their money on experiences (e.g., sky diving) than in goods (e.g., Gucci bag). So, do the same with your personal incentives. Do you really want to regret experiences you did not take because you don’t want to spend money on enjoyment?

Image Credits: Tax Credits via Flickr

Even though you belong in one category now…you can still change! Whether you are a saver or spender, you hold your financial present and future.

Budget 2015: What it means for you and me

Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam announced on in Parliament what to expect for the Jubilee Budget.

As PM Lee reiterates: “This year’s Jubilee Budget focuses on the future, building Singapore and helping Singaporeans prepare for changes to come.”

It is evident Budget 2015 aims to tackle the future by investing in equipping Singaporeans with important skillsets, notably with the SkillsFuture initiative.

Here’s a roundup of Budget 2015 (does not include measures for businesses):

For more information, visit http://www.singaporebudget.gov.sg/

Score Great Deals At Flea Markets In Just 5 Steps

1. NARROW DOWN WHAT YOU WANT

Know what you want to buy before coming in to the flea markets. A whole area of second hand and budget-friendly items can be overwhelming so it is best to come prepared. The more focused you are, the easier it is to avoid impulse purchases.

2. MEASURE AND RE-MEASURE

To avoid buying furniture that does not fit your home, measure the room dimensions accurately by using a tape measure and a ruler. If you want to match an item with the room then take a picture or bring a fabric piece with you as you buy.

3. TIME IS ESSENTIAL

You will get the best selection in the first few hours of sale but vendors are reluctant to negotiate early one. So, if you want to save more then wait until the final day. But, expect your selection to be slimmer.

4. DO RESEARCH

Be sure to do your online research before shopping in the flea markets. This way you will be able to spot if the item is overpriced. Then if it is, use your bargain powers to sway the price.

5. GET CREATIVE

The items for sale may be multi-purposed. For example you are looking for a sideboard to put your dishes in, but a dresser/drawer has a better price. Grab the gorgeous dresser instead since you may use it as a sideboard.

Image Credits: US CPSC via Flickr

BONUS! Here are some of the recommended and unique flea markets you shall visit…

A. MAAD (Market of Artists and Designers)

MAAD houses pet-friendly and budget-friendly items for the whole family. Their innovative creators are from independent and are known for artsy fashion and artisan stationary pieces. Here you will find a wide array of crafts, plush toys, handmade jewelry, and paintings. The price range starts from S$10 to S$50. Visit museum.red-dot.sg/maad/ for more information.
B. ZOUK FLEA & EASY

Zouk, one of the famous clubs in Singapore, organizes a flea once every three months. From trendy pre-loved threads to hipster rags at bargain prices, Zouk Flea & Easy offers an eclectic flea experience.Blogshops are welcome to participate! Visit zoukclub.com for more.

C. CHINA SQUARE CENTRAL (CSC)

CSC has a Sunday flea market that offers DVDs, souvenirs, and electronics for less. Aside from that, comic book junkies can grab the later issues and action figures at CSC’s Level 2. Price range starts from S$5 to S$30.

7-Day Spending Cleanse Ideas You Must Try

It is amazing to start the Lunar New Year with a clean financial slate and increased savings. So, begin the year with a 2015 spending cleanse: short yet impactful exercise to help you clear your mind, focus on your goals, and improve your buying habits. There are no excuses because a short-term intervention (7 days) is a good place to start.

In just a week, your financial awareness can help you stop spending on unnecessary items and eventually help you break the bad habits. Try these 3 Spending Cleanse Ideas and come out more motivated, focused, and richer.

You must first figure out a budget plan that helps reach your financial goals before starting the cleanse. Seek guidance from family, friends, or YouNeedABudget.com.

1. ELIMINATE THE UNNECESSARY

Plan: Identify a category where you are overspending then, slash that problem area.

Purpose: To allocate more money for shopping, emergency fund, and savings.

If you a person who does not pack for lunch and only go for local restaurants, gourmet counters, and coffee shops everyday then your expenses can take about S$450 of your income. With this cleanse, you will have to go on cold turkey and avoid buying for outside food for 7 days. You will find yourself save more afterwards.

Just by reducing expenses in one category such as switching back to basic cell phone plan; you can save up for your dreams in just a few years. It is so simple! There is no sense if you go back to your unpleasant ways.

2. HAVE AN “AUTO-SAVE” SYSTEM

Plan: Program regular account transfers to help you reach your goals while having a busy schedule.

Purpose: To save money for retirement, emergency fund, and vacations before you spend it all.

Contemplate upon your budget and begin writing a list of the things you want to save for from your needs (e.g., emergency fund) to your wants (e.g., Christmas vacation in Paris). Divide your income to the needs first then, divide what is left to your wants. You need at least two bank accounts: one for your needs and one for your wants. The next step is to set up automatic transfers or direct deposits that will move your money into each account on payday.

3. NO MORE PLASTIC CARDS

Plan: Withdraw the week’s spending from the bank in cash. When it is gone…it is gone.

Purpose: Saying no to credit cards will cut down the impulse purchases.

Most people talk about how important their long-term financial goals are but their regular buying decisions do not support their goals. This cleanse will have you keep your credit and debit cards at home so you can easily notice when you are losing money for every purchase. Before the week begins you must spare 25% of your income and divide it to your spending categories and put all in different envelopes.

Image Credits: wikihow.com/Do-Envelope-Budgeting

This will be your only allowance for the whole 7 days and all for purchases shall only come from it. Research showed that the act of relying to cash for spending makes you savor the paying process, think more, and spend less. Trust me, it works.

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