Savings Archives | Page 12 of 17

Cosmic Ways To Save Money Like A Jedi

Sometimes, useful financial advice can come from the unlikeliest places. Take Star Wars, for example. It is not only an epic Science fiction film series but also a good place for frugal inspiration.

Learn to save money like a Jedi with these five universal ways:

1. BUILD THINGS FROM SCRATCH

Luke Skywalker, one of the greatest Jedi in the galaxy, spend no expense by making his own lightsaber (laser sword). Like Luke, do not be afraid to Do-It-Yourself!

Start from simple crafts such as making your own shower cleaner or personalized key-chain. After which, turn the difficulty up a notch by making all the crafts for your dream wedding. This can help you save loads of cash.

2. SIZE MATTERS NOT

In “Star Wars:The Empire Strikes Back” movie, Luke was tasked to raise his X-wing (aircraft) from the swap and he complains that it is too big. This frustrates Yoda, a wise Jedi Master. Yoda then explains that size does not matter and excuses are not welcome.

In life, obstacles to saving money can seem unbearable at the moment but, it shall not stop you from pushing through. Furthermore, you must understand that the size of your salary does not matter. What matters most is how you spend and manage it.

3. SHARE AND BE BLESSED

A Jedi shares his knowledge and skills to others with no charge. Apply the hippie-like concept of sharing to your life. Share resources to your fellow classmates and you will not have to buy expensive reference books ever again. Also, you can carpool with your friends to save on gas.

4. KEEP YOUR WARDROBE SIMPLE

Much like Jedi Knights who mostly wear “brown sack-cloths with hoods” or Facebook’s founder Mark Zuckerberg who mostly wears grey shirts, you can save more money by keeping your wardrobe simple. You do not have to wear the same shirt or same outfit everyday! Just avoid hefty designer clothing by purchasing clothes from thrift shops or year-round sales.

5. DO OR DO NOT. THERE IS NO TRY.

When Luke was making excuses about his inability to levitate objects with his mind, Yoda told him these famous words: “Try not. Do or do not. There is no try.”

When you continue to make excuses to saving money or altering your spending habits, you can end up retiring broke. So, start accepting the responsibility and create a monthly budget that is suited for you. In due time, you will see that eliminating your excuses produces meaningful results.

Sources: 1, 2 , & 3

Income versus Expenses: How Are We Faring?

Singapore is not cheap, which makes you wonder, how do we thrive? To help us understand better, let’s talk about our cost of living.

Housing

In general, the property prices in Singapore are going down, thanks to the efforts of the government, including reducing the loan-to-value ratio and capping home loans up to 35 years. Moreover, you have several property options, although more than 75% of us live in HDB flats, of which the cheapest can be a 2-room home with a possible net selling price (after grants) of $52,000.

But this would need a median income of $1,500 and a monthly instalment to income ratio of 11%. So far, as of 2014, the median income calculated during the mid-year was $3,770. If you can’t afford to buy the property yet or you have no intention of doing so at least within a few years, you can take this time to start saving, managing your debt for a better total debt servicing ratio (TDSR), and comparing mortgage loans.

Healthcare

Singapore promotes a universal healthcare program. Under this are Medisave, Medishield, and Elder Shield, to name a few. A part of our CPF contributions is intended for healthcare by the time we’re old (and, yes, our population is getting way older than before). Other countries have commended our healthcare system for having some of the best hospitals and well-trained staff with training and expertise comparable to that of European and North American countries.

But our healthcare isn’t immune to inflation, and premiums for coverage such as Medishield are expected to go up. Moreover, the government provides only subsidies, which means you still have to pay for the remaining healthcare costs. If there’s some good news, it’s that many companies do provide healthcare and even life insurance at no extra cost on your end.

Education

Singapore stresses the huge importance of education, so much so that it allocates at least 20% of its annual budget to it. It is also compulsory for children between 6 and 15 years old, but it’s not unusual to see children as young as 4 to go to school, which means education expenses can also start early, and a nursery class may cost $900 per year. University is expected to go up by as much as $30,600, but subsidies can greatly help by decreasing tuition fees by as much as 26%.

Food

A huge chunk of a family’s budget goes to food, and the expenditure keeps on increasing every year. In 2013, the average food expenditure was $1,188, an increase of $239 from 2008. There are two possible explanations for this: inflation and our penchant to eat out. We are the highest spenders in the Asia-Pacific region in terms of dining out with a monthly expense of around $324.

Can We Afford It?

The high cost of living, however, is just a partial way of evaluating our capacity to thrive in the country. The much bigger question is if we can afford our necessities. Thankfully, the answer still remains yes.

More households are earning $20,000 and above a month (including CPF contributions), and even if our total household expenditures have gone up through the years, they’re still lower than our average monthly wages.

This doesn’t mean, though, you won’t go bankrupt or continue to live from paycheque to paycheque. Your own spending habits and financial decisions can have a significant impact on your expenses and income. As an example, while you have many choices for credit cards, going for the ones that help you earn rewards with your credit card is more sensible as you can take every dollar you spent further.

To conclude, whether you’re living in Singapore or anywhere else in the world, being financially smart can shield you from all the money woes.

(This article is brought to you by SingSaver.com.sg)

CIMB Bank Launches Online Savings Account that Earns 1.0% p.a. Interest Effortlessly

Designed with the digitally-savvy, time-starved working professional in mind, CIMB Bank Singapore has today announced the launch of CIMB FastSaver – an online savings account that not only frees customers from the hassle of being physically present at the branch for account application, it also surpasses many other savings accounts in the market with the 1.0% p.a. interest rate it is offering.

Payable from the first dollar, the high interest rate of 1.0% p.a. applies to the first S$50,000 without imposing on the customer a myriad of other mandatory conditions including chalking up a minimum monthly spending on one’s credit card, performing a certain number of banking transactions, etc. Beyond the first S$50,000, a 0.6% p.a. interest applies on the remaining deposit balance. As long as S$1,000 is maintained in the CIMB FastSaver account on any given day, interest will be paid on the daily balance and there will be neither monthly fee nor fall-below fee regardless of the total deposit amount.

Created for maximum simplicity and ease, the new CIMB FastSaver also allows customers to do away with branch banking completely by conveniently applying for the account online via www.cimbbank.com.sg/fastsaver. Upon submission of the application, the customer will receive their account number instantly – onscreen and via email. Thereafter, they can easily use FAST (Fast and Secure Transfers) via Internet banking to transfer the minimum deposit of S$1,000 instantaneously from their account with another bank into CIMB FastSaver to start earning interest. Doing away with the need for queueing at the bank to carry out transactions, CIMB FastSaver provides customers with easy access to view their account and perform transactions anytime and anywhere via CIMB Clicks Internet Banking or CIMB Clicks on Mobile.

Coreen Kwan, Head of Retail Banking at CIMB Bank Singapore said, “As one of the world’s highest penetrated markets for Internet and mobile usage, it is no surprise that online banking is fast becoming a norm in Singapore. The introduction of CIMB FastSaver thereforeenables us to bring greater ease and convenience to our customers who prefer to bank from the comfort of their own home or on the go. Furthermore, we are able to pass on the savings achieved from the reduced operational costs at the branch by rewarding customers with an attractive 1.0% p.a. interest – a rate that’s practically unheard of in Singapore today for a basic savings account, without multiple conditions to fulfil.”

For new customers who sign up for a CIMB FastSaver account by 31 October 2015, CIMB Bank will further reward them with cash credit for their initial deposit amounts: S$10 for S$1,000, S$50 for S$10,000 and S$100 for S$25,000. To qualify for this promotion, customers need to transfer the required minimum initial deposit amount into CIMB FastSaver within seven calendar days after account opening. The qualifying deposit amount must also be maintained for a minimum period of six months.

For more information on CIMB FastSaver, customers can log on to www.cimbbank.com.sg/fastsaver or call CIMB At-Your-Service at +65 6333 7777.

Visit http://cimbbank.com.sg/pdf/fastsaver.pdf for full terms and conditions of the promotion.

Practice One Virtue That Can Definitely Increase Your Savings

As the Japanese Proverb once scribed: “Money grows on the tree of patience.”

Yes! One virtue, practiced religiously, that can definitely increase your savings and even increase the odds of success is none other than: Patience. Why is that so?

1. PATIENCE BOOSTS YOUR DISCIPLINE

Applying patience to overcome instant gratification is important in financial success. If you are an impulsive over-spender, establish a waiting day rule of at least 30 days on any purchases. The new items you have been eyeing on will go on the waiting list. This will not only help you to develop patience but also to help you filter out which ones you need and which ones you don’t.

2. PATIENCE HELPS YOU RESIST THE TEMPTATION

If the temptation of spending is overwhelming, try discussing financial matters to your bank. You may ask them to make automated payments or to put restrictions into your savings account and credit card. Once the convenience of spending is out of sight, it will be out of mind.

3. PATIENCE ALLOWS YOU TO LOOK FOR OTHER OPTIONS

Sadly, in a world that hates delayed gratification, impatience costs people cold hard cash. If you are willing to wait instead of purchasing immediately, you are able to compare prices within other shops and to find cheaper options while you are it. Patience gives you the opportunity to wait for the greatest sales, huge markdowns, and bargain deals that will help you save a lot!

Image Credits: pixabay.com (License: CC0 Public Domain)

4. PATIENCE ALLOWS YOUR MONEY TO GROW

The longer you keep your money, the more you will make of it. Elevation in your wealth each year is possible because of compounding. Compounding is the addition of interest to the principal of a deposit. Read more about the compounding power, here.

5. PATIENCE SHARPENS YOUR CONSCIOUS SPENDING

Patience sharpens and shapes your conscious spending by letting you realize the worth of each item. Ask yourself in the present time: “At my age, what matters to me the most?“

If you are willing to wait for a purchase then, you consider that item as important. And if it is that important…surely…it is worth the wait.

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

Easy Ways You Can Save Over S$3,000 A Year

Life is unexpected; you will never know when an emergency or financial crisis will hit. With that constant reminder, who does not want to save over S$3,000 a year? That said, here are the Easy Ways You Can Save Over S$3,000 A Year:

1. WATER SELECTION

If you are purchasing bottled water from the stores that are priced at S$1/1.5L bottle then, a family of four goes through at least 20 bottles a week. This is why it is best to drink from the safe tap. Filling up your reusable water bottle or jug only takes seconds and only costs S$0! With the tap water, you save about S$960 annually!

2. POWER STRIPS OFF

Power strips or otherwise known as power bar, trailer lead, or extension block, can spike your electric costs even if you turn it off.

Image Credits: US-power-strip-rotated via Wikimedia Commons (Licensed under CC BY-SA 3.0)

Accounting for about 5-10% of your home’s energy bill, the best way to save from this is to unplug it completely. Unplugging your power strips can save you approximately S$70-330 per annum.

3. LIMITING AIR CONDITIONER USAGE

At 900 watts or more, your air conditioner (AC) is one of the major appliances that contribute to a huge chunk of your energy bill. So, if it is running for 8 hours a night for 365 days then, your medium-sized AC unit will cost you about S$600 annually. A good way to save about 50% is to time your AC to shut down after 4 hours. Then, save about S$25 on AC – a month!

Furthermore, here are the 5 Cost Saving and Energy Saving Air conditioners For your HDB:

Image Credits: home.intraix.com/5-aircons-to-buy

4. ELIMINATE THE DRYER

Instead of constantly putting your clothes in the dryer, hang it in properly in a clothesline. The dryer, like the AC, is contributing to a huge chunk of your energy bill. It feeds on energy and a lot of it. So, by letting your dryer rest, you can save about S$103 a year. That is if you regularly have 6 loads per week and take 20 minutes per load.

5. HAVE HOME COOKED MEALS FOR DINNER

Aside from packing lunch at work, cooking at home every dinner will cut your costs effectively and immensely. The cost of the meat, vegetables, and spices are lesser at the grocery than at the restaurants outside. This is why you must limit your restaurant trips or take-out meals to at least once a week.

For instance, you are going out for dinner at an average restaurant for 3 times a week then, it can cost you S$240 a month or S$2,880 a year. So if you limit your outside dinner trips to once every week then you can save up to S$1,920 a year!

SUMMARY (M-1 month & Y-1 year):

A. Water: S$80/M , S$960/Y

B. Power Strips: S$5.8-27.5/M, S$70-330/Y

C. Air Conditioner: S$25/M, S$300/Y

D. Dryer: S$8.6/M, S$103/Y

E. Dinner: S$160/M, S$1,920/Y

Image Credits: pixabay.com (CC0 Public Domain)

Thus, the total can go up to S$3,613 worth of savings in just 12 months!

Sources: 1,2,3 & 4

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