How To Fool Yourself Into Saving Money

If money could talk, my wallet would be having a farewell party. I am not exaggerating! The weight of the Yuletide Season has been hard on my budget. You see, we are constantly bombarded with flashy sales and social gatherings.

The materialistic temptations becomes harder to resist due to the year-end bargains. Not to mention, the convenience of swiping a credit card makes spending easy!

Fortunately for you, there are other strategies that you can employ to save money. See how much you can potentially save with these four money tricks!

PUSH THE AUTOPILOT

How can you spend money that you do not see? This is no “vanishing coin act”! Instead, I am referring to automating your savings. Setting up an automatic transfer to your savings account can help you fulfill your financial goals. Whether you are looking forward to the night market or the BTS concert in Thailand, your expenses can be covered by your savings.

There is truth to the phrase: pay yourself first. Allotting a portion of your income to personal savings is as easy as allocating a budget for your phone bill. Upon getting into the habit of saving, you will be able to resist the temptation of spending. Ask your bank for guidance in automating your transactions.

EVERY CENT COUNTS

As I was walking to a dollar store, I saw an elderly man leaning towards the coin he just dropped. No matter how small a currency may seem, every cent counts. It is only logical to say that keeping your loose change in the course of the year can add up to a few hundreds of dollars! So, consider developing the habit of growing your cents.

Begin by getting an empty jar. You may turn it into an arts and crafts activity by having your child decorate the surface of your jar. Afterwards, empty the contents of your wallet every three days. Pour all the loose change into your decorated money jar. By December, you may exchange these coins for bills at your local bank. Growing your money jar will not only declutter your wallet, but also grow your wealth.

REMOVE THESE NUMBERS

Let us face it! Online shopping has been more prevalent than ever. The mere fact that you can get a blanket set from IKEA Singapore within three business days only shows how convenient it is to shop. The virtual market’s prompt gratification can breed addiction. Personally speaking, a friend of mine gets various packages sent on a weekly basis. It is crazy how each one comes from different parts of the world!

You open more rooms for financial vulnerability by setting up a customer account and saving your credit card information. So, consider deleting your online shopping accounts.

Adding an extra layer of difficulty while shopping gives you more time to weigh whether you really need to purchase an item or not. If you lack courage to delete the information on your own, you may ask the help of your trusted spouse. Who knows? This third party intervention may just be the solution to avoid impulse purchases.

A SINGLE QUESTION

As I was walking inside a fast-fashion store, I realized how random purchases can take a toll into my finances. Stocking up on adorable yet unnecessary items on Daiso can affect my budget for the next day. If only you can ask yourself a single question!

Do you believe that a single question can change your spending outlook? Well, it sure is possible! Who knew that a sequence of words can convince you to leave a shop without a cart full of non-essential items.

Simply ask yourself this: “Did I need it yesterday?” If you do not need it yesterday, you probably do not need to buy it today. By asking acknowledging whether an item is a need or want can help you stick to your budget.

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Saving money does not have to be a chore! May these easy tricks help you reach your savings faster than you would have thought.

Sources: 1 & 2 

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Small Financial Steps To Complete This 2019

As the new year chimes in, there will come a chance to set new resolutions or goals.

The other day, my sister and I were casually chatting about her 2019 resolutions. She reiterated how important skincare is. She seeks to apply sunblock and lotion on a daily basis. Her skincare resolutions were concrete and doable. So, I asked her why she kept her goals simple. She looked at me and said…”If I cannot follow through these simple goals, how can I complete the bigger ones? I have to start with smaller chunks.” She made a valid point.

The best way to achieve your desired outcomes is to start small. This statement applies to your financial life. On that note, here are some “small” financial steps that you may consider this 2019.

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#1: READ AT LEAST THREE FINANCIAL BOOKS

Without a shadow of doubt, knowledge is power. Research and further study on the different techniques to manage and grow your wealth will help you develop essential financial skills.

Aside from visiting educational websites such as Money Digest, you may find quality information in the nearest public library. Books are gateways to a new world. Who knows? The financial book you just pick up at the bookstore may just lead to the completion of your financial goal.

#2: ESTABLISH A WELL-STOCKED EMERGENCY FUND

Time and time again, I shared how important it is to build a sufficient emergency fund. Having an emergency fund or a financial reserve is usually perceived as a short-term financial goal. However, its personal benefits last long!

For starters, it diminishes your money worries as you will have a cushion to support your tight budget. Secondly, it can cover sudden events such as job loss or medical expense. Lastly, it exercises your ability to save money.

#3: CUT DOWN YOUR UTILITY COSTS

Utilities are essential to one’s daily life. Just because you have to spend money on utilities does not mean that you have to be lax on it. Continue to look for ways to save on electricity and phone bills. Also, you must apply money-saving techniques to cut down a basic need – water!

For instance, you may eliminate your cable bundle by subscribing to mobile streaming services (e.g., Netflix or Toggle Singapore) instead. Or, you may simply turn off the switches when not in use.

Be frugal! You will save hundreds of dollars a year by cutting costs on these mandatory expenses.

#4: HAVE SUFFICIENT INSURANCE

2018 was the year that I actively to built my insurance umbrella. I wish to continue to drive to this path in 2019. When it comes to insurance, many people either pay too much for their coverage or pay too little to cover what they need. Striking a balance between these two is a good financial goal.

A significant aspect of this goal is to find a credible and competent insurance agent, who understands your situation best.

#5: EXPAND YOUR REPERTOIRE

I was fortunate enough to have ridden a cab with a man full of wisdom. The driver was a retired Engineer who worked in Singapore and United States. In the span of his career, he observed how most of his co-workers preferred to stay in a box. They kept their first jobs due to level of comfort and security it entails.

Many of us choose to stay in our comfort zones. However, growth comes from shaking things up! If you choose to stay the same, nothing will happen. You need to embrace change.

Complacency breeds mediocrity. Open new doors in your life by learning a new skill. Let’s take my uncle as an example. To negotiate a higher salary, he furthered his skills by attending seminars and trainings. You may also further your educational background. Start small by learning a new skill from an online course.

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Fully improving yourself is often time consuming. A lot of hard work and money goes into it. But, improvements will help you take on bigger challenges and responsibilities in the future!

Sources: 1 & 2

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Surefire Ways To Save Money As A Student In 2019

As a student, keeping a budget may sound intimidating or boring. However, you must understand that having a budget is essential to enjoying your academic life. Saving extra cash while sticking to your budget will help you gain control over your finances, especially in Poly or Uni.

May the following tips aid in keeping your wallet afloat!

TAKE ADVANTAGE OF YOUR STUDENT ID

Not many of us take pride in our student identification cards (ID). Do not get me started with the image attached to it! Well, your perception may change upon knowing how powerful your ID is. The potency of your ID may pour outside the halls of the school. Many retailers offer discounts or freebies upon the presentation of the student ID. For instance, I used to take advantage of the ticket discount in the nearby cinema. While, my sister’s Alumni ID doubles as a Nets FlashPay card.

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Check with your student services department to learn more about the discounts that are readily available to you.

EAT AT HUMBLE PLACES

With a youthful spirit, dining among friends is a common pastime. Consider eating at kopitiams rather than spending your allowance on restaurants. Gain a sense of nostalgia by searching for the nearest kopitiam.

Kopitiam in shopping centers allow you to go cashless. Kopitiam cards are available for top up in denominations of S$2, S$5, S$10, S$20, S$50 and S$100. Use this card to eliminate 10% off your transactions!

LOOK FOR A PART-TIME JOB

Widening your streams of income beyond your monthly allowance allows you to save more. If your academic load and schedule permits, you may consider acquiring a part-time position. Begin by asking for the vacancies in your university.

Some universities provide students with convenient jobs such as in libraries or computer labs. The administrators at such places understand the importance of attending classes and making extra income. Otherwise, you may consider various home tutoring options.

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Fulfill your academic and financial responsibilities this coming year by finding efficient ways to stick to your budget, to save extra cash, and to widen your streams of income. Good luck! 🙂

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Celebrate These “Small” Financial Achievements

Do not underestimate the strength of your “small” wins. These are pivotal to tracking incremental achievements and working towards larger goals. You see, most financial goals (e.g., purchasing a flat or saving for retirement) can take a long time to achieve. It can be too intimidating!

Breaking your goals into finer pieces can help you visualize your financial path. What’s more? It can motivate you to work harder.

#1: MOVING INTO YOUR FIRST FLAT

Living alone can be challenging in the first few months. However, nothing replaces the feeling of independence that comes from cultivating your own place. You are free to march to the beat of your own drum – within the bounds of the building management or the landlord. Sometimes, it can get lonely to live by yourself. Your bravery to take the plunge is an accomplishment on its own.

#2: PAYING OFF YOUR DEBTS EVERY MONTH

Along with growing your wealth, you must diminish your mountain of debts. Start spending and saving wisely to cover your monthly balance per month. Are you capable of paying it fully? If so, then consider doing it. Nonetheless, contributing a significant amount to your debts will enable you to maximize your retirement contributions.

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Think about that!

#3: GETTING A PAY RAISE

Words cannot encapsulate the wonderful feeling of being recognized and paid for one’s hard work. We are quick to press the “Like” or “Heart” button on Facebook whenever someone announces his or her promotion. It is a celebration indeed! But, remember that you do not have to wait for your coveted moment to begin celebrating. Every pay raise counts! Pour yourself a well-deserved drink and bask in the glory of your accomplishment for a night.

#4: INVESTING IN YOURSELF

Whether you are advancing your degree or continuing your certification in the field, you will more likely to increase your earning potential by receiving further education and training. Not to mention, you will widen your network and knowledge in the process.

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Increasing your professional value by investing in yourself can ignite your ability to achieve long-term independence. Hence, I encourage you to set some money and time this cause.

Sources: 1, 2, & 3

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4 Entertaining Money Activities For Young Adults

Whether you admit it or not, managing money sounds like a hefty task. Pouring elements of entertainment can may get your attention. On that note, here are some money-related games that you must try.

#1: MONOPOLY

This list won’t be complete without Monopoly! I remember playing this board game as a child. At first, it was simply a way to kill boredom. Little did I know that I can develop purchasing strategies and other financial skills while playing. Put a spin to this classic game by altering some rules. For instance, you may maintain a record of each payment or deposit in the register. Then, each player will start with a mortgaged property. You must pay off the mortgages with your income. This will enable the players to learn more about the dynamics of loans.

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#2: MARKET, MARKET

This exciting game shall simulate what is like to shop on a supermarket at varying levels of budget. Each player will be given a scenario, which defines the family size and the amount of money available for grocery shopping. Then, the players shall visit the nearby grocery to write down the items that they intend to “buy”. The player with the most items within a given budget wins!

#3: LOAN MASTER

If you are interested in brushing your borrowing skills then, this loan application game called Loan Master is suitable for you. The game is controlled by a facilitator. The facilitator starts with dividing the participants into two groups – the consumers and the lenders. The former will be assigned to specific incomes and expenses. They must plan for their budgets and include reasons for borrowing money such as medical or travel fees. The latter, on the other hand, includes different types of lenders such as bankers and loan sharks.

“To loan or not to loan?” is the question that the consumers must answer throughout the game. They must learn to decide whether they shall commit to a loan application or not.

#4: SIMPLE SAVER

Young adults must realize that growing one’s savings is faster when money is put in an interest earning account. Highlight the differences between saving with and without compound interest by playing the Simple Saver game. Begin by grabbing a pen, paper, calculator, and a partner. Each participant will calculate his weekly savings for a year.

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Participant A is the Simple Saver who earns no interest. While, Participant B is the Super Saver who earns a 5% interest compounded daily. See the difference!

Sources: 1 & 2

 

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