Ways to Save (3) – Reduce Spending

A lot of times, people doesn't stop in their track and ponder where they could save but more often than not, people complaints about not having enough to spend or save. I shall share some pointers here.

Your Home Spending
1. Spend Lesser on Home Improvement
We flip the newspaper and everyday throughout the year, we see advertisements with sales after sales. Most of us here in Singapore would love to have a huge (43”) LCD TV in our hall or room, new audio system, new computer, new furniture, etc.

Do we really need a new and better (LCD) TV when we already have a 29” conventional TV? Is the computer giving us problem or are we finding excuses to get a faster PC? Do we need to change to new furniture when the current set is only 3 years old?

Cut back on home improvement spending and you see several thousands of dollars in your bank account.

2. Cut Back on Lightings and Electricity Bills
With raising oil prices, electricity cost would have gone up as well. Two years ago, an average household may be incurring $100 utility bills a month but will be paying $130-140 a month now.

Sometimes we have too much lights switched on, and not turned off when we are done. Singapore is among the most well led country in the world (that we can hardly see stars in the sky, partly due to our cloudy sky, but also attributed to the brightly lid roads). Do we need so much lights on if we are not doing any reading?

Use the fan if it is not warm and turn on the air-conditional just before you sleep instead of turning on immediately when you enter the bedroom. Raise the air-conditional’s temperature to 25 Degree Celsius and it will still be comfortable.

3. Cut Back on Grocery Shopping or Buy House Brands
Reduce spending on tibits and snacks. It not only keeps you in shape, but also your wallet too. Buy house brands instead of imported goods (import duties), get cheaper brands, etc.

Avoid over-stocking as there is a tendency to try consuming everything faster, or some will end up in the thrash. We should be buying what we need and not always what we want. This measure could save us approximately $50 per household.

I recall there was a Governor in US living on a mere allowance for a week or month (in 2006). He had to forgo chips, his favourate coffee, no premium food stuff, no beer, etc, and found it miserable living on that little money. After the period was up, he realized that there are indeed many ways to cut down on grocery shopping and food. Kudos to him, he had to reduce his allowance to less than 20% his usual spending and still made it.

Lifestyle Spending
1. Get rid of Extra Cell Phones or Change Package
Interestingly, we are the most (or 2nd most) connected people in the world. Our population as at July 2007 stands at 4.55 million but we have 4.789 million (2006) mobile lines. (source : CIA Factbook)

Some are carrying more than 1 line to keep their bills down. In actual fact, it is cheaper to use only one line than multiple lines. Look at your 3 months bills (all phone lines) and average the total outgoing minutes per month. This will allow you to find a suitable package suiting your needs.

2. Cut down on Premium Coffee
Why spend $5 on a cup of coffee (not to mention any pastry) in a café when you can get local coffee at the coffee shop at $0.80 a cup? Instead of two trips a week to the café, reduce it to once a week, or fortnightly, this will save us a few dollars.

3. Cigarettes
Everyone knows that smoking has no benefits yet many smokes habitually. Instead of one large pack ($11.40 a pack?) a day, reduce to one pack in 3 days or even further. This will save more than $220 a month.

4. Alcohol and Clubbing/Pubbing
How often do you go partying? At least $50 goes down the drain each time one goes out partying. Why not use time wisely, find a income source, do some reading and self-improvement, etc.

Your drinking buddies are usually not the ones who stands by you when you are in trouble (except rowdy behaviours when partying). When you are down and out, your so-called buddies will shun you faster than lightning.

5. Meals
Cut down on fast-food and restaurant dining. Each fast-food meal will set you back by $6 while a meal at the local food centre will cost you $3. besides being more costly at fast-food, it has been proven that fast-food are usually less healthy (often associated to obesity).

6. Credit Cards
The convenience of Credit Cards is also a convenient way for the bank to make more money out of you. For individuals with little spending discipline, get rid of your credit card before it gets rid of you. Do not roll over any amount, pay what you spent at the end of the month. Countless of people goes bankrupt each month from credit card debt.

7. Unnecessary Memberships
Do you have any under-utilized memberships? Club membership, night spot membership, gym, car grooming, etc. All these membership cost you money with almost no privilege but additional income for such organization. Membership is a thing of the past.

8. Personal Grooming Treatments
It is important to be well-groomed. How often do you pamper yourself with Manicures, Spas, Facial, Expensive Hair Styling, etc. How much does it cost you each time you go for such packages? There’s something called, Do-it-Yourself, the DIY way.

9. Car Washes
Instead of spending $5 per wash, twice a week, why not do your own washing. It is good exercise and saves you $40 a month. We need to exercise at least 3 times a week, at an interval of 10mins each time. Car wash will take you 30 minutes each time doesn’t it?

10. Spending on Lottery
Let’s face it, how often do you strike it lucky? In contrast, how much do you spend on lottery a week? If you spend $200 a month on lottery, you could save $2,400 a year. Stop buying habitually and it is as good as a sure win of $2,400 a year.

Singaporeans are one of the most ‘committed’ gamblers in the world. We have 22 out of 30 days in November 2007 with some form of lottery. The lottery days are, TOTO on Mondays and Thursdays, 4D lottery on Wednesdays, Saturdays and Sundays, Big Sweep once a month (not to mention, horse race on Fridays, Saturdays and Sundays). How about soccer bettings?

Did I show you how you could have save more than $200 a month? Why not invest this money? You will be a lot richer, or at least not poorer.