If you’re struggling to figure out a way to save money effectively, or you find yourself always waiting for your payday to come in, here’s a great challenge you can set yourself and see how much you can save!
This challenge is very simple; during the first week, try to save $1, $2 during the second week and so on and so forth, all the way up to week 52 where, you guessed it, try to save $52!
You can create a savings chart or tracker so that you can ensure that you’re saving every week, and I would recommend putting these savings into a different bank account, so that you’re not tempted to spend it!
This challenge instils great saving habits, starting off small and working up towards a big goal, and by the end of the challenge you’ll have saved a whopping $1378! You can put this money towards a big-ticket item, or save it for when you graduate or any other life stage. And if that was too easy, try the 52 Week Saving Challenge, followed by doing it in reverse, doubling your money!
I must admit that when you live in Singapore, and you see all the luxury surrounding you, it’s very difficult to not get sucked into the spending lifestyle; it’s difficult to not go to nice brunch places, restaurants or expensive bars. It’s difficult to not feel the want to buy nice brands. It’s difficult to not want to live it up in Sentosa. I find all this stuff hard to avoid sometimes when I see everyone around me enjoying Singapore as much as possible; especially seen as travel is not an option. So I thought, is there a way to live ‘that life’…without paying for it? Turns out, there’s a few little hacks you can do to live the high-life on a budget!
Opt for Lunch Instead of Dinner
This one is great if you need to take clients out or you have a group of friends that like dining in higher end restaurants. Many restaurants do a set meal for lunch, at a fraction of the cost of dinner prices, and you still get to experience the beautiful ambience and surroundings. Spago, Café Melba, FOC, Artemis and even KOMA all have cheaper set lunch menus.
Save On Luxury Experiences
Staying in the house 24/7 is not good for our mental health, especially when working from home. We need to go out and socialise, but we also can’t spend every night or weekend doing fancy things- our bank account will not thank us. We need to find a happy balance, and one way to do that is by saving on experiences. You can use websites like Fave to book discounted tours, yacht parties, theatre events and more. Buy packages for massages if you plan on going frequently, as it works out cheaper. Not only that, if you like beach clubs, now many of them don’t have a minimum spend, so you can spend your weekend relaxing at a beach club!
Organise Events at Home
I think this is a really great tip whilst we’re in heightened restrictions. I love entertaining at home and spending time at friends’ houses. So why not make the night really special by creating an event, be it a quiz, a game, or even hosting a wine and cheese night? All of these items can be bought way cheaper from a shop, than in a restaurant, bar or pub (I recommend buy from Wine Connection stores or Wines4U on Lazada).
Be Smart with Your Money
Instead of over-spending and maxing out your budget, cut back on areas you can afford to so you have room for more! Make sure that your rental isn’t over 30% of your monthly salary, do a big shop of your groceries instead of a weekly shop (studies have shown that doing bigger bulk grocery shops save you more money than a weekly one). I’ve done plenty of articles of how to manage your budget, eating healthy on a budget and even how to reshuffle you finances, so check them out. But basically, the less you spend on fixed expenses, the more budget you have to work with!
Do Smart Investing
The power of dividends! Did you know that some investments you buy, pay you money quarterly, depending on how well the shares are doing? This is a great way of hitting your short-term money goals with little to no effort. I suggest investments with dividends pay-outs to clients who maybe want a bit extra when they go on holiday (booking flights are crazy expensive right now), to help pay off some unwanted bills or for them to save up for moving. What’s great about dividends is that you don’t have to cash them out if you don’t want- you can leave them in your investment to accumulate money, and cash out when needed.
At the end of the day, the only real way we can live the high-life is to really evaluate our finances and plan correctly, by budgeting, saving and investing. But, using some of these money-saving tips and ideas can really help you save that little bit extra, and still enjoy your free time! What do you do to save?
Money saved is money earned…right? Not necessarily in the long run. Rising inflation rates can mean that you’re actually losing money by leaving it in your bank account.
If we take my DBS account as an example; the interest rate is a lousy 0.05%. The average rate of inflation in Singapore is projected to increase to 2%. In theory, if I leave $100,000 in my bank account for 5 years, I will have $100,250 after interest. However, this amount of money will have lost buying power. In theory, my money in 5 years will actually be worth $90,622; I will have lost $9,378 just by leaving my money alone! (It has a negative rate of -1.95% when inflation is taken into account.)
While inflation shows an upward trend in the economy, it can be a massive hindrance to our bank accounts! So what do we do? There are a couple of ways to take action today! The first one is to find a savings account that offers you a higher interest rate. Some offer 2%-3%.
The second and most effective way is to put your money in instruments that will get you a much higher rate of return. This is why I feel that investing is key; even if you find something that yields a conservative 4%, your $100,000 in 5 years would be $121,665.
I will be writing about in a future article the benefits of different investment instruments.
Hindsight is bitter sweet; it’s very easy to sit back and relax and leave your money alone…but you will regret it in the long run.