Money Talk

Everyday Money Saving Tips

I am an impulsive buyer. I tend to buy more groceries than necessary because of a forward-thinking that I might need it in the near future.  With this kind of shopping attitude, most of the time I go way over the intended budget. But it was okay, I justify myself and make use of my credit card which I can’t pay in full. I was like this every grocery week.  Eventually, my credit card got cut off  but that’s okay, at least my debt will stop piling up. I was dead wrong. My debt is still piling up because of the added interest  every month that I can’t pay it in full. This is the end of all the shopping trips and the time to start spending wisely. Experience is indeed a hard teacher. 

Here are some money-saving tips and tricks that I have learned.

1. Make a grocery list

To make a grocery list, categorize your items ( toiletries, vegetables, canned goods, dairy products,  etc.) put them in order according to your route inside the grocery store. If, for example, you pass the canned goods aisle first, then put that category on top, and so on. This will help you to focus on your list and not stray around making you vulnerable to your buying impulses. Do not put yourself in a tempting situation.

2. Take advantage of shopping deals, rewards, and promos

Always be in a lookout for “buy one, take one”, discounted, bundled items and cheap deals. BUT ONLY for the items included on your list. If you buy things which is not included on your list, believe me,  these deals will betray your pocket. You will end up buying more and spending more.

Use your credit card or store card reward points when shopping. If you have a credit card, you may opt to “push points” into your affiliate shopping cards. “Push points” means that you will transfer or convert your current credit card points into your shopping card.

When can you use your reward cards? As for me, I only use it for Christmas shopping. All year round, I gather shopping points thru weekly groceries and once it reached a satisfactory amount, I spend it on Christmas season sale. That’s like hitting two birds with one stone.  Discounted items  + reward points = buying more , spending less.

3. Stop being a one-day millionaire

Do not splurge all your bonus on a shopping spree.  Keep in mind that life is precarious. We do not know when we will need an extra cash.

4. Budget or save using the “envelope” strategy

                Label the envelopes according to your expenses (example: for electric bills, for telephone bills,  for mortgage, for water bill, for grocery  , etc.). For every money that you save every day, put it inside the envelope and lock it in your safe.  Also, after you receive your salary, you can set aside your budget for each expenses on the envelope. Every time you go for a grocery shopping, all you need to bring is your “grocery” envelope.

5.     Learn to compound your money

                

Instead of letting your emergency fund sit idly on a regular deposit account, put it in a special deposit account which has higher interest earnings compared to a regular deposit account. It you think you are not qualified because of its high minimum requirement, you may try other money instruments such as UITF (Unit of Investment Trust Fund) and mutual fund.

 

Learn, Save and Invest

Most of us daydream of getting rich, having enough money to pay for the wants. We all want to retire young with enough money to maintain a lifestyle we choose. The one word that puts a halt to all our thinking is --How?. 

I, for one is financially illiterate at first. But once you are really determined to finally act on it, you'll realize how simple things are if you only bother to do something about it when you were younger. 

Here are some questions we often ask.

When to start?

TODAY! yes, today. There is no better time to start than today. If you procrastinate, you might as well forget about it. Delaying what you can do today is not going to get you anywhere.

How?

That's a question that is often times followed by an excuse, "I don't know anyone from a bank and I am financially inadequate". That's crap. How can someone who consumes everyday be financially inadequate? It's just a matter of prioritizing. If you think you lack knowledge then buy a business or investment book over Amazon or ebay, or read financial blogs online. Know that knowledge is power. Don't be afraid to ask. Feed your mind. If you want to get a compilation of quality business books, you can get it from 100mustreads.com

Who to go to?

For first-timers, I recommend getting a UITF (Unit of Investment Trust Fund) from which you can choose from fixed income, balanced fund or equity fund, depending on your risk appetite. This is cheaper and you don't need to always check on it. Your money will earn higher interest compared to regular deposit. Visit your trusted bank.

You can also opt getting a mutual fund. Basically, its the same with UITF. But instead of a bank managing your money, they are handled by legitimate investment firms like, First Metro Investment, Sun Life Financial just to name a few.

If you don't have enough cash to fund these instruments, most banks and investment firms offer an EIP (Easy Investment Program). This program lets you invest regularly in small amounts (depending on how much you can set aside) in fixed intervals (monthly, quarterly or semi-annually).

Now, if you're aggressive and you want high returns. Then go for the stock market. Personally, I recommend Citiseconline if you want to manage your stocks online. Navigate their site and you will find a lot of useful information on investing.