Most of us think that it is very hard to make a saving. Same goes to me long times ago, but actually it can be easy enough if we know how to manage our expenses. Here I have a few tips and guide how to make a saving just with a minor adjustment from your daily expenses.
1. Stop smoking – I quit smoking about 6 month and I am healthy than I am before and the bonus for stay healthy, I pay myself RM8.20 a day (price of a 1 pack cigarettes). It will make a total saving of RM2,755.20 a year into my bank account.
2. Bring your lunchbox to work – Just bring your lunch box to work, you will save around RM50 a week. RM200 a month and you will be RM2400 richer that you are now each end of the year.
3. Wash your car by yourself – If you want to have a good exercise and save your money from it, wash your car during your weekend rest day. By doing this you will save RM36 a month. And it will make you healthier because of car washed activity. For better effect you can polish your car too.
4. Why pay more if you can get it free – why must you pay the expensive fee at the fitness gym if you can exercise at home. Wash you car, jogging or walking around your neighborhood and others activity that keep you healthy. Most of fitness gym cost you around RM180/month. So by make a cancellation you will save RM2,160 a year.
5. Pay you credit card on time can prevent you to be charge RM5 because of default payment. And remember to make a full settlement of your credit card monthly statement. If you can’t pay it full make sure you make a payment as much as you can instead of make a minimum payment each month and the credit card company will be happy to charge you 1.5% interest each month.
6. Use only Islamic credit card – For me, the Islamic credit card or charge card is more convenience to use because of there is no multiply/compounding interest charge for your outstanding balance, i.e. : you have used RM1000 credit limit of your CC and you will be charge only RM15 for your RM1000 outstanding bill. And if you make a minimum payment on that month, the Islamic credit card company will not charge you the high interest rate for the next month.
7. Having your tea break at home – I used to have my tea break at coffee house after working hour with my colleagues. But now I am having my tea break at home every day after finish my short exercise session in the evening. Before this I spend RM3 a day at coffee house to pay my beverage and food but now I am paying myself for a nice tea break at home. I got my tea break and as a bonus I got paid around RM90 a month because of doing that.
8. Shopping list – before you go for shopping, make sure you have list down all items that you need to buy and remove the item that you want to buy. I repeat NEED to buy. There is a different between need and want. You should know it. Just shopping and buy using only this list. By doing this you will be aware of what you are buying and where is your money goes to. For a best effect, please bring along you calculator when you go out for shopping. Please enter the price of item that you put in your shopping cart. You will be surprise to see a figures and amount of money that you have to pay for item that you buy. And you will start to select the alternative to the item. Maybe the cheaper brand.
9. Pay all your bills using the internet banking facilities, I am doing this and save around RM80 a month for a petrol and parking lot cost. Plus I have enough time to rest because internet is just around a corner.
10. Don’t be a fashion fans – I am not a fashion type of guy and that will make me out dated. For me I’m just one time out dated guy, compare to the other who a fashion follower. As I know, fashion has a season and when the new fashion is in the town, the old fashion have to go off. And all the fashion follower will be out dated, same like me. But the will follow the fashion and spent so much money to be up to date and will be out dated once again. Not for me, because I’m not up to date to fashion and I just be out dated once and I keep it like that forever. But one thing that I’m surely updated not by a season, but every month is my bank account and it’s make me happy much better than a fashion.
By reduced your expenses to only the needed, you will increase your saving. Start slowly and give yourself time and see the result. I am sure you will be happy and at that point you will have enough saving for your investment and retirement program.