How to Save Money

We save money for a variety of reasons. Some save it for the rainy days or some save to use it for investments and hope to reap better returns from their savings. Saving money requires discipline and it takes time to develop. No matter what, it’s best to start early. Don’t procrastinate. The amount saves may look small initially, but over a period of time, you’ll be surprised how it has increased later on.

I would like to share five of my saving money tips.

Tip 1: Budget Plan

Plan your income and expenses to know the movements of your money. From this plan, you can know which expenses to cut to achieve your saving plan. If you have a family, it’s best to plan this budget together as a family activity as you need their co-operation to avoid complains.

Tip 2: Reduce Unnecessary Spending

Most people are tempted to buy things on impulse and later the items bought are hidden somewhere in the house. Review regularly what you spent and look for ways to reduce spending. E.g. making unimportant phone calls during off-peak timings are cheaper.

Tip 3: Buying in Bulk

Look for offers in newspapers for your commonly used non-perishable items. E.g. Toothpaste, toilet rolls, dish washing liquid. These tend to have bundled offers to give you real savings in your grocery bills.

Tip 4: Wait for Sale

There will always be a sale at major department stores or warehouse sale for branded items. Sale must be from reputable companies known for their credibility of conducting sale to reduce old stocks to allow space for new ones to be displayed. Beware! Some companies may fool unwary customers by conducting sale all year round as part of their marketing strategy. Normally, I shopped for my regular items and know the estimated market price.

Tip 5: Monitor your Utilities Bills

Read and file your utilities bills. Compare it to the national average usage. If yours is way above, do an audit of your usage. E.g. If there is a sudden surge in water usage, there could be some leakage somewhere. Check it to stop the problem as soon as possible. Always replace old electrical products with new energy saving ones. I saved some money on electrical bills when I replaced my old air-con to inverter air-con which consumed less electricity and yet cool the rooms better.