Monday, 4 July 2011

Quick Tips on Saving - Part II

Identify Wastage

Do up a monthly self-budget report with breakdowns on the spending- loans, transport, food, household, bills, insurance, etc.
Identify what are the necessary expenditures and what are the unnecessary expenditures by reviewing your receipts, credit card bills and saving account details. It is useful to keep the receipts of large expenditures or uncommon purchases so you would not forget 'where the money goes'.
Make a list of items that you have spent on which you can actually do without, or the spendings that make you feel guilty or regret afterward.
Recording may take some discipline, but gradually it can become a habit.

Reduce Wastage


After you have reviewed and identified a list of 'wasteful' spendings, use that as a reminder. What could you have done to avoid them? Methods that you can adopt to reduce $ wastage include:

- Borrow it
If you know you are not going to use that item often or keep reading that book, why not borrow it?

- Sales and discounts
Wait for them if you do not need the item urgently or it is not a limited edition that you badly wanted, why not wait for a sales or a promotion before buying?

- Dig up the old stuff
If you have lost track of what you owned, it's time to open up that storage cupboard and start tidying up. You might just find the thing that you need. Don't end up having multiple of the same functional item - well, unless you are a collector.
Sell or giveaway the items you don't need.

- Avoid impulse buys
Especially for big tickets, weigh the pros and cons. Not forgetting to compare prices.



Say 'I can't do it.' - but not without trying.

***

Sunday, 3 July 2011

Quick Tips on Saving - Part I

Step 1: Identify your saving goal - what is the purpose of your savings.

Step 2: Calculating how much money do you need to save.

Step 3: Calculate current income and proportion to set aside in order to save X amount in X time.

Step 4: Plan how you can set aside this sum of money.

(Bonus Step 5: Think about where you can park the money for optimal returns yet keep them safe.)
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