Financial Intelligence - Part VII

Five Sure Ways to Save Money!

钱不够用 Money No Enough!

It never ceases to amaze me the sheer number of people who keep uttering these words. For those of you in such a predicament, fret not! Here are 5 sure ways to save money. To be successful, you need only to exercise discernment and mindfulness.

1. Stop trying to impress other people!
Most of your neighbors, colleagues or friends are too tied up with their own complicated lives, to even notice your efforts at impressing them. And, if you do succeed, you’ll just royally p*ss them off, causing them to envy and resent you. So, why spend excessively to keep up appearances and pander to your ego? In the end, it’ll be the bankers and entrepreneurs that will get the last laugh.

Remember the adage ‘He who laughs last, laughs best!’. So, please don’t follow the Malay proverb ‘Duit tak-de tak apa, Gaya mesti ada’, lest you regret it in your old age.

2. Pay off your loans
Credit card loans, car and housing mortgages! Pay off these loans as fast as possible, especially the former. An astounding 18% per annum is charged by credit card companies, on your oustanding debts. So, the earlier you pay off the principal, the more you save. Next, try to pay off all your mortgages. This will reduce the total purchase price you spend on your car or house.

3. Live frugally
Always live within your means. This is common sense! It merely means that you should ONLY buy what you can afford. Always set some money aside for a rainy day and avoid debt unless you have strong assurance that you can repay such loans. If you live beyond your means, you are sacrificing your future for momentary happiness. Act wisely: 先苦后甜!

4. Don’t go shopping
If you don’t go shopping, there will be no avenue for you to spend money. By going shopping, I mean browsing in shopping malls and looking at the enticing goods and services on sale. Most of us would be unable to resist the temptation to buy at ‘spur of the moment’. Avoid advertisements as well, since they are designed to do only one thing – encourage you to buy and consume stuff! If you really need to purchase groceries, make a full list and go out and buy based on the list. JUST DON’T GO SHOPPING!

5. Take care of what you have and wear it out.
Learn to take care of, not only your body but all your possessions as well. Routine preventive practices such as exercising; cleaning your tools and dusting your refrigerator coils will save you huge medical and repair bills, later on.

Further, if your current possessions are still usable, continue using them instead of buying something new. Following the latest fashion trends is costly. Practice recycling your old material instead of junking them. For example, a chipped cup can be used as a pencil holder.

Conclusion:
Saving money is easy! Just exercise some discernment & mindfulness. The tips above should help you on your journey, towards financial independence.