I was checking Facebook when I came across this article from Business Insider:
5 simple habits of people who manage to save a fortune
Well, my parents were savers, I won’t say they have a fortune, but they managed to put me through Primary to Tertiary Education and some nice food on the table, without forcing their kids to work, considering my family started off poor.
I’ll just post the main points and some of my thoughts on it.
1. Live as simply as possible.
I’m not saying to like drop everything and live frugally (if you do it really will give you a boost, even so everyone needs motivation every now and then, to remind them why are they saving for). But rather, trim away the many “wants”, to just the “wants” you enjoy and the rest on needs. For example, say that new smartphone is out, but you don’t really use much of the phone’s features nor you’re into tech, so just keep that 1-2 year old phone and save money on that. Even if you need a new phone (old one is dying), just get the phone that meets your requirements (at most a 2nd newest phone).
I love food so I generally save on other things for it.
Trimming away tiny bits here and there, and even delaying purchases (wait for sales) to get better value actually helps the balance sheet loads.
2. Remember that every little bit adds up.
Saving tiny bits every day for years actually help. I usually walk to MRT everyday, instead of taking that crowded bus, Aeropress my own Americano/brew my own tea, skip the drinks during lunch.
Swiping my credit card instead of paying by cash for rebates? Buying online because it’s cheaper (and you get cash rebates)? And not spending just for the sake of reaching the minimum spend for credit cards nor the 360 account $400 CC bonus spend.
Sure, it wouldn’t bring a sudden jump to your finances, but these savings over time with the interest of a 360 account (2-3%) would build up =)
Helps to capitalize on future opportunities too!
3. Grab free money.
I don’t have much to say here, but maybe more on the lines of using company benefits to save on expenses (i.e. using flexibenefits to pay for overseas trips or even insurance/investments). Frees up capital that could be better invested or utilized.
4. Plan how to spend and save.
Budgets are great. Knowing where money goes (I’m not asking where every cent go, but generally you should know how much you pay for transport, phone bills, groceries, estimated and rounded off to nearest 10-50 bucks.), helps to ensure your money is managed efficiently. You can set aside money for bills, insurance, investments, etc and know how much room you got to devote to or spend for the rest (don’t over stretch yourself on this, keep some leeway for any sudden cash expenditure, i.e. broken spectacles, things need replacing).
5. Understand how the brain perceives time.
Our minds tend to prioritize on immediate things instead of the big picture. Something amazing on TV tends to catch your attention and tell you, I’m gonna get that awesome looking watch. But is it really necessary? Could it wait for a later time? Delay gratitude is important. You could use something you want as a motivation for arriving at a specific goal, it makes you feel good too. Look at the math and logic, not emotions. Step back, clear your mind and think straight and carefully. Differentiate between a “Want” and a “Need”. A “Want” is always best gotten later.
5 simple habits of people who manage to save a fortune
Well, my parents were savers, I won’t say they have a fortune, but they managed to put me through Primary to Tertiary Education and some nice food on the table, without forcing their kids to work, considering my family started off poor.
I’ll just post the main points and some of my thoughts on it.
1. Live as simply as possible.
I’m not saying to like drop everything and live frugally (if you do it really will give you a boost, even so everyone needs motivation every now and then, to remind them why are they saving for). But rather, trim away the many “wants”, to just the “wants” you enjoy and the rest on needs. For example, say that new smartphone is out, but you don’t really use much of the phone’s features nor you’re into tech, so just keep that 1-2 year old phone and save money on that. Even if you need a new phone (old one is dying), just get the phone that meets your requirements (at most a 2nd newest phone).
I love food so I generally save on other things for it.
Trimming away tiny bits here and there, and even delaying purchases (wait for sales) to get better value actually helps the balance sheet loads.
2. Remember that every little bit adds up.
Saving tiny bits every day for years actually help. I usually walk to MRT everyday, instead of taking that crowded bus, Aeropress my own Americano/brew my own tea, skip the drinks during lunch.
Swiping my credit card instead of paying by cash for rebates? Buying online because it’s cheaper (and you get cash rebates)? And not spending just for the sake of reaching the minimum spend for credit cards nor the 360 account $400 CC bonus spend.
Sure, it wouldn’t bring a sudden jump to your finances, but these savings over time with the interest of a 360 account (2-3%) would build up =)
Helps to capitalize on future opportunities too!
3. Grab free money.
I don’t have much to say here, but maybe more on the lines of using company benefits to save on expenses (i.e. using flexibenefits to pay for overseas trips or even insurance/investments). Frees up capital that could be better invested or utilized.
4. Plan how to spend and save.
Budgets are great. Knowing where money goes (I’m not asking where every cent go, but generally you should know how much you pay for transport, phone bills, groceries, estimated and rounded off to nearest 10-50 bucks.), helps to ensure your money is managed efficiently. You can set aside money for bills, insurance, investments, etc and know how much room you got to devote to or spend for the rest (don’t over stretch yourself on this, keep some leeway for any sudden cash expenditure, i.e. broken spectacles, things need replacing).
5. Understand how the brain perceives time.
Our minds tend to prioritize on immediate things instead of the big picture. Something amazing on TV tends to catch your attention and tell you, I’m gonna get that awesome looking watch. But is it really necessary? Could it wait for a later time? Delay gratitude is important. You could use something you want as a motivation for arriving at a specific goal, it makes you feel good too. Look at the math and logic, not emotions. Step back, clear your mind and think straight and carefully. Differentiate between a “Want” and a “Need”. A “Want” is always best gotten later.
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