The main factor of living well with a capped income is to live well within your means to not run into debts. Now, we’re not saying that it’s an easy-peasy thing to do, just that it’s not as hard as you think!
Here are some pointers which we hope will leave you determined to live better with what you have and come out happier too.
Take opportunities for sales & discounts
Watching out for sales and making good use of discount coupons can help save more money on groceries and other essential items. You might or might not realize this, but ultimately, all these add up to a considerable amount of savings if you keep practicing them.
Firstly, what are your monthly expenses?
Everything that you have to pay for each month, such as house payments, utilities, Internet, phone plans, groceries, vehicle loans, and credit cards, are essentially fixed monthly expenses. They are also known as monthly overhead expenses and you will have to put aside the total amount required to cover them. Provided that they do not exceed your monthly income and/or you are living within your means, determining these expenses, and seeing to them helps you to manage your monthly income more wisely. If they do exceed your monthly income, the wise thing to do is to sit down and re-think your priorities and expenditure so that a balance is reached between your monthly income and expenses. Either way, a good budget can help you reach a more comfortable position.
Go for lower rates
Refinancing a loan for a better rate or even negotiating for a reduced interest on credit cards will help you cut back on your overall monthly expenditure so that you can have a more manageable life and then some.
Let’s get real (and honest too)
Take some time to sit down and make a list of each of your expenses, and set them all against your income. You’ll then have a much clearer picture of where you can relax on your expenses and also where you’ll need to cut down.
For example, is anybody at home even watching TV regularly? If the answer is no, then borrowing or downloading movies would be so much cheaper than having to pay for premium channels each month. The same goes for the habit of watching movies at pricey cinemas regularly, and even regular visits (or take-aways) at expensive coffee outlets when cheaper options are widely available.
Small steps, the big overall outcome
Life is such that we tend to do things daily without thinking too much about it. Sometimes it’s for convenience and at other times, it’s to be on the same path with others around us. Often though, we don’t realise that it’s these little things that add up to our overall expenditures, and there may be ways to cut down on them if we want to.
For example, if you can manage to fix a lunch-box to take to work instead of eating at a restaurant or eatery, there’s loads of cash to be saved right there in the long run. Also, have you ever thought of carpooling to work and back, switching from disposables to reusables, ( e.g from premium tissues to handkerchiefs), etc? All these little things will save you money but the question is, are you willing to make that change?
There are also money-saving habits you can start to form at home, such as unplugging appliances when not in use, such as your cell phone chargers, fans, washing machine, and microwave. You may be surprised at how much you can save by taking these seemingly small steps.
Save on commuting
If possible, consider making full use of our ever-advancing public transport system. Trains, LRTs, and buses will take you almost everywhere in the city!
If you’re not comfortable being around too many commuters, or if you’re trying to move around with a child or two, you could always use the service of a cab, Uber, or GrabCar! The latter two have become popular modes of transport for people who do not fancy getting behind the wheel on high-traffic roads and also, they save you from having to pay hefty parking fees.
We won’t go so far as to advise you to sell your car unless you are convinced that it will enlighten your financial burden, but we will point out the facts that you might be saving quite a bundle on maintenance, repairs, and insurance, as well as the aforementioned parking fees. If you already have a car that’s fully paid for, by all means, do keep it, provided you don’t pay too much for petrol and parking and you use it only when necessary.
Eat wisely and thriftily
Whether we like it or not, food costs money. Everything from groceries and junk food or fast food, to eating out have price tags attached to them, hence how much you pay for your food will affect your finances in one way or another.
On that same note, it’s high time to consider a reduction or better still, elimination of junk food, for the face it, who needs to be financially unstable AND unhealthy? You can start by identifying nearby stores that sell reasonably-priced produce, which you can easily prepare yourself for your family’s meals. Just a simple change in this area could mean:
- big savings on dining out
- going off unhealthy food (which includes the habit of ordering home-delivery fast-foods)
- consuming more wholesomely prepared meals.
Start planning your family’s meals
It’s time to ransack your pantry and take stock of all the present ingredients you have at hand. Identify all that needs to be used up soon before they meet their expiry dates or go bad. Place these aside and plan a few good meals which will use them up to avoid wastage of both money and goods.
Then, follow up on a weekly meal plan. This will help in more ways than one!
Firstly, determine the dishes you’ll be having for each day of the week. Next, identify the ingredients needed for them all and compare those against what you already have stocked that are still good to use. From there, you’ll know what else you will need to get on your next grocery shopping trip. As you follow through with this clever plan week after week, you’ll soon be avoiding a lot of wastage, plus there will be less impromptu spending on last-minute decisions on meals.
Smoking: Bad for your health as well as your wallet
Cigarettes are not cheap! The cost from RM12 to RM17 a pack. Smoking a pack a day will set you back about RM360 – RM530 a month! By not smoking, you’ll be saving between around RM4,320 – RM6,320 a year! Now, isn’t that quite a sum to save while you improve on your health?
Walk more – it enhances more than your health
Most of us prefer to drive everywhere, even if it’s to the next block. Did you know though, that every time we walk to a destination and back, we’re enhancing our health and at the same time, saving money on fuel and parking fees? Go ahead, try it – the next time you need to go to the grocery store, if it’s within a 15-30 minute walking distance, put on a comfy pair of shoes, leave the car keys where they are, and walk it out!
Note: For safety reasons though, avoid carrying a purse or handbag. Instead, put your money/credit cards/ ID/cell phone into your pocket. Also, do be alert as you walk to your destination and be aware of your surroundings.
Why health truly is wealth
Ever been to a doctor’s lately? It isn’t cheap! While the need to visit a doctor will inevitably arise at some point or another, you can always do your part by taking good care of your family’s health and well being. Here are some useful pointers:
- Home hygiene and ventilation. Ensure that your home is clean, acceptably free from dangerous germs and has good ventilation, even in the bedrooms
- Nutrition. Plan simple yet nutritious meals for your family. Always ensure that they have regular meals, including lunch boxes for school, office, etc. Consider appropriate vitamin and mineral supplements that may help close up possible nutritional gaps in their diet.
- Exercise. Getting everyone to get up and move about is easier said than done but the fact is, regular exercises can do wonders to improve the health of both the young and old. Encourage your whole family to walk, cycle, or simply have fun at a playground or park together, and to some degree, you’ll be keeping the doctor’s appointments to a minimum.
Practice smart spending
There is always stuff in the house, either non-food stuff such as tissue paper, toilet rolls, cleaning products, and toiletries, or, non-perishable foodstuff such as coffee, tea, sugar, canned food, condiments, dried noodles, etc which you buy regularly. Whenever possible, buy your basics when they are on sale and make large purchases at a go. This saves money in several ways including the petrol and parking fees involved in getting you to the store and back.
It’s time to face the reality that prices of practically any foodstuff vary (sometimes quite drastically!) from store to store. For example, the price of a milk carton (1 liter) can cost as much as RM8.90 or more at an upscale grocery store, especially if that store is situated in a high-end shopping complex. That same brand of milk of the same carton size, however, can be as low as RM4.45 at hypermarkets such as Giant, Tesco, or TMC, and that’s just one example! Hypermarkets also tend to have regular, value-for-money offers on various grocery items. Other than hypermarkets, you can also check out wholesale supermarkets such as Checkers or Segi for stuff that you use a lot of.
Prices of goods at supermarkets and hypermarkets themselves tend to vary from one store to another, so knowing the pricing trends of stores that are accessible to you will help immensely when you’re trying to cut down on your budget while still enjoying a decent lifestyle.
When it comes to getting thrifty, sometimes all it takes is a shift in one’s mindset. If you’re serious about saving money, you will not ever walk out of the house without a list of stuff you need to buy. Also, you’ll stick to that list unless you genuinely did forget something important and happened upon it whilst shopping.
Don’t snub those Kedai RM2
Many of us don’t think much of the various RM2 shops we pass by on the way to our regular shopping outlets. You’d be genuinely surprised at how some of them have grown in terms of product varieties and choices. Don’t take our word for it though, for it wouldn’t hurt to walk into one of these stores and check out the stuff they have there. Compare them to what you have on your shopping list, including the price tags, and decide if it’ll save you a bundle or not!
Say ‘NO’ to compulsive spending
The enticement is everywhere you look – From items on sale at the entrance of your favourite pharmacy to the tempting menus places strategically outside a restaurant. So it’s no surprise if you always find yourself spending over and above your comfortable means.
Try this little experiment or self-evaluation, if you will: Walk into your kitchen and take a look into your refrigerator or kitchen cabinets. Or… walk into your bedroom and check out your vanity cupboard or your stock of toiletries. Do you genuinely feel that every single item you see is being put to good use, or will be put to good use before it’s expired?
The fact is, if you walk into any given store with some cash and no shopping list, you’ll somehow end up with bags full of stuff you don’t genuinely need. This stuff, at the end of the day, cost money that you could have easily saved. Hence, whenever you need to go to the grocery store, restaurant, or drug store, have a plan, and stick to it.
Important: Set up an emergency fund
Try setting aside an amount each month for unforeseen incidents that may require you to spend extra money. Earmark this special fund exclusively for emergencies. That way, unexpected incidents such as plumbing problems, car repairs, or extra medical expenses will less likely devastate a well- planned budget, as you already have some money kept aside to cover these costs.
