These are the things that I do for saving money. 5 tips on how to save up for my trips.
1. Large fixed cost
Rent / mortgage is the number 1 enemy. Basically, I try to spend 1/6 or maximum 1/3 of my income on rent. It may sound ridiculous, but that is seriously what I do. It lifts the stress related to low monthly disposable income and helps a ton with saving money.
2. Frequently re-occuring costs
Food is another saving enemy. This is one of those expense that no one can avoid.
Pretty simple maths. If you buy lunch everyday during the week, your weekly cost will be:
EUR 10 x 5 days = EUR 50
5 days x 4 weeks = EUR 200
12 months in a year = EUR 2400
Sheer horror of the consequences of ‘grabbing a quick bite’ or that ‘coffee’.
Fruits, vegetables, meats etc frankly are raw materials. Unless you can taste the difference when you’re blindfolded, which ever place you buy it from is pretty much the same. To me, the key taste difference is in your cooking / preparations.
For raw food, buy from the cheapest
The savings add up quickly. Try it out 😉 Buy your grocery in Monoprix for a week and then buy grocery from only Leader Price for a week. For me, the purchase will be same genre items, but it made a 20-30% difference.
**For UK, I stick to Tesco and the large stores only + I sign up for the Tesco card for extra saving on train tickets.
Also, try out the supermarket’s own branded good. Many private labels are super competitive (in price, taste and quality)! It is worth trying it out. Saving a buck here and there adds up quickly too.
I am quite the miser when it comes to grocery. I spend maximum EUR250 per month (for 2 people). This is only achievable by only purchasing from Leader Price, Frere Tang or buy from other supermarkets when they run specials.
Personally, I am not a fan of organic anything. I honestly cannot taste the difference, so why pay for it? In fact, I am almost anti-organic and actively not purchase any products certified ‘organic’.
Plus, I generally do not buy any processed food. E.g. pre-diced, pre-marinated etc. That also saves me money.
Okay now, the question will be… is my cooking any good or will the food look depressing. Here are photos of my home cooking.
All it takes is a little creativity and attention to details (mainly, plating). It takes seconds to make your home cooking to look fab 😉
3. Fixed saving
ASAP I receive my salary, 1/3 is dumped into fix deposit or a saving account. Well, this is mainly for saving up to buy a property, but you get the idea. Leave this money ALONE. Unless there’s real emergency e.g. hospital etc, do NOT touch this saving.
4. Earn interest / Investment
Either place the money that earns interest or if you can handle the risks (e.g. losing money), you can consider placing the money into investment. ***Please understand that stock market and bond market do have risks. There’s no such thing as free lunch. Financial management firms also charge a percentage as their service fees. READ all the fine prints before deciding to do this.
5. Stick to your monthly budget plan
Sometimes it means skipping out on social activities. Sounds mean, frankly, why spend money or time on people that you’re luke warm towards? Both time and money are limited resource 😉
I use budget apps AndroMoney to keep track of my progress.
Run out of budget = You’ve depleted your ‘forecast’. There’s still money in the bank.
Run out of money = You’ve depleted your ‘forecast’. There’s no money in the bank.
important note
ALWAYS opt to pay your credit card balance in full. The interest is PAINFUL! Affordable credit / advance is SUPER expensive. Think THRICE before taking on any credit. E.g. car is a depreciating asset ==> paying more for something that will worth less.
By applying the above methods, within 1-3 months, I have a sizable saving enough for a trip.
So how about you? What do you do to save money?
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Camera: Canon 5D mark 3, Sony Z3+