Beat inflation and still enjoy life with these smart financial strategies
Inflation impacts our daily lives, and even without an Economics degree, we can all feel it. When the price of a simple meal rises by a few cents, it’s a clear sign of inflation in action. Global instability only exacerbates this issue, with inflation possibly sticking around for longer than anticipated. In September, core inflation rose by 5.3%, and transport fares will increase in December. But don’t worry – here are five practical tips to help you save money in Singapore, without feeling deprived:
Adopt the 50/30/20 Budgeting Rule
The 50/30/20 rule is a simple yet effective way to allocate your income. Half (50%) of your monthly earnings should go to essential expenses like groceries, rent, and transportation. Thirty percent (30%) can be spent on your wants, like a new phone or a holiday. The remaining 20% should go towards savings or paying off debts. This method helps you track your finances better and ensures you’re spending within your means.
Reevaluate Your Luxuries
What defines luxury? Maybe it’s that extra-large coffee or a pricey camera you’ve been eyeing. While these little indulgences might seem harmless, they can add up. Cutting back on such purchases, like limiting your daily coffee or opting for public transport instead of taxis, could save you S$5 to S$10 per day. Not only will this lighten your wallet, but you’ll also benefit from healthier habits.
Thrift Shop for Sustainable and Affordable Fashion
Thrift shopping is not only eco-friendly, but it can also save you money. You can find high-quality, second-hand clothes, including designer pieces, for a fraction of the price. By curating a minimalist wardrobe, you’ll avoid unnecessary spending on trendy, one-off outfits and reduce clutter. The key is to buy staple items that can be mixed and matched, helping you save in the long term.
Track Your Spending with Budgeting Apps
To keep your finances in check, track your spending regularly. Many banks offer financial tools, and there are also various budgeting apps available. These apps categorise your expenses, making it easier to spot areas where you can cut back. Unsubscribing from unused memberships or eliminating unnecessary expenses can also free up some extra cash for your savings.
Look for Cheaper Alternatives and Deals
Price comparison apps, like Price Kaki, can help you find the best deals on daily essentials and food. By comparing prices across various supermarkets and food courts, you can stretch your dollar further. Price Kaki also tracks price changes and alerts you when an item on your shopping list becomes cheaper, ensuring that you make informed decisions and save where it counts.
By being mindful of your spending habits and using these practical strategies, you can make a significant impact on your finances without feeling like you’re sacrificing your lifestyle.
