How To Quickly Save Half Your Income!
If you think saving half your income is hard, I'm here to share that it's possible!
There are many who even have kids who save half of their income. You can do so too by being frugal.
Is being frugal being stingy? Absolutely not!
Being stingy is to "take advantage of someone" or " not be generous to someone" but being frugal is about YOU choosing not to spend recklessly.
It's an attitude towards money that you apply to ALL your purchases.
Frugalness is the first step to saving half your income and sharing with you these powerful mindsets
Be Early For Anything
How often have you taken taxis because you were late?
This is one of the most common reasons of racking up credit card bills. Agree?
If you've been spending a lot on taxi fares or grab rides, you need to get it under control.
The solution is obvious, that is to wake up earlier tomorrow and take the bus.
There are dining apps that give you a discount to eat early!
Have you heard of Eatigo? If you haven't this is the link!
You can get up to 50% off for eating lunch early!
On a side note, there are other dining apps to help you save.
One of them is BURPPLE BEYOND and click this link to check them out too.
Living Healthily saves you money in the long term
If you are self employed or if you run a business, isn't each day sick going to be loss of revenue?
For myself, I run a financial advisory business and I'm keenly aware that being sick is very costly.
Hence, I spend selectively on nutrition and exercise. This would cost less than an expensive medical bill!
Haven't been working out enough...
If you work for an organisation, taking too much MC will impact surely your boss's opinion of you.
Doesn't this somehow affect you income eventually also?
I've even heard that some companies even give a bonus to staff who do not take MCs!
EXTRA REASON TO NOT SMOKE: Insurance premiums for smokers are at least 30% more expensive!
Below is a quick summary for term insurance plans. If you are keen to get an exact quote, click here to contact us.
For declaration of non-smoking status, it is must be at least after 1 year of full quitting.
There are also plans with discounts for people with good health readings.
EXTRA TIP: Cut back on alcohol
These are expensive vices and if you want to be frugal, cut them out!
I've a private client who used to spend almost $2,000/m in drinking with his colleagues. It was only after he took hard looks at his credit card bills that he decided to reduce this habit of drinking drastically.
Keeping your fixed expenses low
Fixed expenses are cost that you cannot remove easily.
The biggest fixed expenses to most families has to be mortgage and car loan.
If you want to save more cash, the easiest way is to budget for your home properly.
What if the mortgage can be paid fully from your CPFOA, then you wouldn't spend cash correct?
Even Warren Buffett lives in a a modest house that cost less than $1m.
What about car cost? Loans, insurance, servicing, parking...
A car would easily cost $1,000/m in Singapore.
Cars depreciate in value and will cost you cash to maintain. Plus there is so much work from home these days, can you hold back on purchasing a car?
Keeping your variable expenses low
Do you track your expenses? Either with an app or an excel sheet?
If you haven't and you are struggling to save more, do this right now.
Tracking your expense will highlight where variable expenses are going to.
Are they dining? Are they entertainment?...
You will find clues on where to save more next month onwards.
Very often, variable expenses are linked to lifestyle inflation aka lifestyle creep.
It's a phenomenon that causes you to spend more as you earn more.
How can you save half your income if you spend your new income with better food, better clothes, better presents....
I believe it happens because of your environment which shapes your financial expectation.
Move your money out
If you want to save half your income, do not leave it in the bank.
Firstly, keeping it within the bank means you may accidentally splurge it away.
New watch, new car etc....
Secondly, banks pay so little interest these days! You've done the hardworking saving half your income
Keeping it in the bank account only leaves it to become eroded by inflation.
You might as well move it to an account that pays you better returns.
Check out SYFE CASH+ and if you want more information, watch the video
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