The answer is simple. Because of the constant increase in the cost of living in Singapore, it’s usual to find Singaporeans seeking different ways to maximize their money. At times though, these plans don’t work out for them.
Then, why should you save? Saving money has many benefits. It offers you more options, and you have peace of mind. As you continue to save, it will get easier amass additional savings.
The benefit of saving money is seldom disputed. One of the basic (and often repeated) financial advice is saving. Despite the value of saving money, most of us hardly adhere to that tip.
Below is a look at several things that we often do to save money, but end up spending more instead. Let’s get started.
Credit Card Offers At F&B Outlets
Normally credit cards companies will offer you great F&B deals. This may be a one-for-one offer at a posh restaurant, or a huge discount off in your preferred café. Despite what the deal is, their goals are clear. The F&B outlets need you to dine in their outlets while credit card providers want you to use their credit cards for your spending.
And somehow, Singaporeans continue to believe that they are making savings each time they go for these deals. Instead, that is no the case. Simply put, every time you spend using your card to buy what you consider to be a great deal, instead you are not saving but are spending.
Getting Any Package available
Also, keep in mind that getting a package virtually never helps in saving money. And businesses are cunning. A package is often offered when a company thinks that though selling you a package, will have you spending more on their items than normally would.
Thus said, it does not mean that personal loan deals on cards by moneylenders are not good. Following a cost-per-visit method, you will certainly be saving money. But only when you utilize your package ahead of its expiry date.
In general, though, you might end up using up more money and not less.
Going To Malaysia To get Cheaper Goods
People who often drive to Malaysia know of the usual SOP. Sneaking through the Causeway and not getting caught, buy lots of groceries as it can fit in the car, before returning to Singapore. The deal here is saving as much money by using up as much as you can on cheaper goods. This is due to befitting RM3 to S$1 rate of exchange.
The issue with this method of “saving” is that it instead encourages you to use up more money than you plan to. As you try to accommodate overheads spent during the long and expensive trip to Malaysia, Singaporeans instead end up purchasing things that don’t need.
Home Cooked Meals
Some people believe that home-cooked meals are much cheaper thus you can save money. However, this not always the case. In Singapore, low-cost hawker meals are found in coffee shops and food centers. You can buy a meal from $3 and above, based on what you are planning to buy. Thus 2 people will spend $6. How does this compare to home cooked meals?
On the other hand, cooking a meal for two people at home will not be cheap as you thought. If you have tried cooking, you will know that purchasing a vegetable and one meat a supermarket might well cost you $4. when you add pre-made sauce, eggs, rice, and some garnish, the price of the home cooked meal will cost more than $6.
When you find yourself getting excited because of the huge deal a shop is offering you, then you might have to not be excited.
What is the logic around this? So when you are considering getting an item simply because it has a discount placed on it. It then means that you are not even thinking of the item. But rather you are only concerned about the huge deal offered.
In using up $50 on an item that once sold for $100 does not save you $50. what it does is that it only makes you use $50 more than the amount you originally have planned to.
Why save money
The essence of saving is rather simple: through saving money, you are able to enjoy more financial security. When you have some money put aside for emergencies, then you have something to fall back to in case something unforeseen happens. And, when you have savings put aside for discretionary expenditures. Then you can make taking some risks or even trying new things. Very grand reasons to have savings, right?
When you’re confident on why you need to save money, then you can consider getting in a savings mode by proceeding to a savings account. Then good news here that you will not have to undergo a major lifestyle overhaul for you to start saving.
There are many easy ways that will help you put aside some money. And these you can even start putting them into action today. Once you have cultivated the custom of saving, it will be easy for you to forget of ever having a time when savings for you were unheard of. You can use personal loans by moneylenders to establish an emergency fund.
Always know why you are saving and only use the money for a specific purpose. The idea is to establish a fallback plan that will cushion you during tough times.
It is very important to have savings or emergency funds set aside. This will increase your options in making choices that will greatly impact the quality of your life, eliminate the stress, and slowly offer you the possibility to retire.
Many wealthy people attained financial freedom by combining hard work as well as smart savings and also making great investment decisions. It is also possible for you to become just like these people, provided you start saving, working hard and investing. To set off, start out small, put aside a small amount like $1,000 in savings then grow from there.