10 More Ways to Save Money

Here are 10 more ways to save some money. I am not suggesting being a miser, but learn to be frugal.

1. Give personal gifts rather than splurging on an expensive gift. A handwritten card can mean a lot more than an expensive camera.

2.  Entertain wisely, rather than expensively. A quiet dinner at home with friends is much cheaper and more exciting than a $100 dinner at a fancy restaurant.

3. Always ask for a discount. You’ll never know when you might get one.

4. Experiment with “house brands”. Some of them are as good as the original brands, especially those for house cleaning.

5.  Spend paper money. This helps to rein in your expenditure. Spending on plastic is the classic way to kill yourself with un-necessary expenditure.

6.  Use cold water to wash your clothes and lower the temperature on your hot water shower. Your clothes will last longer, the colors wont fade and you’ll save a bit on electricity and heating.

7.  Want to save on long distance phone calls. Learn to use Skype. It’s free and all you need is a computer and an internet line, which you already have if you’re reading this.

8.  Opt for interest free bank accounts. Never go for accounts like HSBC’s Powervantage account which charges you a monthly fee of $10 when your balance goes below $2000.

9. Buy in bulk. Cereals, dish washing fluids, detergents and other house hold items can be bought in bulk from discount stores which add up to quite a bit of savings annually.

10. Switch all the lighting to energy saving bulbs. Energy saving bulbs, while they may be pricier than normal bulbs, will repay your investment after 18 months.

11. Inflate your car tires to their correct pressure and remove unnecessary items from your car booth. This makes your car lighter and consume lesser fuel.

Your Buckets for the Future

Saving every single cent to pay off all your debts isnt really a good thing in the long run. Do you really want to spend the next 10 years diligently paying of your credit card bills and others, wihtout going out for a single vacation or taking the family out for a dinner every month?

Paying off your debt is very important as the interest charges alone is enough to kill your future. But I have been around enough to know that you can have a life while managing your debt.

It’s called Buckets. And it’s simple to set up.

When you get your pay check at the end of the week or end of the month, divide them into your buckets. For example, you could have the following buckets:

Myself – 10%
Rent and Utilities – 35%
Credit Card Debts – 20%
Vacation – 5%
Dinner – 5%
Misc – 25%

The 5% that you allocated monthly towards the vacation and dinner bucket will build up to a point where you can take yourself or your family to a dinner every month or two; or a vacation each year.

By allocating your funds in this manner, while still reducing your debts, allows you to have a QUALITY life. Yes, reducing debts is your main priority but this shouldn’t stop you from living a life. By not over spending and diligently filling your buckets every month, you can live a good life while being on the path of financial freedom.

Some Interesting Numbers from the Malaysian 2009 Budget

Rm720

minimum monthly pension for pensioners who have served at least 25 years with the government

RM400

tax rebate for those waith a taxable income of RM35,000 and below

<RM24,000

tax exemption for petrol or travel allowance between home and workplace

100% (import duty) and 50% (excise duty)

tax exemption for franchise-holders of hybrid CBU cars with engine capacity below 2000cc

RM35 billion

allocated to enhance public transport