PETALING JAYA: When it comes to saving money, especially for a rainy day, it’s easy for that budgeting plan that we worked so hard on to get derailed.
Dr Joyce Chuah, chief executive officer of wealth and retirement planning consultancy Success Concepts, pointed out that saving money doesn’t have to be complicated.
“With a few simple money-saving strategies, you can improve your finances on track without sacrificing too much,” she told StarBiz.
Prioritise saving
As part of financial planning, Jeremy Tan of financial planning consultancy, Excellentte Consultancy Sdn Bhd, believes one’s priority is to have positive cash flow at the end of each month, which can then be utilised for wealth protection, management and distribution.
“Cultivate a habit of being frugal with your money and try to save for ‘a rainy day.’
“That way, you will always have money for big-ticket items or events such as down payment for buying a car or a house, a wedding or vacation, your children’s education or for your retirement.”
Tan admitted that achieving this can be a tall order. Nevertheless, he said he believes there are practical ways to do it.
“Have a budget and adhere to it. Determine how much you can spend and save.”
Make lifestyle changes
Chuah believes being frugal is all about making smart decisions, emphasising that it starts with identifying areas where you can save.
“Learn to do things yourself. Activities such as cutting your hair or doing your nails, can save you money on salon visits.
“You can also groom your pet at home (depending on the pet, of course!) or take care of basic car maintenance to avoid expensive workshop costs.”
She added one should also try to maintain their appliances and motor vehicles well.
“Regular maintenance is key to extending the lifespan of your appliances and vehicles, saving you significant money in the long run.
“For example, changing your car’s oil on time, or checking tyre pressures (and avoiding the uneven roads) can prevent costly repairs or tyre replacements.”
Chuah emphasised that one “should not wait until something major goes wrong”.
“Following the manufacturer’s guidelines for maintenance can help keep your appliances running smoothly for years.”
When it comes to meals, Tan feels someone on a budget should minimise eating out.
Chuah concurs, believing cooking at home not only saves money, but is also healthier.
“Prepare meals and pack your lunch for work. It’s healthier, cheaper and saves you time.
“Plus, making your own coffee with a good coffee machine is a great way to avoid pricey coffee outlets.”
When marketing for groceries, Tan said it would be good to plan what you need.
“Plan ahead on what you want to buy, so as to avoid spending unnecessarily. Purchase only what is essential for your meal, drinks, personal care and cleaning supplies for your home living.”
Want versus need
Cutting out temptations is also a practical way to save money, said Chuah.
“Remove shopping apps from your phone that encourage impulse buying. Avoid browsing online stores when you’re feeling bored, sad or stressed.
“It is easy to fall into the ‘retail therapy’ trap.”
Chuah also said someone should also know the difference between “wanting” something, versus “needing” it.
“Before purchasing something expensive, write it down and give yourself 15 days to decide if you really need it. This extra time can help you make more thoughtful decisions.
“Also, review subscriptions. Take a moment to look at all your memberships and streaming services. Cancel the ones you don’t use regularly, or look for more affordable alternatives.
“With increasing competition, you may find better options at lower rates.”
Tan said the same also applies when it comes to spending on utilities.
“Whether it’s for home, work or business, choosing networks or cellular subscriptions to meet your needs, rather than your ‘wants’, will also help you to save more.”
Track spending, manage debt
Chuah noted it is easy to overspend when you’re not keeping an eye on where your money is going.
“Use a budgeting app to track your expenses. Look for patterns and figure out where you can cut back, whether it’s on dining out, entertainment or subscriptions.
“Sometimes, just being aware of your spending can make a big difference.”
Nevertheless, this can sometimes be easier said than done.
Still, Chuah explained that not all debt is bad, emphasising, however, that it is “important to manage it well”.
“There is good and bad debt.
“For instance, loans that cost less than what you can earn from a safe investment such as a savings account can be considered “good” debt.
“But high-interest debts, like credit cards, can quickly spiral out of control.
“Try to pay off your credit card bill each month to avoid hefty interest charges. If you’re struggling with existing debt, consider transferring the balance to a card with a 0% introductory interest rate.”
If you’re still struggling, consider talking to your bank, Chuah advised.
“If you’re paying high interest on loans or credit cards, speak with your bank about better options.
“Refinancing or consolidating debt could help lower your monthly payments.”
Ultimately, it’s important to make decisions quickly and early.
“By making small changes to your daily habits, you can start saving money without feeling deprived,” said Chuah.
“It’s about being mindfully frugal of where your money is going and making simple adjustments that add up over time. Start today and watch your savings improve,” she said.
