5 Impractical Saving Tips that are Strangely Popular
There are lots of ways to save money in a costly city like Singapore. Even money lenders like cashdirect.sg/ will say that saving is a key step to getting out of debt and living a financially stable lifestyle.
Nohttp://cashdirect.sgt all advice for saving is sound, though. Some may make sense – they may even be popular – but they’re actually not worth it. Here are five such pieces of impractical savings advice.
Cancel all streaming subscriptions
Monthly subscriptions to services like Netflix are not all bad. In fact, they are a low-cost yet satisfying form of entertainment. The bad thing is when you have too many subscriptions, and you don’t use most of them. This is what drains your budget.
You should only cancel those streaming services you no longer use. If you use one streaming service regularly, you can keep it. Having a source of entertainment is key to maintaining balance in life.
Stop drinking bubble tea altogether
This has become common financial advice in Singapore, but it really isn’t doing much. Especially not if you drink bubble tea only occasionally (like a few times a week).
Unless you drink bubble tea more than once a day, the savings may not be that significant if you eliminate it altogether. The better advice is to reduce your purchases of bubble tea. For instance, if you used to drink it every day, bring it down to three times a week. This way, you won’t have to deprive yourself of something that can relieve stress.
You can also focus more on reducing bigger expenses like frequent dining out. Eating in a fancy restaurant costs a lot more each time than a cup of bubble tea. You’ll save a lot more money that way.
Eat only home-cooked meals
In terms of cost, cooking your own food certainly beats dining out. However, this is only true if you only dine out in more pricey restaurants. Also, preparing all your meals at home has other associated costs, like fuel and electricity. Not to mention it also takes a lot of your time.
If you don’t want to cook all your meals at home, you have an alternative. In Singapore, hawker centres are hugely popular and affordable. You can get decent, filling meals for $5 or cheaper.
With this, you can save both time and money. Cook some of your meals at home, and eat at hawker centres when you’re at work or out of the house.
Always max out your CPF SA top-ups
While it’s a good idea to max out the top-ups on your Special Account (SA), it’s no good to put all your money in one place. Diversify your investments, too. This way, you can maximise the growth potential of your money.
Consider other investments like stocks, SSBs (Singapore Savings Bonds), corporate bonds, and REITs (Real Estate Investment Trusts). Consult a professional financial adviser if you need help understanding what types of investments are best suited for you.
Buy resale flats far from the city centre
It’s true that resale flats further away from the city centre are much cheaper. However, you have to factor in the extra cost of transportation and time lost to commuting. It may not be worth the money you save on the flat.
It’s always wise to choose a flat that’s as close to your workplace as possible. If you have children, another factor is if the place is close to their school as well.
Living near your place of work and your children’s schools can save you a great deal of money over time. For this reason, living closer to the city centre is advisable.
Also, to save in the long run, keep large indoor plants and wide-open windows at home. This will help you by keeping your home environment comfortable in hot conditions. So, you will need to switch on the AC for less period of time.
Conclusion
Everyone wants to save as much money as they can. Thing is, people can fall for impractical advice for saving, like the five described above.
You may think you’re saving money if you follow those kinds of advice. But that’s only for the short term; in the long run, you’ll end up saving less money. In fact, you can end up spending more money instead.
