I am frugal, but I don’t scrimp & eat all the time just to save up my targeted amount. However, after talking to some friends, I found out that I am the only one who can actually save up the most in the ratio of savings to income.
Do you have a special project/occasion (eg: Proposal/weddings/house) to save up fast for? If yes, this post is written just for you! 😉
Today, I’m gonna share my tips on saving up to 50% of monthly income!
I am an average executive income-earner, and I earn some extras from occasional paid blog adverts. I try to save 50% from my basic income after CPF deduction. Most months, I did it. YES, I’m HARDCORE like that! ;-p
And the reason I wanna do it so much is because I have too little in my CPF so I have already set a target for myself in 5 years and I just got to achieve it!
For example: Basic salary $2500 + Comission/Extra Income $500-$1000
I usually take my extra income as a blessing to reimburse the days I shop like crazy and times I take cabs too often and I gotta highlight that the 50% income saving will NOT work for people who are paying for a house and car now. Some months, I saved more than 50% when I earn more. So if you have lesser commitments now, quickly save!!
I’m gonna just look at the basic pay for the savings for now because not everyone has a freelance job or earns comm. Thus, a $2500 gross basic after CPF deduction will be around $2000. Let’s work out an example savings based on this $2000 bring-home.
Example of a monthly expense list:
$150 phone/broadband bills
$150 insurance fees
$300 household allowance
$400 daily expenses (How the fuck is this possible?!)
$1000 savings (50% savings)
*May not be achievable for most of you, hence you can adjust your savings to $800.
My most-budget-est daily expenses record is $300/month. *gives myself a pat on the back*
Steps to achieving and points to consider
- Planning the monthly expenses
Most people will set aside the amount they wanna spend and how much they can save from there. Usually that results to $0 of savings. For me, I set aside a fixed amount of savings and limit myself to whatever is left to spend. Of course, you got to work out a comfortable saving amount in order not to starve yourself to death! You be surprised that I actually can still visit restaurants/cafes a few times a month still!
- Set up a separate savings bank account
I opened a Maybank account because they have almost no ATMs around me lol. That means I can’t draw $$ anytime I want. Naturally, the savings sit there safe & sound.
- Being prudent; careful on what I spend on
While eating at the office building’s canteen, I will think:
> The can of 100plus at the drink stall cost $1.50. The one at the vending machine cost $1.00. It’s obvious which option I went for. Small savings count too!
> Chicken rice set cost $4.50. Economic rice with 2 veg + 1 meat cost $3.00. I save $1.50!
- Do not waste
If I know I can’t finish the food, I won’t order much. If a certain piece of clothing doesn’t get worn more than 4-5 times, I most likely won’t buy it. I trade/share clothings with my sisters/bestie.
- Shop for non-luxury
When shopping, I ask myself “Do I really need this?“, “How often will I be using/wearing this?“, “Do I have appropriate bottoms to match this top with?” & “Am I able to get this cheaper elsewhere?“.
These apply to even non-branded stuff. I don’t lust for branded stuff. If I do, it’s probably sportswear. However, I have extreme high discipline level that I’ll opt for the more affordable version.
- Finding deals online
A retail shop in the mall mark up prices of a merchandise much higher as compared to an online store. They gotta pay rent, manpower, utilities, yah know?
I bought a number of sports equipment online and saved a lot!
- Hang out less with friends who splurge on too many things and everything
Friends who are a spendthrift usually influence you indirectly because gatherings and hangouts will definitely cost you a bomb!
- Plan in advance birthday gifts and celebrations
If I have someone special in life/family member’s birthday coming, I always take note to be even more thrifty months ago so that it doesn’t affect my saving plan that much.
- Go home after work
I don’t really go out after work. The most is going for my fitness circuit training or a casual dinner with my good friends nearby. One thing also because I work 10am – 7pm, so all I wanna do is faster get home have dinner, shower and rest.
Counting your savings can be as fulfilling as buying a new bag! Although sometimes I can go crazy shopping online… to prevent myself from over-spending, the only thing that would help is NOT to go online or step into a shopping mall unnecessarily!
Ultimately, whether your savings happen or not will depend on HOW MUCH YOU WANT IT as well. If you are not in a rush to have a lot of $$ in the bank account asap, then a good amount to save will be 20-30% of the income.
I wish you all the best in growing your little money tree. We can’t do any investments with not a cent of money either.
Guard them, love them, grow them!
Your Thrifty Guru