This is the third article of a 4-part series on super practical, flexible, and adaptable money-saving tips we can all apply to improve our Wealthcare®. Check out the 1st article here, and the 2nd one here!
1. Review subscriptions and memberships
When subscriptions do jumpscares better than horror films.
David has mentioned it before, but it’s worth mentioning it again. Cancel unused subscription and gym memberships; while the monthly fee might be inconsequential to you, they can add up to a lot over time. Try thinking it this way also: money that we spend on unused subscriptions could have gone into investments. This means that we don’t just lose the money we don’t use, but also on the compound interests we could have earned.
2. Air-dry your clothing
Don’t use a dryer unless you’re in a hurry. Air-dry all your clothes to save more on your electricity bill, especially when utilities bills are increasing. Plus, not using a dryer will extend the lifespan of your clothes!
3. Plan ahead for gift shopping
Buy your gifts ahead, during sale periods and right after holiday periods to maximise your savings. (PSA: Christmas is upcoming, you may want to start shopping soon before festive prices kick in. Here’s an article we wrote previously on how you can be generous and thrifty at the same time.)
4. Use tech tools
Save more by using apps and tech tools like energy efficiency apps for the home and browser plug-ins that automatically apply promo codes for online shopping. Hugo is one such app that you can use to save even as you spend. Hugo automatically rounds up your transactions to the nearest dollar, saves the spare change and invests it in physical gold.
5. Join the library
The library is an excellent place for free entertainment for the kids and adults as well, offering everything from free magazines and movies to games and events. The National Library of Singapore is a wonderful resource you can take advantage of if you’re looking for some free entertainment. School holidays are great times to go to the library, with fun activities planned for kids and parents!
6. Use the hours-of-work rule
But relax, we don’t need to make buying things rocket science.
Keep impulse-buying in check by using the hours-of-work rule, by converting the cost of something into the number of hours you need to work to pay for it. Let’s say you earn $5000 a month, your hourly pay is about $25. How many hours do you need to work to pay for your purchase?
7. Do preventative maintenance
Keep your air conditioning unit, laundry machines and fridge in good working order by doing basic cleaning and maintenance where you can. This can extend their working lives and save you on repair costs.
8. Go for energy-efficient
Use LED light bulbs, water-saving showerheads, and energy-efficient appliances to save on your utility bills. Again, utilities savings may be insignificant, but if you could just save $7 on your utilities and invest that, you stand a better chance of becoming a millionaire.
9. Watch emotional spending
“Do you also sell ventilators here? I’m gonna need one.”
We’re very good at convincing ourselves we need something especially if it’s on sale. Before committing to buy, pause for a moment and check whether you’re buying something based on emotion rather than a genuine need.
10. Reuse and mend
Reuse and mend rather than buy to replace clothing wherever possible. In addition, buy clothes that don’t need dry cleaning so you can wear them for longer. Make rags out of unwanted clothing. Reuse other things like wrapping paper (remember how people used to decorate their Starbucks tumblers?), plastic bags, and food containers.
11. Shop with a list
Plan your weekly shops by checking out prices online beforehand and shopping to a list to avoid impulse spending. We’ve listed some ways fellow #HugoHeroes are saving on their shopping trips. Shop on a full stomach so you’re not tempted to buy more food than you need.
12. Build an emergency fund
Maintain an emergency fund so you’ll be less likely to go into debt if you incur a large, unexpected expense. Planning your finances well and keeping a reasonable emergency fund also means you don’t have to draw from your investments prematurely and lose out on potential earnings. Hugo Money Pots is a great way to build up your emergency cash easily!