6 money saving tips to stretch your salary

(This is a guest post by Ryan Del Villar. Ryan is a content strategist for MoneyHero. He is also a freelance writer who specializes in Online Reputation Management)

We’re all guilty of overspending or going over our budget every now and then, especially in situations such as when we’ve just received our paycheck, there’s a big sale at the mall, or we simply can’t resist a good bargain. If you always find yourself broke before the end of the month due to your wayward spending habits, the following money saving tips might be able to help you stretch your budget:

Share your dilemma with a friend.

The first step towards reform is to admit that you’ve a problem. Actually voicing it out is a good first step toward realizing your wish to modify your spending habits. If you know that you won’t be able to make a change on your own, letting others—a friend, a spouse, or anyone who cares about your financial welfare—in on your goals to save more will probably reinforce your resolution and push you to work harder on your goals. 

A confidant may also help ease all the stress and anxiety you’re feeling. Talk to someone whom you know can offer words of advice and support as you try to cope with your money problems. Another good idea is to seek the help of a non-profit organization regarding your financial situation. They can give you expert advice on how you can manage your money better.

Make gradual changes.

If you really intend to save, don’t hesitate to make even the slightest lifestyle modifications. Start with small things, such as walking or riding a bike instead of driving, bringing packed lunches to work, decreasing instances of dining out, using discount coupons and vouchers, and cancelling magazine subscriptions or gym memberships that are not used, among others.

Track all your spending.

It’s easy to declare that you’ll start saving more money and avoid overspending, but actual implementation is not so easy and might take a little time. To motivate yourself, note down every purchase you make—no matter how small. You can use a notepad or download free mobile apps for keeping a record of all your spending. Proper tracking can guide you in creating a realistic budget and help you see areas where you tend to overspend.

Talk to your loan provider.

If you’re having a problem paying off your debts, it’s best to talk to your loan provider or lender to explain the situation. State the reason why you can’t make the repayments required. Your bank may be willing to make a special arrangement to make it easier for you to pay; just as long as you let them know before you incur further penalties and high interest rate charges.

Refrain from using your debit and credit cards.

As much as possible, minimize using credit and debit cards in your daily transactions. Budgeting and making payments using cash may be an easier way to track your spending. Nowadays, you can easily compare credit cards online. Because of this, people tend to be tempted with the idea of using credit cards than actual cash. Of course, using credit card is good as long as we do it in moderation. Taking trips to the ATM may seem like more trouble than it’s worth, but if using your cards has so far given you nothing but heartaches, this is one strategy you can definitely apply.

Pay your bills on time.

Always prioritize your monthly utility bills: gas, electricity, water, mortgage payments, rent dues, internet subscription fees, telephone bills, credit cards, and other necessary bills. Paying these should be a top priority as failure to do so can result in grave consequences.

Remember these money saving tips and try to apply as many—if not all—of them in your everyday living. With discipline and strict compliance, as well as the support of family or friends, you will start noticing a big difference in your personal finance. Keep at it and in a few years’ time, you will begin to reap the rewards of having financial freedom.

8 Magic Words to Say that Makes Saving Attractive to Kids

(This is a guest post by Tina Beltran, a blogger and writer of moneymax.ph)

“Money doesn’t grow on trees,”parents always say. It’s the sort of thing that echoes in your head every time you’re about to spend our money on something you’re fairly certain your ma will not approve of. Now that you’re the adult, it’s your responsibility to educate your little ones on the value of saving. Not quite sure how? Here are some “magic words” you can use to help them better understand how and why they need to save:

1. The sooner you save, the more your money grows.

You know how easy it becomes to postpone saving for another day. As soon as they start receiving an allowance, instill in your children a sense of urgency; show them that they better start saving now. Monitor them closely at the start, until saving becomes a habit for them. For example, at the end of each day, have them account for how much in total they spent and saved, and show them where to put their savings (such as in a piggy bank).

2. Wait before you buy.

Impulse buying is the greatest enemy of saving. While our urges are something that are difficult to tackle head on, teach your kids to use another approach: to wait at a much later time—say, a day or a week—if they face the temptation to buy something that isn’t a necessity or not listed on the budget. Hopefully, they’ll wake up to their senses and stay on track toward their saving goals.

3. Paying on credit is spending money you don’t have.

Credit cards are extremely useful and convenient, but misuse could result to grave financial consequences. The earlier you teach your children about debt and interest, the more responsible they would be in handling their finances as grown-ups.

4. Save first, spend afterwards.

In teaching children how to budget their allowance, show them how it’s easier to save if they set aside part of their money for saving first, before they spend the rest on their needs. Motivate them to spend by helping them plan for a major purchase such as a new phone or a new toy. Being able to buy something they want from their own savings would make them see that saving has its rewards.

5. Save for the rainy days.

Ideally, we don’t want our kids to experience poverty or deprivation. However, it’s one of the realities of life. Even if they’re raised in comfort, unexpected things happen and they need to be prepared, both emotionally and financially. Remind them everyday why they shouldn’t stop saving: so they have a safety net for whatever emergencies arise in the future.

6. Money is only a tool.

Telling this to your kids will build in them a better mindset about money. They shouldn’t see it as something that give them happiness, but rather as a tool that they can use to reach goals and achieve their dreams. Emphasize that they should control money; not the other way around.

7. Every cent you save and spend adds up.

Every penny saved is a penny earned, Benjamin Franklin once said. Children should be made aware that any amount they choose to either spend or save adds up to a meaningful sum in the long run.

8. Money doesn’t grow on trees.

Of course you shouldn’t miss this one: because there’s truth to it. Our parents knew it. Our grandparents knew it. Kids should learn the value of hard work and be taught to make sure that any amount of money they spend must go to something that adds value to their lives, and not just on a passing whim.

Money may not grow on tree, but it can with investment. Now, as that concept is still too complex for the average kid, you can, in the meantime, encourage them to open a savings account of their own, where they can grow their money bit by bit. Teach them how to avail of a kiddie savings account and watch them grow up to be financially responsible and money savvy individuals. It’s a form of investment as well and not a bad way for them to get started.

5 ways on how to avoid overspending during the holidays

The holidays have arrived once again.  People are no doubt going to riot throught malls for their last-minute Christmas shopping.  It is easy to get swayed by the spirit of gratitude and you buy gifts and new anything this time of the year, but what about what happens afterwards?  Will you soak in depression once you realize that you're so broke?  Worry not, because here are the best five ways that you can avoid spending all of your money:

1) The naughty and Nice List

This isn't to determine who gets something (or nothing) from you - although that helps a bit too in terms of prioritizing the people who you really want to spend your money on - it works for actually making a list.  Whether you have a big budget or not, put it on the list and STICK TO IT. Mark your budget it in red so you'll alway be reminded that it's all you have.  Once your list is ready, keep it in your pocket, yout phone or your wallet.  Always look at it wheever you are about to buy something you know isn't  in your list.  Remind yourself that you're supposed to be a good gift giver, not really Santa.

2) Gifts from the Heart (and Hands)

Who says personalized gifts are irrelebant?  The best gifts are still the ones you made yourself. If you've got time a few days before a supposed Christmas party or reunion, try to whip up something artsy or homemade, something that will significantly lower your Christmas shopping costs.

3) Put your card in a sock

Not a Christmas card or a gift tag, but your credit card . The point is to keep it safely tucked away when you're shopping. People get drowned in debt because they use their credit cards when shopping.  If you use the little piece of plastic to buy all your Christmas needs, you might find yourself still paying for the debt even two to three Christmases in the future.

4) Everyone gets something

If you're the type who wants to make sure that everyone you know needs to have something from you this Christmas, then it's time to shy away from bargain deals - it's time to embrace them.  Especially when you are buying time and you have a small budget, you can try buying a bulk of less pricey giveaways rather than buying everyone in your list an individual gift.  Buy something that people will remember you by, like a bunch of pens or a batch of cookies or chocolates for everyone.

5) Resist your temptations

Even if you're got everything on a budget, you'll fall dangerously close to still overspending if you spot something that YOU want for yourself. You'll make silly excuses like "friendship accessories" or "bestie4life" as a reason to buy the same gift just for yourself.  Remember that this is the season for giving gifts to others, not yourself.

It's too late to start saving now, so a good piece of advice for next year is to save well before the Christmas rush begins.  Other than that, keep these things in mind and you'll definitely start the new year with a smile on your face and a not-so-empty pocket. 

"Money Leaks" Month

This month we bought a lot of stuff, and coupled with big expenses and bills, we are definitely burning a big hole in our pockets.  More of hubby's pockets than mine!  *wink*  

 

#1 Baby list

The list is getting longer, but we got the necessary stuff to be packed to Sibu.  My SIL advised us to buy most baby things in Kuching because those things are rather pricey in Sibu.  As you know that baby things are not that cheap, so we bought the baby cot, strollers, feeding bottles and accessories here.

 

#2 Assessment

Already settle the 2nd half year's house assessment bill.  Very happy that there is a council office in MJC, so it is convenient and fast to pay the bills since not many people know this place.

 

#3 House bills

Settled around RM1700.00 for the house in term of the yearly service charges, insurance premium and quit rents.

 

#4 Telekom

Banked in some advance money in the account, so it will auto-deduct around RM60.00 every month till the next time I am back.

 

#5 Water bill

Pay RM50 advance to my resident's office so it will auto-deduct RM5.00 for the months where minimum pays are charged.  Enough to cover till I am back in November so water supply will not be cut off. 

 

#6 Travel expense

Paid RM280 for our air flight to Sibu.  Luckily I got a cheap fare for myself and my 2 kids.  And I also booked our air flight back here in November. 

 

#7 Others

My credit cards and other miscellaneous which is over RM1500.00.  *sob sob*

 

 

Sigh!!!  And I realised there is one more week left in the month of June.  And it means one more week before we are leaving Kuching.....