MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

You Must Stop Buying Items Just Because They Are Cheap

Do you ever purchase items that you do not need just because they are cheap or on sale?

Many of us do! If you adopt this hobby, it can easily get out of hand. Prevent yourself from spending on indulgences by regaining self-discipline with these 5 tips:

SHOP FOR WHAT YOU NEED

Previous studies have shown that people who overspend are craving for the surge of the feel-good hormone called dopamine. They associate this hormone to shopping for items while they are on sale. It is okay to give in to what your heart desires every once in a while as long as you are in control. However, you must regulate your shopping habits if you are overdoing it.

A bargain deal such as Lazada coupons can be a great score but, not if you have not intended to buy the item in the first place!

CONDUCT AN INVENTORY CHECK

I can still recall the moment when my mother came home with bag of groceries in her hands. Inside the bags were bathroom supplies such as shampoo, conditioner, and toothpaste. It dawned on me that she picked up the same items merely four days ago. She says it slipped her mind. Well, she is not alone!

It is common for people to buy new items because they cannot remember what they already have or they cannot locate them. I am not limiting this scenario to the items in your wardrobe as it is applicable to household products, car tools, and so on. A neat solution is to conduct a monthly inventory check to filter out what items are worn out, ill-fitted, and useless. You can toss or donate these items afterwards.

SPEND ON QUALITY

Clothes and other products that are of quality lasts longer and are usually more comfortable. Think about it! Cheap clothes are not entirely cheap as time passes. Mediocre items made with thin materials and poorly sewn ensembles wear out faster than quality ones. Furthermore, it requires time to replace and repair them. Consider spending your hard-earned money on few good things than, in loads of rubbish things.

Image Credits: pixabay.com

USE WHAT YOU BOUGHT

Whether you want to admit it or not, you use your most valuable items the least. You want to protect your precious item for as long as you can. I do too!

When I got my hands on the iPhone 6s last year, I played with it for a few hours and kept it safe in my cabinet. I relied on my iPhone 4 for so long that I jumped several generations when I bought the said device. Can you imagine how happy I was to explore the new iOS features and to savor the larger screen? Despite my satisfaction, I still preferred using my iPhone 4. I adored the new device and I did not want to spoil it immediately. A couple of weeks passed and I came to realize the irrationality in my actions. I bought this device for a reason and I must use it!

Use your priced item to maximize its value. Dissatisfaction can only lead to buying cheaper knockoffs or settling for less.

WALK AWAY CONFIDENTLY

Shopping eats up a significant portion of time. Sometimes, you may feel like your trip to the store was wasted if you do not purchase anything. This is why boutiques and online stores employ strategies to draw shoppers in for a long period of time. But, you must not fall for this! Purchasing something unnecessary makes is more wasteful than spending your time on window shopping.

Image Credits: pixabay.com

Remember that it is alright to walk out of the store and buy nothing.

Sources: 1 & 2

SWAT, a new ride-sharing app, takes you anywhere for just $5 fixed

Do you take Uber and Grab often because of its cheap fares?

Here comes SWAT, a new ride-sharing service, that has recently launched and promises to take you anywhere for a flat fee of $5 regardless of the distance.

Too good to be true? Read on.

SWAT aims to provide low cost and convenient transport that is accessible to everyone. To achieve this, they analysed millions of commuters’ data to identify repeated group travel patterns.

The data shows that most of us travel from and to the same destinations more often than we think. SWAT technology adopts a data driven approach to pool commuters real time to achieve highest vehicle utilisation rate at the lowest cost for commuters

SWAT is an intelligent pre-book ride services that provides taxi-like services at bus-like prices.

SWAT currently uses Toyota Hiaces as its Swatmobiles and they can ferry up to 13 passengers at one time. Think carpooling.

The catch, however, is that you need to prebook your ride up to 1 day in advance or up to 30 minutes before your departure. Prebooking your ride creates reliability and reduces the stress of early peak hour commute.

In some occasions, you will also need walk to the pick up location of no more than 300m to wait for the vehicle. These are bus stops, taxi stands, lamp posts, petrol kiosks, and landmarks.

Your travelling time will be slightly longer than if you took a taxi but the difference should be no longer than 10 minutes.

How it works:

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As part of its pilot launch, the services currently operate from 7am – 10am on weekdays excluding public holidays. Routes and servicing hours will be expanded progressively.

Currently, iOS users can download the app from the Apple iTunes store. It will soon be available for download at the Google Play Store.

For more information on their services, check out their website here.

* Pre-booked rides will be free this week till 30 Sep 2016.

Do Not Let Your Financial Problems Keep You Up At Night!

Is there anything worse than reaching home after a stressful day only to be kept up late because your brain keeps ruminating over your financial burdens?

If this happens to you constantly, it is a sign that you are either feeling helpless about your current situation or trying to exert too much control over your future. Stop right there! Thinking about all your financial problems before you fall asleep will not solve anything. It may even cause health issues such as headache, chest pain, and muscle tension on the next day.

The obvious move that you must take first is to solve the underlying problem. Set aside a portion of your day to contemplate about the solutions to your situation. Afterwards, work on your sleep hygiene. It involves healthy sleeping habits and maintaining a conducive sleeping environment.

If these two strategies are not enough, try my other suggestions:

a. ACCEPT EVERY CHALLENGE

You must accept the fact that you cannot accurately predict the future. No one can! Hence, it is always a good idea to be prepared for any money woes that life will throw at you. Make calculated strategies to shield yourself against unforeseen events such as unemployment and critical illness. For instance, you may save at least six months’ worth of your salary to cushion unemployment or apply for health insurance to fund your critical illness.

Let go of all the worries once you have planned for the situation. Unfortunate events may test you but, you will be alright.

b. BE ASSERTIVE

If you keep on lending your hard-earned cash to friends and family, financial issues can rise. Your money belongs to you and you are accountable for it. If you do not feel comfortable in lending money to a friend or a family member then, be assertive. Genuinely say that you cannot loan the money at the moment due to your financial responsibilities. Discuss the matter in a mature manner. People who care about you will understand.

c. CREATE A RELATIONSHIP

For your relationship with money to flourish, you must understand that it involves the two of you. Do not let the power of spending govern you! When things go badly, it is partly because of what you brought to the situation and partly because of what the money brought.

d. BE ACTIVE

Redirect your cognitive energy to productive matters such as catching up with your friends or updating your C.V. or resume. If you have more time in your hands because you were recently unemployed, improve your relatively low mood by exercising. You do not have to exhaust your savings to stay health. Be active by following the free online tutorials or by registering at the “Places To Find The Cheapest Gym Memberships In Singapore“.

Image Credits: pixabay.com

No matter how much you dream about achieving an indestructible body like Incredible Hulk’s, it is still impossible. This is why you need quality sleep to combat the daily challenges. Constantly worrying about your finances is not only draining your body but also straining your relationships. Remember to value your well-being as much as you value your bank account.

Sources: 1 & 2

6 Strategies To Control Your Urges To Spend

Self-control is one of the virtues that a savvy Singaporean can cultivate. Having a sense of self-control helps you to manage the seemingly irresistible urge to spend money. While, people who lack it have a tendency to instantly gratify their “itch” to splurge.

Combat this dilemma against your willpower by employing these strategies:

TRACK YOUR SPENDING

I know how cliché this sounds but, awareness is the key. You must note down how much money comes in and goes out. Previous literature displayed that this act of tracking your spending is an efficient tool to control one’s urges to spend. Start by keeping a daily list of your expenses.

IMPOSE LIMITS

To prevent accidents and to maintain order in the streets, authorities impose speed limits. Apply the same idea to your finances by imposing monetary limits.

It easy to create tangible boundaries to some services such as postpaid and bundle plans. However, this is not always the case. This is why Professor and TED Speaker Dan Ariely highlighted that it is important to dictate your own boundaries. Doing so was proven to help increase self-control. Furthermore, sharing your self-determined limitations to other people urges you to stick to it more.

MAKE ONE DECISION AT A TIME

The shiny distractions all over the shopping mall are designed to confuse your mind and to open your wallets. You see, findings showed that strain in cognition (thinking) depletes self-control. This is why shops are graced with flashy signs, vibrant colors, loud songs, and bright wall decor.

Conquer the distractions by making one financial decision at a time. This strategy is not only limited to shopping. Divide your financial decisions instead of overwhelming your mind.

SAVE AUTOMATICALLY

Avoid committing much of your willpower toward deciding whether to save or to spend by automatic your finances. Some institutions allow the employer to automate your salary in a bank account that is solely for your savings. Patronizing this method will lessen the temptation of immediate spending.

Image Credits: pixabay.com

TAKE TIME TO DECIDE

With my background in Psychology, I can attest to the idea that the emotional states affect the way you spend. Anxiety was shown to decrease the likelihood of taking risks and sadness was shown to increase spending. Emotions influence your self-control in complex ways.

This is why I encourage you to take sufficient time for contemplation before buying something. Wait for a few hours or a few days, especially for huge and expensive purchases. Many people have submitted to this efficient strategy. Be one of them!

PREVENT TEMPTATION

A surefire way to stay on top of finances is to avoid temptation at all costs. Reduce your time spent on shopping malls and invest it in more productive matters. Alternatively, you may leave your plastic cards (i.e., credit and debit) at home. Simply carry the amount of cash that you can confidently afford.

Image Credits: pixabay.com

These six strategies share one goal and that is to take control of your finances again. May these aforementioned help you to reclaim what was rightfully yours.

Sources: 1 & 2

You Snooze, You Lose: How Missing Opportunities Can Cost You

If you are not knowledgeable about the existence of English idioms, I bet you are wondering about the meaning behind the title.

What is it with me and my adoration for idiomatic expressions? For starters, most writers dance with the words to choreograph deeper stories. My fondness for the underlying meanings attracted me to this type of phrases. Let us go back to the matter at hand.

“You snooze, you lose” pertains to the rationale that waiting too long for an opportunity can result to not gaining what you want or to the success of someone else. Someone else can beat you at opening the doors of great possibilities if you let things slide. I cannot blame you! It is usually difficult to pinpoint if a certain opportunity can bring future rewards.

Image Credits: www.pixabay.com

If you had a fortune-telling ability or a magic crystal ball then, you could envision whether your decision is a clever move or a huge mistake. That sounds undeniably useful when used with precaution. However, it is far from reality! Just take a moment to reflect upon the missed opportunities at the tech industry. I will start with a story that is close to social media addict’s heart.

Facebook giant Mark Zuckerberg once invited five people to participate in his upcoming business venture. About a decade ago, only two people showed up. These two people namely Dustin Moskovitz and Eduardo Saverin are billionaires today. I can only imagine the impact of Facebook’s success to these three close-minded people.

The next story highlights a relevant brand in today’s culture – the Apple. Steve Jobs offered his boss, the Atari Founder Nolan Bushnell, a chance to invest US$50,000 (about S$67,000) to Apple. He let the opportunity pass by. If he accepted the offer, he would have owned a third of the company. Its market value now is about US$535 billion (about S$724 billion).

Turning down an innovative idea may cost you. But, what is worse than taking a conscious effort to say “NO”? Doing nothing!

Indifference toward an opportunity has its consequences and sometimes these consequences exceed that of a bad decision. For instance, Amy hired a financial consultant to help manage her trendy restaurant. The financial consultant exhausted all his resources to search the most profitable location for a new branch. Despite the priceless efforts that the financial consultant gave, Amy opted to do nothing about it. Among her reasons for indecision was lack of time to discuss about the matter. This can potentially cost affect the entire brand.

Aside from close-mindedness and indecisiveness, there are other ways to dodge a shining opportunity. Do yourself a favor and beware of these instances:

a. by beginning with a negative mindset or a wrong goal in mind,
b. by not being persuasive enough to make a recommendation,
c. by not doing sufficient research on the company you are applying for, and
d. by ignoring your online reputation.

Image Credits: www.pixabay.com

Analyze the situation and make a calculated decision when a blossoming chance comes along. The expense of missed opportunity can be exorbitant to your job performance, work relationships, credibility, and wealth. Do not risk these things due to indecisiveness and close-mindedness.

Sources: 1, 2, 3

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