MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Use Envelope Budgeting To Manage Your Money In Just 3 Simple Steps

According to DEBTSteps.com, envelope budgeting or envelope system is a popular way of maintaining a budget. It starts by storing the cash into separate categories of household expenses that are allocated in separate envelopes.

1. TRACK YOUR LAST MONTH’S SPENDING PATTERNS

One of the first steps that you have to take is to analyze your spending patterns, variable expenses and fixed expenses (i.e., monthly electric bills).

Fixed expenses remain the same every month (e.g. Hand Phone Plan, or HDB Rent). Variable expenses include food, entertainment, clothing, and other expenses that may change every month or year. The challenge now is for you to choose on which expenses you can reduce.

2. DEVISE A BUDGET PLAN

Recording all your expenses, no matter how big or small they may be, can help you plan your budget wisely. Categorize your expenses 7 or more sections such as Rent, Utilities, Electricity, Groceries, Gas, Entertainment, Savings, Loan, Childcare, Tax, Travel, etc.

For example if you are Fresh graduate living in your parents’ house and you earn S$1600 a month. Allocate your money with the fixed expenses first.
Rent- S$700

Utilities- S$150

Electricity- S$80

Student loan- S$100

Fixed Expenses Total: S$ 1,080

Then your variable expenses…

Savings- S$170 (transfer it to your bank account)

Groceries- S$100

Travel- S$100

Entertainment-S$100

Emergency- S$50

Variable Expenses Total: S$520

3. PUT YOUR INCOME IN SEPARATE ENVELOPES

Image Credits: wikihow.com/Do-Envelope-Budgeting

Use your marker to assign each category to each envelope. Use whatever size is best for you. It shall be able to fit easily in your purse or wallet. Follow the budget plan and allocate your money accurately. Spend only from the designated envelope and stop spending once you’ve emptied it. This practice of discipline will help you save a great deal of money.

Watch this simple video tutorial of the envelope budgeting or envelope system by NCNBlog:

How A Couple Paid S$36K Worth of Debt In Just 6 Months

A couple from America has consciously decided to look into their expenses and pay off their US$27, 000 (S$36, 474) worth of debt in just 6 months.

Jackie or better known in social media as The Paleo Mama and her husband sat down to discuss their finances since they were supposed to buy a house. If they are going to pursue in buying the house, they will get themselves wrapped up even more in debt.

They found out that they had US$50, 000 (S$67, 546) worth of debt due to accumulated education/student loan and the worth of their new car. They did not realize that they were supposed to pay student loan quickly as its interest and value pile up in time. So, they were determined to turn things around.

Here are the 6 things they did to cut down their expenses and earn more income:

1. MONEY MANAGEMENT

First, it is important to track where your money is going through the last month’s bank statements and receipts. The couple noticed that they are spending too much on groceries and eating out.

Image Credits: Jason Rogers via Flickr

With these things in mind, they devised a plan to categorize each expense and allocate specific amount of money on to it.

2. CUT DOWN MOBILE PHONE PLANS

They switched to prepaid phones and got rid of their iPhones. This brought them from US$160 cost of mobile phone plan to US$60 cost of prepaid phone per month.

3. CUT DOWN THE CABLE TV AND ELECTRICITY

They started using Netfilx and Hulu to stream shows (the first month is Free) rather than subscribing to cable TV. Also, they managed their electricity by turning off the lights and controlling the temperature of the air conditioner.

4. SELLING AND USING ESSENTIAL OILS

In order to earn more money on the side, Jackie learned how to make essential oils and sell them online. They also stopped buying over-the-counter medication and cleaning products and started using essential oils instead.

5. SELL THEIR STUFF

They sold their old car (now they have one family car), furniture, clothes, toys, and so on. Furthermore, they only buy used clothes on Goodwill or the local thrift stores. This helped them earn a lot of money.

6. BE HONEST ABOUT THE SITUATION

They called various companies to tell them that they can’t afford the various plans anymore. The customer services helped them to reduce the payments by more than 75%.

As you can see, Jackie and her husband were able to pay off over half of their debt by budgeting wisely and selling their stuff. Fortunately, you can also use these strategies yourself!

4 Saving Tips You Must Know Before Buying Your Dream Car

Aside from your wedding or your house, a car is one of the biggest investments you will make in your entire life. You do not want to pay more that what the car is worth or get stuck in paying your car loan. This is why it is paramount that you do it right.

1. TIME IS ESSENTIAL

Due to working hours, circumstance, and quota system, the best time to shop for a car is on the last weekdays of the month.

Most car shoppers visit the store during weekends where salespeople are usually busy. To ensure undivided attention, purchase a car early in the week. It is best to purchase later within the day, as salespeople are anxious to get home so they will spend less time negotiating. Lastly, best deals are at the end of the month especially if the dealers are just a few sales away from reaching their quota to meet their incentives.

2. BUY THE OLDER MODELS

Instead of buying a new model of car and losing a great deal of money, purchase a car that is at least 1 to 2 years older. Some may even take second-hand or used cars into consideration.

3. RESEARCH TO BE ENLIGHTENED

Determine how much you want to spend and whether you want to buy a brand new or secondhand car. This will give you a view of how long you have to save to replace your current car (if applicable). Research on the real value of your car options to see if you are getting a good deal.

4. RESIST THE UNNECESSARY

Dealers may make you pay more that you have intended so be firm and him or her that you mean business. Since they work on commission, they may offer you warranty, road service packages, and so on. If it is not needed, say no and stick to it.

Image Credits: JOHN LLOYD via Flickr

Don’t allow yourself to feel uncomfortable and pressured into anything you are not interested in. If you go with a certain number in your head, stick to it. Now is not the time to stray from your budget.

4 Useful and Money-Saving Travel Tips for Memorable Adventures

1. PRIORITIZE AND BE MINDFUL OF YOUR EXPENSES

Rather than spending more money on high-end accommodation, why don’t you spend more on fun activities such as skydiving? Spend it on once in a lifetime experiences that can only happen on the place you are at.

Save up to 58% on your travel expenses though HomeExchange.com. It is a popular website where people rent out their own home and find a place to stay while they travel. With this system, you will get a local feel and get to be toured to places that you will have never visited if you travelled by tour packages.

2. BLEND IN

Do what locals usually do and you will find yourself immersed in interesting conversations with them. Do not be afraid to try the cheap street foods that the locals are queuing for (unless you have an upset stomach).

Image Credits: Simon & His Camera via Flickr

I have a friend from Serbia who wants to bargain in Hong Kong flea but her district features can be a prey to vendors who want to take advantage of their customers. So, she let her Chinese friend help her bargain in the local language. It worked.

3. TAKE THE LOCAL TRANSPORT

Instead of flushing your money by taking taxis all around town, try to ride the local buses or trains. It will not only allow you to save a great deal of money but it will also give you memorable experiences. It is not everyday that you get to sit to locals carrying their fresh produce from their harvest.

4. INITIATE A CONVERSATION WITH YOUR FELLOW TRAVELERS

Converse with your fellow travelers and the locals to get credible information on which places to go to or which places do they enjoy the most. Chances are, you may find yourself in untouched places of beauty where only a few people go.

3 Delicious Valentine’s Day Dining Places Under S$50

They say that a quickest way to a man’s heart is through his stomach. If you desire to impress your loved one without breaking the bank then brace yourself as I lay out the 3 Delicious Valentine’s Day Dining Places in Singapore That Are Under S$50…

1. SAVEUR

Who would have thought that affordable yet scrumptious French cuisine exists in Singapore? Young chefs named Joshua and Dylan paved way for casual dining that serves renowned French dishes at reasonable prices.

Your special someone would definitely enjoy the simple ambiance and the taste of food that is raved all over the social media. One yelp.com user even wrote on that it was “90% as good as the dish served in Paris”.

Image Credits: saveur.sg

Delicately handmade “Duck Confit” and “Seafood Pasta with Tiger Prawn and Lumpfish Caviar” are crowd pleasers. Their main courses start from S$10 while their desserts are S$7 and up. Generally, the menu’s maximum price is S$30. Saveur has various locations around the country namely in: Ion Orchard, Far East Plaza, and Purvis Street.

2. PIEDRA NEGRA

If your partner is looking to try something different then feast your way to Haji Lane where Piedra Negra Restaurant is located. Piedra Negra is a Mexican restaurant with “hippy” vibe, cultural ensembles, and colorful graffiti walls. Much like Saveur, the menu generally is S$30 and under.

Image Credits: facebook.com/Piedra.Negra.Haji.Lane

The restaurant takes up two units and specializes on Latin American cuisine. If you are an expat looking forward for a taste of home then try their amazing handmade Guacamole that is certified fresh.

3. ANTOINETTE

Named after the late Queen of France, Antoinette boasts its interior beauty that is known for its Parisian style tea and pastries. Antoinette’s selection of lavish treated and handmade dishes will be perfect for celebrating your perfect date. It is established by the Sugar Daddy Group.

Image Credits: antoinette.com.sg

Take your girl friends on a Valentine’s day lunch for high tea and ladies’ luncheons that you all can enjoy. Food generally ranges from S$5 to S$30. Honorary dishes include the “Beef Bourguignon” and the “Gnocci Carbonara”. If you are a dessert lover then I suggest for you to try the “Antoinette”, a sinful serving of Earl Grey ice cream, raspberry jelly, and milk chocolate shards.

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