Getting the Best Out of Your Money
Tags: Saving, Finance

Photo by Micheile Henderson on Unsplash

Instead of spending your time thinking how to save, why don’t you use the time to think how to earn more?

This has always been one of the popular questions asked in a personal finance management discussion. The idea isn’t wrong. Let’s be honest. It doesn’t take a genius to understand that as long as your income is more than your expenses, you are more than likely fare well in your life.

But just like trying to fill up a bucket with holes, there will be a limitation to how fast, and how much water you can scoop to offset the drainage. Not to mention, the emotional drain one incurred by doing what feels like a futile effort.

Regardless how much you earn, using your money with the best effectiveness is always a key to personal finance. Even big companies execute cost saving as one of their strategy to keep profitability high.

Credit card cashback/benefits

If money is evil, credit card is the devil. That’s a myth. Money is of course not evil, and credit card need not be frown upon. There is a multiple selection of credit cards that offer cashback and benefits. You just need to find one that suits your expenditure style. On a good year, I hit almost $3000 of saving by the cashback the credit cards that I hold. Go figure how much money you need to have in your fixed deposit or investment account to achieve that figure on an annual basis. Be careful though. You want to save on expenses that are unavoidable (like bills or household expenses), not spend more to save more!

Tax deduction, relief and rebate

Take advantage of any personal tax deduction, relief and rebate. In certain part of the world, you may get tax deduction for items like buying a laptop, incurring expenses on books or education, and investing in a retirement scheme (yes, there is such tax deduction, no jokes). Even businessman does this with their business. Know the law, break no law. Benefit from it instead. You’ll be glad to pay lesser tax or better still, get a tax refund at the end of the year.

Hold off that buying thought

Sure, we can’t run away from buying. What we can do though, is to make sure that we buy what we really want or need, instead of buying on impulse. How many times have you bought something, only to store it somewhere in the house (I don’t remember where) weeks later? Before proceeding to the next big and/or self gratifying purchase, sleep on the decision and give it a second (or third!) thought before pulling the trigger. This will hopefully keep your wallet closed and your home slightly clutter-free.

Stock up on sales

Grocery stores and supermarkets frequently have sales on a range of products on a rotation basis. Try to buy the essential items when they are on discount, not when you desperately need it. The trick is of course, to stock up (not hoard) the items that you frequently use in the household and make sure that you don’t buy them, only when you desperately need them. Think about it. A 10% discount’s saving could mean as much as 3 years of having the same amount of money in your fixed deposit saving.

Don’t skimp on good product/maintenance

Cost saving does not equate to cheaping out. Don’t skip the necessary maintenance. If your car needs maintenance, by all means spend a little more to maintain it so it could last longer. You would also get the benefit that new technology become cheaper over time. Buying a car now and buying a car next year with the same amount of money could mean a lot of difference in term of the gadgets or add-ons you’ll get. Likewise, if a better product could last longer but cost more, by all means, go for it. You’ll save more in the long run.

Spending your time fruitfully

Ever thought of doing some gardening at home? Interested to fix-it-yourself instead of getting rip off? Well, NOW is always the best time to start. With the current Internet age, you could learn something new easily from sources like YouTube. Take advantage of it. Learn something new that interest you in your free time. Grow some tomatoes or basil. It may not occur to you but those may very well bear fruits (pun intended) in the long run and save you some along the way. Even if it don’t, at least you’ll enjoy the process!

Live within your means

No amount of money in the world can sate one’s appetite if it knows no limit. Do you need the latest phone, every year? Do you need that newly released handbag? Do you still need the yearly oversea trip, having just purchased your dream house months ago? Instead of living a ‘dream’ in a foreign land, only to come back (to reality) a week later, shouldn’t you live your own dream, in your own dream house? Yes, you need to strive and aim higher all the time. But it should not stop you from being grateful with what you have.

Gamify the experience

Getting the best out of your money need not be a chore. The best way to do this effectively is to enjoy it and not dread it. Change your mindset. It could be as fun as a game. I personally took pride, and fun, when I’m able to beat the system. It’s not about the saving or the cost effectiveness anymore for me. It has become an amusing game. Remember. It’s not about being cheap. It’s not about cutting expenses until you take joy out of your life. Its about getting the best out of your money.