How to Save More

[Mika]

Given the current economic climate and inflation, you need to save as much as you can. Most people can save only 5-10 percent of their take-home pay (after tax deduction or provident funds cut). However, considering the increasing expenses and the emergency funds we might need in the future, 5-10 percent saving is not enough. So, how do we save 20 percent or even 30/40 percent of our take-home pay?

Here is a simple strategy.

Make a list of your expenses and categorize your expenses into categories like necessities, wants, and luxuries. You cannot cut your necessities because you need them to live. You might also not be able to cut your wants because that’s how your life becomes interesting, however, what’s the role of luxury in your life, when you do not have enough savings for the future. Even your expenses under the wants category can be cut for certain months. You might also adjust your necessities by switching to cheaper alternatives for food or moving to a cheaper neighborhood.

 

[Jasmine]

I like chocolates and ice creams. I can list chocolates and ice creams as unnecessary expenses. These items are as much necessary as the food I eat for lunch and dinner. Whether you realize or not, food is number one contributor of expenses. A lot of people cannot cut their food expenses. However, there are numerous strategies to cut your food bill. One simple way to cut your food expenses is by eating at home or carrying your home made lunch box. By doing this you can save at least $1000 per month if you happen to be in the United States. Another way to cut your food bill is to choose cheaper alternative. In my place, vegetarian food cost less than non-vegetarian food, therefore, I sometimes switch to cheaper alternatives for protein source. I also don't buy supplements. Why do I need to spend money on protein shake, when I can get is through soy milk?