If you’ve been following the financial adventures of folks like Budget Babe and The Woke Salaryman, you’d know that they managed to hit the milestone of saving $100,000 before turning 30.
$100,000 is a daunting figure, but you don’t have to chiong to reach that target. As with any goal, it’s more sustainable to work your way up by taking small, steady steps. So why not first set yourself the target of saving an extra $10,000 (or more if you can) this year?
Inspired? We share five realistic ways you can add an extra $10,000 to your net worth.
Image source: iStock
Save $500/month: Save it before you spend it
If you find it hard to stick to a budget, the best way is to automate your savings. When your paycheck comes in each month, set up an automatic recurring transfer to divert at least $500 of it into a separate savings account.
As the saying goes, out of sight, out of mind. With this sum out of your checking account, there’s less chance you’ll be tempted to spend it.
Committing to save $500 each month should be within reach for most people. If your monthly salary is $4,500, your take-home pay should amount to about $3,600. Saving $500 means you still have 86% of your paycheck to spend!
Save $150 a month: Drink more water
Giving up bubble tea or sugary coffee confections benefits not just your waistline but your wallet too. A cup of Golden Bubble Milk Tea from Koi costs $4.30. A latte from Starbucks easily costs more.
Many people also tend to order a drink when they dine out. Beverages served in restaurants have very high margins. It’s as if restaurants know you don’t want to appear cheapskate in front of your date / friends.
If you can somehow spend $5 less on drinks each day, that’s $150 saved a month. You don’t have to go cold turkey. It can be as simple as buying fewer cups of bubble tea, swapping lattes for kopi c on occasion, and asking for tap water when dining out.
Image source: iStock
Save $160 a month: Eat out less often
Eating is one of Singapore’s national pastimes so this may be an unpopular opinion. But if you’re really looking to save more money, you have to make some sacrifices along the way.
An average restaurant meal can cost between $35 to $40 after GST and service charge. By dining out just one time less per week, you can save about $160 each month. You don’t have to give up trying new restaurants entirely – just make a conscious effort to dine out less often.
Who knows, you may even pick up cooking as a new hobby!
Save $100+ a month: Stop buying things you don’t need
Have a library full of games but always looking out for the next release on Steam? Or perhaps you have a closet full of clothes but just can’t seem to find anything to wear?
The next time you’re in this situation, think about whether you really need a new game or a new shirt. Chances are, you probably don’t.
A similar concept is the idea of buying things “just in case”. Who doesn’t have the odd pair of sunglasses you bought just in case you ever took that road trip to sunny California? Or the cute fur roller you picked up at Daiso although you don’t even own a pet?
It’s good to be prepared, but the truth is, most times we buy these “just in case” items because they’re on sale. We end up never finding a use for them.
Over time, such purchases can add up. Next time you feel like buying something, resist the temptation. Sleep on it for a week. If you still think you should get the item a week later, go for it. Otherwise, it’s really just an impulse buy you don’t truly need or want.
Image source: iStock
Earn more on your savings
If you can follow all the tips above, here’s how much more you can potentially save each month:
$500 + $150 +$160 + $100 = $910
In one year, that’s a solid $10,920!
This article was published on Syfe and republished on theAsianparent with permission.
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