Tuesday, June 17, 2008

Saving money

Saving cash mean putting your money aside, either into your saving account or some high interest rate time-deposit account.

How much do I need to save? That will have to depend on your monthly expenses. The min. amount will be 6 months of your monthly expenses.

That mean if you spend $2500 per month for your bills and all the neccessity, then you shd have $2500 x 6 = $15000 in your saving account left untouch all the time till emergency.

If you are able to save more than it will be better. This cash will only be use in case of emergency and when you get your retenchment letter. The more you have, the longer it will last you.

You will be asking how to save when I have to pay my bill with all my paycheck? That is when you need to note down what you have been spending on.

Some of the unneccesary item that most people spend on:
1) Clothes
2) Shoes
3) Accessories
4) IT gadgets
5) Expensive Food
6) and so on.....

Many people like to buy new clothes even if they know they don't have space in their wardrobe.
That goes the same for shoes and accessories. One shirt will cost you ard $50 to $90.

As for IT Gadgets, companies (eg, Creative, Nokia, Apple, Sony Ericsson etc) will be having new items coming up every month but how much can we follow up on this new things? Don't be surprise to see that there are actually some individual who keep trading their Nokia mobile phone for a new one. After trading you will still got to pay for at least $200 for the Nokia phone that have inbuilt WIFI, camera and GPS.

There are also people who like to eat at places like foodcourt and restaurant but not our Singapore famous KOPITIAM that is around the neighbourhood. Eating at neighbourhood kopitiam will cost you ard $5, but eating at foodcourt will cost you ard $8, eating at restuarant will cost you more than $10.

If you are able to forgo the above, you will be able to save at least 5% of your monthly salary and that is excluding your bill. There are also some unnecessary bill that we can forgo the services. eg. cable TV services.

There are many other ways to saving money, and you can search for an online calculator to help you calculated the amount in the bank after 10 years.

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