As we settle into the end of the year, the chatter about high inflation is everywhere. In June 2022, Singapore’s headline consumer price index hit 6.7%, with the core inflation rate itself peaking at 4.4%. These rates are the highest they have been since the Global Financial Crisis. High inflation narrows income growth and lessens purchasing power.
Furthermore, global affairs such as the Russia-Ukraine war have continued to aggravate supply chain issues. Amidst this tumultuous backdrop, what can consumers do to reduce spending and saving money? Here, we list 6 ways that can help you out without you needing to make any drastic changes to your lifestyle.
Ascertain What are Your Needs and What are Your Wants
Our first tip is to understand the difference between needs and wants and have a list to clearly differentiate what you want from what you need. In a time like this, trimming the fat will help you out a lot in the long run. Review your current spending habits and be honest about what is essential to you, and what is not. If you cannot decide, get help from a friend. Having a discussion together may help you to gain more insights and broaden your horizons.
Take Small Steps to Reduce Your Home Utilities Bill
Small steps go a long way! Here are some small steps that can help lower your home utilities consumption.
Find Ways to be a Wise and Smart Shopper
Want to cut down your expenses? Wise and smart shopping allows you to reduce your daily expenditures without making significant cuts or changes to your lifestyle.
Review Your Insurance Needs as You Enter Different Life Stages
When did you last check your existing insurance policies against your current needs? If it has been some time, you may want to assess to see if they are optimal. There may be a need to adjust your insurance coverage if you have made a significant change to your living situation – for instance, gotten married or welcomed a new child into the family. Some policies may now be fitting for you to consider for your new circumstance, so have a look at your existing insurance policies to see if they are still adequate for you at your current life stage.
Reduce or Cut Non-Essential Expenses
Review your expenses each quarter to see if adjustments can be made. During this review, look out for any non-essential expenses where you can reduce or cut costs entirely. A helpful tip is to split your expenses into 2 categories: fixed spending, and discretionary spending. Items in your “fixed spending” list are non-negotiable and essential, such as rent, loans, and utility bills. “Discretionary spending” might include things that are nice to have but not essential, such as entertainment subscriptions.
Consider Buying Used Items in Good Condition
There are plenty of things that you can buy second-hand to save costs. These include clothes, electronics, accessories, and more. You can find these items for cheap, and in good quality, in a variety of places including physical thrift stores and online marketplaces like Carousell. If you are lucky, you might even be able to pick up items that have only been lightly used or are just like new.
Looking Ahead
Start the year right by cultivating good habits like saving and spending wisely. You can consider to begin with making some changes to your spending habits. Small cuts or adjustments go a long way, so see where you can apply these tips to your advantage.
Talk to your Financial Consultant if you’d like to discuss about this article and gain different perspectives.
This article is for informational purposes only and should not be relied upon as financial advice.