So far, we have discussed in the last two parts on seeing where is the problem of being poor, even though you may be earning BIG bucks out there. By now, you should clear on where your money goes, be it paying instalments, interests to banks. Hopefully, your family is aware what you are doing and with their help, your pathway to getting cash rich should be easier. Personally, i have not found GOOD professional help yet. In Singapore, we do have "problem gambling" helps, and there are public counsellors who might be able to advise and address financial issues, and credit card issues.
So far, I had aids from KK Women and Children Hospital, and the MOE to ease my children's medical expenses and school expenditures, and I know these are only temporary. I do admit it does helps a bit, now I just have to focus on reducing my debts, and daily expenses.
1 Make Tough Decisions
a.
Those who are in businesses, be it a MLM,
traditional or modern, check and double check if your sacrifices made is
feasible. A business should be able to support itself financially with its own
income. Once YOU are supporting your business with your salary from another
job, then you should STOP that business.
b.
Start to downsize some of your expenditures,
such as having one car instead of two. If not, no car is even better.
c.
Whether to pack lunch or eat out, decisions as
such to be made and abide by it.
d.
In short-term, you may make decisions as follows
i.
What are our absolute necessities?
ii.
Who to pay first? Who can stall?
iii.
How can we reduce debt quickly?
iv.
Where can we drastically cut expenses?
v.
How long can we sustain our current lifestyle?
vi.
Do we have any assets we may want to liquidate?
e.
In long term, decision as follows:
i.
Can we afford to stay in this house?
ii.
If now, how much should we spend on housing?
Where can find housing in that price bracket?
iii.
Can wage earner finds ways to move up at work?
iv.
Is there other ways to increase income stream?
v.
Will the wage earner need additional education
or training?
vi.
Can I fund college for children?
vii.
Can I fund savings account and/or a retirement
plan?
f.
Follow the seven basic rule:
i.
Accept responsibility for your financial future
ii.
Pay yourself first
iii.
Stay fully conscious of your financial situation
iv.
Reduce spending.
v.
Earn more at your job
vi.
Generate additional income streams
vii.
Invest wisely
2 Keep Daily Financial Records
a.
List down your net monthly income and monthly
expenditure. Note that your income is the real cash you take home after all the
government deductions.
b.
Money left after deducting your expenditure will
be used to pay for your daily essentials such as groceries, petrol, snacks,
school supplies, etc.
c.
This could be tedious, but it is very effective.
d.
Separate items such as diapers, cereals, milk
from grocery bill as they made up a chunk of the bill, so it is easier to
calculate and differentiate.
e.
Compare prices and buy in bulk if a discount is
offered, this way you will reduce the number of trips you make to the
supermarket, to reduce “impulse buying”.
f.
Once you have a full month’s entry, you can
start analysing the data. It may be painful but it will get better as data
analysis is the key to solving your financial issues.
g.
This way, you can plan for all your expenses in
advance.
h.
Surrender the “Can-have” attitude.
3 Avoid Monthly-Instalment Payment Options Like
The Plague
a.
A lot of banks and stores offer those
zero-interest monthly instalment to pay for certain items. Yes, AVOID them.
b.
Doing so will bury you deeper into the debt,
unless you are able to pay out the full amount you own the bank every month.
Else, you are forgetting you are paying the interest and hence, you are paying
more for the item you buy in instalments than in full.
c.
These offers fool you into a false sense of
security because that is what they are doing. Do not be fooled because as the
saying goes: A fool and his money are soon parted.
d.
In order to save yourself from these money traps,
remember this rule of thumb: If you cannot pay the full amount right away, do
not buy! Save the money for it if it is something important and when you have
the full amount, you may find that the purchase price has gone down or you may
get a better bargain because you are paying cash. Or better still, you may
realise that you do not need the item at all!
4 Change Your Shopping Habits
a.
The cons of credits cards frequently far
outweigh the pros.
i.
Credit card issuers are constantly seeking
customers who charge beyond their means and make minimum payments carrying 10
or 30 percent interest for long period so time.
ii.
Always keep in mind that credit card issuers
make their money on interest, additional fees and annual fees.
iii.
Credit companies continues to barrage you with
offers even after you racked up debts, such as more low interest rates. These
are tempting, you must read the fine print to watch out for hidden charges. Or
best, cut them all altogether.
iv.
Stores are always trying to entice you to open
an account, sales personnels are trained to push these offers, and easy to sign
on.
v.
Game plan to reduce Debt
1.
Fund transfers offers, for transferring balances
from one card to another, gives you a false illusion that you can get your debt
under control. This is a very bad idea. There is no way to address the probe
but to tackle it head on with cash and to cease all credit card spending.
b.
Change where you shop
i.
Changing where you shop is one of the most
logical things to do. Sometimes some things are cheaper outside the shopping
centres.
ii.
In hypermarkets, impression that they offer
better price. It could be the arrangement of their products causes the impulse
buying. And methods to cause buying more than one because the second item is
offered half the price. These are few of the many tricks of the trade.
iii.
However, if you have a big family, though,
shopping at hypermarkets may not be a bad idea, as they offer items in bulk,
that’s where your financial records comes into play, as you are able to know
how much you can buy for a month.
iv.
On top of these, the lesson comes down, you have
to find out how much other stores is selling for the same item be it
supermarket or traditional provision shop. This way, it is easier for you to do
the budgeting.
c.
Pay attention to great deals and clip coupons
i.
Supermarket coupons, be it from on-line, local
newspapers or even along the supermarket aisle, can be useful.
d.
Plan your weekly consumption and write a
shopping list
i.
Planning your daily consumption for the week is
the best way to save on your grocery bill. This comes down to the number of
meals you intending to cook.
ii.
Write your shopping list.
e.
Do Not go shopping on an empty stomach
i.
When you are full, your subconscious mind tells
you I have enough. When you are hungry, it tells you I don’t have enough. I
need more, more and more. And you will put more things into the shopping cart,
buying things you really doesn't need.
f.
Change brands
i.
House brands, or even no-frills packaging can
save with very little effort.
ii.
Another trick is to examine items placed at the
bottom shelves, where most of the best priced items are placed.
g.
Clothes and accessories
i.
Make no apologies for wearing same outfit year
after year. Change only when necessary.
h.
Trim Energy Costs
i.
Energy costs are always spiralling out of
control, we can’t control prices, but you can control our consumption.
1.
Minimize laundry expenses
a.
Wash only full loads whenever possible. But do
not overfull the machine, else, when it does not comes out clean, you have to
wash it again.
b.
Wash using cold water, unless clothing is unduly
soiled.
c.
Use the correct amount of detergent.
d.
Buy house brands detergents. Leave expensive
spot sprays, use old-fashioned soap and scrub method, or dab the spot with
white vinegar and baking soda paste or with lemon juice.
e.
Wash delicates in ordinary dish soap.
f.
Consider hanging clothes outside to dry. It will
leave your laundry smell clean and fresh.
g.
Limit purchase clothes that require
dry-cleaning.
2.
Appliances
a.
Set Air-conditioner temperatures to 25 Degrees
Celsius.
b.
If possible use a fan, then air-conditioner.
c.
Replace light bulbs with fluorescents, which use
75% less energy and last ten times as long.
d.
Ask your electric and gas provides to do a audit
of your energy use if it is free of charge.
e.
Take shorter showers
3.
Travelling with vehicles
a.
Make sure your vehicle is serviced regularly
b.
Tires are fully inflated.
c.
Use cruise control on highways. This keeps
vehicle safer, steady, legal and save fuel.
d.
Join car pools.
4.
Outings without spending more
a.
Picnics in local parks or beach
b.
Play board games
c.
Go for free music, dance, or theatre
performances
d.
Watch out for free entertainments around the
city
