Your Daily Saving Tips (Part 2)
6. Build your passive income now for the next recession
Only in times like that, people will know the importance of having a passive income. Having passive income can come in many forms. One of the ways is to buy money producing assets such as high dividend-yielding stocks. Market prices for these stocks are very cheap now. If you have the money, it is what you should be spending on. Dividend may be cut in the future but anything above 15 % yield, IE: Reits, is decent enough to keep for passive income.
7. Shop online!
E-commerce may not be the most popular way for people to shop but it is definitely one of the ways to get the best deals. It’s especially true if you are a woman buying lingerie online. There are many online shopping sprees where customers pool their orders together and an aggregator makes the orders from the merchandiser. This way, they enjoy privileged bulk-purchase prices and share shipping costs. Prices may be 5-30 per cent cheaper. Check them out to see if you can get a bargain while at the same time get unique stuff that are not locally available.
8. Buy only what you need, don’t be upsold
Are you familiar with this phrase: “ How about a cake to go with your coffee, Sir?” Such sales tactic appears when the sales staff at the store attempts to sell you something else on top of your purchases. They are using the technique of upselling to make you buy unnecessary items, oftentimes things that give the sellers a bigger margin. Be firm if you really don’t want to buy. Remember, every dollar counts these days.
9. Review your commitments
Take a look at your monthly bill and cut recurring services if you do not use them. Magazines, Internet services, cable TV premium channels – these are common expenses that keep appearing in your bills month after month. If you don’t use them, cancel them. Having plenty of TV channels would be a waste of money if you are hardly home to watch them. Super-high-speed broadband too is often unnecessary unless you are a professional gamer or need it for work. Downgrading to a medium-speed service will save you a few precious bucks from your monthly bills.
10. Pay yourself first – 10% at least!
Search for an automatic savings plan where part of your pay will be automatically transferred to your savings account. This should clearly be the first rule in your financial planning for nothing is more important than to reward yourself after all the hard work. You work hard to reward yourself, not to pay others in the form of debt. Having such a mentality and plan in place will force you to put some money aside for rainy days such as now and for future investment purposes. This is what I called Emergency Fund which will be able to last you 3-6 months of your expenses.
As you can see, there are big choices and small choices. Some take a little sacrifice whereas some changes are not noticeable at all. The trick is to save where it doesn’t hurt. Live within your means and always control your spending. Satisfy the Needs before the Wants. Inflation will not only erode your saving but will be a burden to you if you don’t know how to hedge against it.
Nothing beats having the freedom and flexibility to spend. If that is your long-term goal, you need to start saving today.
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