Inflation is eating into our savings. It is harder to make decent returns on investments. Some investments are losing money. If you are like me planning retirement and trying to live out your limited reserve, what can you do to stretch out your reserve till the end? This may sound over-simplistic but it is what I have planned to do or are now doing.
1. Take the public transport instead of driving. Driving is now very expensive. I try to move around taking MRT and public buses as far as possible. The money saved can be substantial.
2. Be conscious of usage of water and electricity. Switch off non-essential lights and power supplies connected to appliances and equipment not in use. Running water can be wasteful, so think of ways to slow the flow of water. Besides saving money, it is also environmentally right things to do.
3. Limit eating out at expensive food outlets. Seek out good hawker food and inexpensive foodcourt meals. Eating home-cooked food need not be expensive too.
4. We have stopped going to cinemas except for a special treat. Some shows and TV dramas were watched at home.
5. Buying for the wardrobe is limited to what is truly needed or for replacement reason. In any case the wardrobe has limited space and to buy more is out of question.
6. Buy items that are only essential. For example, there is no need to have many watches. If you can live with few, why not cut back.
7. Give up club memberships if you do not patronise them.
8. Consider resigning as members of some professional bodies, if you have retired. See whether these professional bodies have retired-members category and apply to downgrade.
In writing this piece, I am recommending living within one’s means and if we can save, why not do it. I am not suggesting that we do not lend a helping hand to those in need of assistance. When there is a need to be charitable and generous, do it too. There is a difference between stinginess and prudent behaviour.
Copyright © 2012, limkimtong for Living Investment
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.