Make the most out of your Money

Heard this on the radio this morning. Thought that this topic/discussion came timely during this financial crisis time. Some of the pointers:

• Pay yourself first

When we received our pay check, we always pay our bills, settle loan commitments and obligations, etc. Come month end, we can only save whatever money left behind, if any.

We should pay ourselves first. Set aside a sum of money and save it in a separate bank account that we cant access ie those accounts without ATM card, wife, etc. Then, we only spend whatever left behind.

• Mineral water is more costly that fuel price

A bottle of mineral water from petrol station cost RM1.60 whereas, a bottle of fuel only cost RM1.00. As such, boil your own water, bring your water bottle and drink boiled water and not mineral water.

• Restructure your loan

Bank Negara has cut its benchmark Overnight Policy Rate (OPR) by 25 basis points from 3.50% to 3.25%. Do expect the interest on your housing loan to be lower unless your loan is on fixed rate. Settle the loan with the highest interest first or refinance housing loan for cheaper interest rate.

• Cut down on credit card spending

Most of the bankruptcy is due to credit cards debt. Spend within your mean and cut down on the number of credit cards in your wallet that made it look like its going to burst anytime. Interest free instalment scheme and balance transfer sound attractive and affordable but basically, we are spending in advance of what we can't afford now.

• Eat in more

Eating out is never cheap or healthy. Switch to sandwich and home cook meal. You can save time and money on travelling too.

• Coffee chain

Coffee chain, a place to see and to be seen. Do you know drinking a cup of coffee there is sufficient for other people's one whole day meals? There's many cheaper options for good coffee. Ask your parents for hometown roast coffee.