Good advice. Also, in times like this, giving to others is something that I am trying to do.

Watch movies on original DVDs for free from PLAY! You just need to register at any of its self-service kiosk. Registration is free.
http://www.play.com.sg/play_news.php#freeMovie

The above is not an advertisement. Personally, I rent DVDs from PLAY! instead of watching movies at the theatres as a cost cutting measure. In addition, I usually surf the internet for entertainment instead of paying for cable TV. Get your news from the internet instead of buying newspapers. MSM news is pretty much propaganda anyway.

Agree about not buying a car. It is a cash burner. Also agree with the other points raised. Btw, instead of buying, reading and throwing magazines regularly, one can borrow older issues from the library.

Buying fresh food and cooking at home saves money. Buy only what one is going to use for the week. Avoid buying snacks. It not only saves money, but is also healthier.

Self-reading one’s gas, water and electricity meter on a regular basis also helps. It makes one more aware of one’s utility usage and limit it when necessary. E.g. Switch on fan instead of aircon.

Checking the bus-fare stages is also useful if you take bus regularly. Sometimes the bus-fare stage jumps between 2 nearby bus-stops, so one can save some money by boarding/alighting at the bus-stop that costs less.

Limit one’s credit card expenditure by giving oneself a monthly signing limit and/or restricting the types of products/services one would sign for. Get a piggy bank. Every time one sign for payment via credit card, put the same amount in cash into the piggy bank. It would make the cash outflow of signing on a credit card more trackable.

Lastly, set a target amount to be saved every month. Transfer that fixed amount into a separate “savings only” account upon receiving one’s monthly salary. Avoid accessing the savings account.

p.s.

“We have since decided not to take any bank loan from any home purchase in future but rather spend within our budget.”

I took the above strategy and paid up for my HDB in full upon purchase. It took a lot to resist the social pressure and temptation to buy a condo because “you can afford it with the bank loans”. As it turned out, I lost my job not long after my home purchase. Lucky for me, no worries over home mortgage.

Limit one’s credit card expenditure by giving oneself a monthly signing limit and/or restricting the types of products/services one would sign for. – Belt Tightener (#2)

Nice suggestions but I recommend to avoid using credit card at all. Spend what you have and not spend what you don’t have.

#3 smallvice585

Actually sometimes it is better to sign with credit card because one can get discounts or rebates.

Agree with your “Spend what you have and not spend what you don’t have” motto. That’s where the piggy bank comes in. If one don’t have cash to put into the piggy bank for the intended credit card purchase, then one cannot afford the purchase. At the end of the month, take the cash from the piggy bank to pay the credit card bill in full. Of course, the piggy bank approach will not work for the impulsive buyer.

It is important to pay in full. My understanding (may be wrong) is that banks charge interest on the full amount even if one make partial payment. That is, if the credit card bill is $80, and the minimum sum of $50 is paid, the interest charge is based on x% of $80 total! Not just x% on the outstanding sum of $30.

Finally, read one’s credit card bill carefully for any charges by the bank. Bank often charged credit card renewal fees automatically. If one can live without the credit card, call up the customer service and ask to cancel the card without paying the fee. If you’re their target customer, they will automatically refund you the renewal fees and re-new your card for free.

If you have enough credit card or reward points for redemption, it is a good idea in lean times to redeem cash rebate or items that are part of your regular expense. For example, one can redeem Starhub MaxOnline points to pay for Starhub mobile phone bill.

yeah.. another satisfied customer of PLAY! too.

going to the movies in SG is only for those who are too rich.

another cost cutting suggestion is to have a family outing cum shopping day in JB instead of SG. Movies over there are half price for the same quality. Only issue is that subtitles are usually in Malay. but for Chinese movies, they have both Malay and English subtitles.

Food is also cheaper, typically 30% off. Sometimes, even less than half price, depending on what u eat. Go easy on the general shopping though, unless you know the prices vs local prices. Not everything is cheaper over there, in fact, if u look around some stuff can be much more expensive than sale prices in SG. In any case, if the objective is to save $, don’t end up spending more by buying too much stuff even if it’s cheap!

Be smart and be “adventurous”, u can get a better deal if u look, and are willing to venture ;)

Belt tightener,

some people have discipline issues with credit cards. But ur advice is sound, for those who exploit the credit cards to the fullest for rebates, and who do not use it as a ticket to credit.

For those with gambling issues or overspending, it’s better not to have such a temptation around. I’d go so far as to say, let the spouse manage his or her finances.

credit cards are a must have for those who own cars, though.. Due to the savings at the pumps =P.

Hi I think credit cards is ok if we can pay off the bills promptly.

However if we snowball and accumulate our bills, it becomes a frightening debt that may blow on us.

As credit cards also carry a 24 percent interest rate it is almost like a legal loan shark actually.

I have being paying alot of interest all those years when I have to owe them the principal. By paying the minimum sum, I don’t pay off alot of the prinicpal which carries interest.

For me, now I only have one credit card which I use for overseas purchases and trying to pay them off by the end of the month if possible.

Thanks.

Fantastic advise Gilbert. Once again, thanks for another well thought out piece. Thanks also to Belt tightener for the added comments. Very good indeed.

As for the point on credit card, I find it better to use a debit card instead. You cannot purchse an item that exceeds the amount you have in your debit card.

For credit cards, I always make it a point never to pay only the minimun sum. Pay in full. This will require prudent spending habit and keeping track of the minutest details of your spending. We tend to overlook this when using the card indiscriminately.

Migrate to a cheaper country. That is what I did. I became a farmer.

Life is richer for me in a LDC.
.
I live in a village and I know many people. Life is never lonely as I interact all the time.

I used to live in a typical HDB flat and my neighbours shut their doors and life is like living in a hell-hole.

I like the locals here and I learn the local language and can communicate at the local level. Can spin many jokes in it too.

I just wonder what is so great about Singapore’s first world status. I have seen it all after having lived in NZ, Sweden and England.

Bonnie

I have 5 credit cards but I never use the credit in the last 30 years. i just use the cards as a mode of payment for security and enjoy the rebates.If u are disciplined enough, using credit cards have many benefits.

Very good advices and tips. I had done many of the measures you had outlined above. Although I had some saving, I had restrained myself from touching it. It is intended for essentials like bills that had to be paid or else. Day to Day expenditure, is limited to what we set aside for. If we run out before the next pay day, we just go without it. It is tough but essential measures during tough time. Financial discipline is sorely needed in time like this if one is to prevent one from getting deeper into serious financial woes. The state will show no mercy if one have arrear of 3 months on the HDB flat or say the electric bill. We all have read and heard story of unfortunate family who were trown out into the street by HDB or their electric was cut for failure to pay on time. Tough time need tough measures.

I owned many cards, just sharing my experience of my perceived benefits for the respective cards:

1. UOB SingTel card – Rebate for all SingTel bills depending on amount spent. Min 0.5%. 1% for $50 – <$100, etc.
2. HSBC Metro, OCBC Taekashimaya, BHG, etc – these shopping malls gives 20% discount every month (subscribe to the SMS update to understand when a promo is on so as to decide when is the right time to spend – use it mainly for gifts for my children's birthday)
3. POSB Everyday – Carrefour – 5% (quite a number of items is cheaper than NTUC)
4. POSB Everyday – PUB bills – 1% rebate
5. Shengsiong Diner's Club card – if you have one nearby, the 5% on the spot rebate itself will worth it.
6. Manhattan card – 5% if you spent above $3000 for that month (rebate every quarter – capped at $300 per quarter – not worth mentioning if you spent below $3000) – no reward points though.

My rule of thumb:
1. Try to consolidate all your general spending in one card so that you can claims the points for vouchers or rebates. Some cards like HSBC allows you to have cash deducted off the bills when you have sufficient points. Nonetheless, personally speaking Citibank Credit cards gives one of the best returns in terms of points redemption.
2. Always ask which cards got promo or rebates before paying bills… no need to feel shy, people get better off starting from being thrifty, that's the basic on wealth accumulation.
3. Never buy "big ticket" item – luxury goods (e.g. toys, clothings, watches, jewellery, etc) unless there is a "discount" or "promo"
4. Look out for warehouse sales.

PS: Credit card is not meant for people that are not disciplined in tracking their spending; i.e. if you never bother to track your spending and have no intention to start tracking… my advice to you is "don't ever think of owning more than 1 credit card" and even the 1 card is for emergency; i.e. you have not have enough cash on you.