WHAT goes up and never comes down? Besides your age, the price of goods and services is a possible answer too!
In fact, of late there has been much talk about rising food and fuel prices all over the world. With prices going up and income remaining relatively stagnant, it’s important that we learn to be prudent.
What being prudent means
Ask our forefathers and, most often than not, they would tell us that their lifestyle was synonymous to this word.
Today, we may be earning much more, but we seem constantly short of cash, what more saving any. This is not surprising because in those good old days you could buy a bowl of noodles for five sen, whereas today even a beggar would ignore a five sen coin dropped into his bowl!
Being prudent or frugal simply means managing in order to save. It means getting the most for your money. Those who are prudent constantly find ways to save time, money and energy. It doesn’t mean being a “cheapo” (stingy) or “kiam siap”, as the Hokkiens call it.
How can I practise prudence?
There are many ways to live on less money. Here are some suggestions:
• Reduce your daily expenses: Before you buy anything, ask yourself:
1. Do I really need this?
2. Can I get it cheaper somewhere else?
3. Can I get it for free?
• Cut something big out of your budget: Go without a car (ouch!) and save on petrol, repairs, road tax, insurance and toll charges. Or for something a little less harsh, try scaling down on your car type and go for lower-capacity vehicles.
• Use less: Switch to energy-saving light bulbs, cut down on the use of air-conditioners, wash only full loads of laundry, dry clothes in the sun instead of using a drying machine, and turn off all electrical appliances when not in use.
• Reduce waste: Use paper on both sides or go paperless whenever possible, and use cloth diapers instead of disposables.
• Reuse or recycle: Compost your wastes wherever possible and use to fertilise your vegetables and plants, and turn your trash into cash!
• Make things last longer: Mend clothing, re-glue shoes and fix things before they’re beyond repair.
• Find new uses for old things: Paint old furniture, make quilts from old clothes, and convert old, large tables into desks. In other words, recycle, recycle, recycle!
• Find cheaper substitutes: Buy generic brands, shop at garage sales, and rent instead of buy.
Creative ways
You can also be frugal by taking care of your needs in creative ways, by sharing with others and buying using community resources. Here are some other ways to save:
• Find free or cheap entertainment (we’ll discuss more about this later)
• Share big purchases: Sharing can help you get what you need for less money.
For example, you may share a ladder, drill or vacuum cleaner with your neighbours, or share your children’s toys with friends and family members. Car pooling is another example.
• Trade or barter for services or products: Yes, we’re living in a modern world, but who says we can’t practise bartering? If you can give a good haircut and your friend bakes, trade your skills. Both get what each needs and save money in the process. Now, think about your skills, the things you enjoy, the things you do well. Next, think about the skills and talents of your friends, family and neighbours. Ask if anyone wants to trade. Start with something simple and see how it works. Who knows, you may someday create another eBay!
Saving on entertainment
This is one area where we spend quite a lot without realising. But it’s still possible to get good wholesome entertainment for free, or at least almost free.
No matter what your income, make time to relax and enjoy yourself (after all, you only live once!). It’s probably even more important when you don’t have a lot of money. Without fun, it’s hard to lead a healthy life.
Here are some suggestions:
• Borrow books or attend free seminars or programmes at the public library.
• Instead of going to the cinema, rent a video.
• Try making your own kacang putih and cookies.
• Visit the museum, zoo or park and enjoy the fresh air (depending on where you are!).
• Look out for free concerts, kid’s programmes and family activities from the newspaper or through tourist information centres or websites.
• Take an inexpensive class through community education, learn a new craft, or revive an old interest. You may even turn that hobby into a business.
• Attend free book readings for adults and kids at the local bookstore or library.
• Walk, hike or bike to explore something new or visit a favourite place.
• Watch the sun rise and set, find constellations in the sky, or start a project with your family such as planting a tree (durian or mango trees are perfect as these will help you save money on fruit).
• How about people watching? Sit in the park or mall and just observe what people do, how they walk, talk and laugh, and how some parents communicate with their kids.
Conclusion
Living on less money doesn’t necessarily mean living any less. It’s more about living our lives more abundantly and purposefully and not merely living for others.
Being prudent in all aspects of our lives is the cornerstone of wealth building. If you hope to be financially free someday, you’ll need to make prudent financial management a way of life, no matter what your income level or status.
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