Money: Creative ways to be frugal

WE previously discussed some extreme measures on how to manage your food and clothing expenses. This week, we suggest ways to manage your transportation, utilities and entertainment/lifestyle costs.

Let us reiterate the importance of being frugal. It plays a significant part in helping you cope in extreme times, but it doesn’t mean you should deprive yourself of the good things in life. It’s about being more creative with your spending. To quote Amy Dacyczyn, “Frugality without creativity is deprivation!” Transportation We no longer use our legs as much as our ancestors as there are various modes of transportation today. So much so, most of us can’t live without a car! A car may be necessary but with the rising cost of petrol, we may have to look for alternatives. Suggestions: • Get rid of your car and get a bicycle! Too extreme? Perhaps, but we need to overcome your reliance on a car. For instance, if you want to get a newspaper or buy food from a stall down the road, try cycling.

• Use public transport. We may not have a world-class public transportation system, but it’s still the cheapest alternative. If you live in the Klang Valley, you can get around the city from as little as RM1. If you were to use the bus and the Light Rail Transit, the most you will pay is RM7 a day. • Drive efficiently. You can find smart driving tips on the Internet. For example, accelerating quickly and speeding consumes more fuel. How and when you fill up your tank also makes a difference.

• Try not to use your car at least once a week. You will not only save money, but also do your part for the environment. Utilities Our country is blessed with natural resources, but that doesn’t mean that we should be wasteful. We should inculcate the habit of conserving energy and preserving our resources for future generations. We can do this by: • Turning off all lights, fans and air-conditioners when you leave a room. • Converting your lights and electrical appliances to energy-saving types. For example, instead of using an electric kettle, it may be better to use a conventional one. • Using rainwater to wash your car and water the plants. Also try to bathe using one pail of water and brush your teeth with one cup of water. Challenge your family members to see who uses the least amount of water.

• Limiting your phone usage. It might be a good idea to switch to a package that offers unlimited calls. If you’re using a mobile, either go for prepaid or have your service provider restrict your outgoing calls if it exceeds a certain limit.

• Sharing your Internet/broadband usage, say, with your neighbour and splitting the cost. You can also do the same for your newspaper subscription. This will not only help you save money, but also promote good neighbourliness. Entertainment/lifestyle It’s possible to get good wholesome entertainment for free or almost free if you’re resourceful and creative. Just because times are bad doesn’t mean you can’t have fun. No matter what your income, make time to relax and do activities that you like. Without fun, it’s hard to lead a healthy life. Suggestions: • Give up your fitness club membership if you’re not using it regularly. Instead, take a stroll in the park, hike or bike and enjoy the fresh air.

• Borrow books or attend seminars or programmes for free at the public library. You can also attend free book readings at your local bookstore. • Check out free concerts, children’s programmes and family activities in newspapers or through tourist information centres or websites.

• If you drink or smoke, now is a good time to fulfil your New Year’s resolutions. Cut down on your consumption and eventually kick that habit. You’ll be surprised how much money you’ll save. • Want to catch the latest movie? Borrow or rent it from friends or your local video store. You can enjoy it with your family and friends in the comfort of your living room.

As we have said before, extreme times call for extreme measures, and what better time than now to re-examine our spending. Refocus our priorities and remind ourselves that we’re merely stewards of all the resources that we have been entrusted with. Use them responsibly for the benefit of generations to come.

AKPK is an agency set up by Bank Negara Malaysia to provide free services of financial education, counselling and debt management programme. Call 1 800 88 2575, or visit www.akpk.org.my or www.speaksens.com.my. Get Money Sense and Celik Wang books and keep a lookout for the Mandarin version at all of its 11 offices nationwide.

*Taken from NST Online

Money: Spend within your means

HAVE you noticed lately that the meter on the petrol pump would keep running even after the RM100 mark? Have you noticed the new price tags plastered onto old ones at your favourite mamak stall or kopitiam? Have you noticed that your bills seem to be higher these days but not your pay cheque?

Welcome to the era of “High Cost of Living”! While all is not gloom and doom, it’s imperative that we watch our spending. This week, we will look at your food and clothing bills.Be frugal This simply means getting the most value out of your money. To do that, ask yourself: • Do I need this? Can I delay having it? • Can I get a less expensive alternative? • Can I get it for free? Until we seriously look into this, we’re in for a hard time coping with the higher cost of living. Food bills Fine dining, all-you-can-eat buffet, fast food or home-cooked meal. You can choose the kind of food to consume. Plan your food budget and take drastic measures if you must to keep on track. Some suggestions to cut down on your food bills: • “Eat breakfast like a king, lunch like a prince, and dinner like a pauper!” — there’s wisdom in that. Breakfast is the most important meal of the day and usually the least expensive. If you have a wholesome breakfast, you won’t need to snack in between and save some money. And lunch is normally cheaper than dinner as many eateries offer special lunch deals. • Bring your own drinks. Do you realise that drinks can cost as much as a third of your main meal? This means that for every three meals, you could have one free meal. So why not start bringing your teh tarik, kopi-o or sky juice (plain water)? Note: Check if the shop charges a fee if you bring your drinks. And if you need to order a drink, make sure it comes with free refills.

• Pack your lunch. Most working people don’t have the luxury to head home for lunch, but you can pack lunch from home. It’s cheaper and healthier. • Many families eat out during weekends, but make it an exception rather than a rule. Eat at home if possible, and make it a fun-filled family event. Children can help prepare the food, Mum can do the cooking and Dad can wash up. Be creative and experiment with new recipes. For instance, you can bake a cake for your child’s birthday using natural ingredients instead of food colouring. This is not only healthier and cheaper, but can also bring the family closer. • Never over-indulge yourself. For some of us, we have to change our life’s philosophy from “live to eat” to “eat to live”.

• Never waste food. Perhaps we should try fasting once a week since this is good to both our pockets and soul. Clothing bills Today, there are many styles to choose from. Prices can range from a few ringgit to tens of thousands, and this is where you have to exercise your discretion. Some think what they wear defines who they are in society, so they go for the newest fashion trends even though they may be struggling to maintain their lifestyle. There’s an apt Malay saying that goes, “Ukurlah baju di badan sendiri”, which simply means we have to live within our means. Some suggestions on how to save on clothing bills: • Go for off-season clothing or buy them at a bargain. • Buy factory overruns. This is where you can buy branded clothing at regular prices. • Buy in-house brands, which are cheaper than premium brands. Of course, quality may differ, but you need to ask yourself if it’s worthwhile paying for one piece of premium branded clothing when you can buy 10 regular ones. • When was the last time you went through your wardrobe? Just browse through your clothes and you may discover that you have not worn many of them for ages. They are as good as new and some thought to be old-fashioned could be “in” now. If you find that you won’t be wearing some of them, sell them at a garage sale or donate them to charity.

*Taken from NST Online

Money: Living more on less

A prudent lifestyle does not mean having to sacrifice the finer things in life

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.

*Taken from NST Online