Tips on Saving. Common ways Money Wasted

1. Credit card Debt - Pay off your balance in full. On 1.5% interest per month, a RM1000 balance means RM180 on wasted interest payments.

2. Overspending on car - 

• i. No need for premium fuel if manufacturer's say regular is fine.
• Ensure tyres are properlerly inflated to get best mileage.
• Still changing oil every 5000km? Most models nowadays can last between 8000-12000km between oil change. Some have built in sensors to indicate oil change. Check your manual for best time for your vehicle routine maintenance.

3. Stop Smoking - Smoking costs more than just a packet of cigarettes. Costs for life and health insurance increase significantly. With various other expenses, costs add up dramatically over a lifetime. Estimated at RM586000 over a lifetime for a 24 year old.


4. Fancy cell phone - Your phone is not a status symbol. It is a tool for communication. many people use expensive fancy phones and pay too much for cell phone contracts without utilising the minutes. Evaluate your usage and find a better alternative plan that suits you better or consider a prepaid plan.


5. Buying branded stuff - From groceries to clothing to prescription drugs, by choosing a generic (off-brand), a lot of money is saved and in much cases, quality is not sacrificed. Clever packaging and fancy packaging dont make brand names better than lesser know brands.


6. Being quiet - By simply asking, you may get a lower rate on your purchase. Ask whether discount coupons are available or bargain for lower prices on seasonal or perishable items, floor models or big ticket purchases. It doesn't hurt to ask.


7. Buying drinks one at a time - If you're in the habit of buying bottled water, coffee by the cup or at the vending machine, your budget has sprung a leak. Instead drink filtered water or brew your own cuppa. Buy your bottled drinks in bulk.


8. Paying for something you can get for free - there's a load of freebies if you know where to look especially on meals, software, credit reports, tech support, etc. There are also books, music and movies at your local library for free.  


9. Over payment of taxes - If you get a refund every time, you are letting the government take too much money in taxes all year long. You can let this money work for you by putting in dividend earning accounts.

10. Being disorganised - Lost bills and receipts, forgotten tax deductions, clueless spending can cost hundreds of dollars each year. Set up an automated bill payment online for monthly bills to eliminate late fee and interest charges. get a handfull of files to organise important receipts, insurance policies, tax documents and other statements. Use a free budget software to see exactly where your money goes so that you can plan your expenditure more wisely.

11. maintaining low interest accounts - You work hard for your money, should it not work hard for you too?! If you put in traditional savings account, it earns next to nothing. Get the best returns on your money by investing in money-market funds. If your stocks or mutual funds are lagging behind their peers, its time to say goodbye. Invest in gold or other precious metals.


12. Paying late fees and missing deadlines - pay on time. Refer item (1) and (10).

13. Paying ATM fees - Expect to throw away at least RM1 everytime you use another bank's ATM.Some banks charge more for using banks not in their network.


14. Shopping without a calculator - check how much an item costs per unit of measurement. When you compare by unit price, you save. Compare a box of 40 diapers that cost RM39 against a box of 144 diapers for RM105. You save 27% by buying the 144 diapers. Off course buying more of something only saves money if you use it all. If you do not, than thats wasted money.


15. Paying for things you dont use - Do you watch all the cable channels? Do you actually need all the extra features on your phone? Are you taking full advantage of your gym, magazine, other subscriptions, etc. Take a look and adjust accordingly.

16. Not reading the fine print - Transfering the balance from a high rate credit card to a low rate one can sometimes not be the right move. Some charge 5% for balance transfers or complete earlier due payments. Read the fine print. Watch out for free checking accounts that aren't so free. Some banks charge fees unless you meet certain criteria.


17. Being a Inflexible traveller - Consider travelling before or after the peak season when prices are lower. Search for flights over a range of dates to find the lowest fare. Booking at the last minute may also save you money as hotels and airlines slash prices to fill rooms or planes.


18. Sticking to the same service provider or service plans - being loyal to your bank, insurer, credit card company, mutual fund, phone plan etc is all good and fine. But over time, prices and circumstances change. The status quo may not be the best deal anymore. Smart consumers are always on the look out for bargains.


19. Making impulse decisions - Especially so on purchases. When you buy before you think, you dont give yourself time to shop around for the best price. Take the time to compare prices, read relevant reviews and look out for coupons when appropriate.


20. Dining out frequently - This can be a huge drain on your wallet. Bring your lunch from home can save you a couple of hundred bucks each month. Consider carrying out instead of dining in. Search the web for coupons/ groupons ahead of time for dining out.

21. Trying to time the stock market - Many people do the opposite when trying to buy low and sell high. Employ the simple strategy of dollar cost averaging by investing a fixed amount at regular intervals. You smooth out the ups and downs of the market over time. If you take out the emotion and guesswork, investing can become less stressful, less wastefull and more successfull.

22. Buying insurance you dont need - You only need life insurance if someone is dependant upon you such as a child. That means most singles, seniors or kids dont need a policy. Others that you dont need include credit card insurance (use that to pay your debt), auto rental insurance( most credit card or auto policies carry some coverage), mortgage life insurance and accidental death insurance( a regular life term insurance policy will do the trick). However, a medical card is will be very handy in not draining your hard earned monies by deflecting high medical bills.


23. Buying new instead of used - cars loose 20% of their value once driven off the lot and 65% in the first 5 years. Used models can be a real value because you get a car that's still in fine working condition for a fraction of a new car price. Apart from that, consider the savings on pre-owned books, toys, exercise equipment and furniture. Some things you are better off buying new like mattresses, clothes, linens, shoes, safety equipment like bike helmet, etc.

24. Procrastinating - Time is an asset money cant buy. Start investing for retirement as soon as possible. If a 40 year old saves RM300 per month with a 8% return per year, he'll have RM287000 by age 65. If he had started at age 25, he would have more than RM1 million. 

25. Save on electricity/ water - say no to unattended televison, use a ceiling fan instead of air cond, cut down on water heater as this unit consumes high electricity, use energy saver bulbs, dont treat your refrigerator like your cupboard with stuffing/opening closing as you wish, switch off anything not in use.Use a low flow shower head, install low water flushes or put a brick in your flusher water tank, wash car using pails of water instead of water hose or use collected rain water, consider drip system for watering plants, etc.