We all know savings are important, whether it is for an emergency, in case we lose our jobs, or just for retirement. However, many people these days end up living paycheck to paycheck, with no leftovers to even last them through the month. There are plenty of ways out there to help you save money like the "50/30/20 Method" or the "Pay Yourself First" concept. Today, we're sharing with you 5 ways that are way more fun than the aforementioned methods and you'll have more fun the more you're saving!
1. Keep A Certain Currency
This method is applicable if you still use cash. For e-wallet and credit card buffs, you can go ahead and skip this. The task is easy, choose a currency (RM 1 & RM 5 suggested) and whenever it appears in your life, stash it away in a drawer or box at home. Resist the urge to spend it even if it's in your wallet. (I've lost count of how many times I paid with RM 10 for something less than RM 5). The fun part about this is, since you don't always get change, you might not be saving everyday so it doesn't feel like a chore. Plus, you'll be pleasantly surprised at the end of the year when you start counting it and realise there seems to be a few hundred ringgits for close to no effort at all!
2. Coin Bottles Race
Again, this method only works if there are cash transactions and you get some spare change. Start off by finding 3 empty containers (it's better if they're transparent containers) and label them for each denominator - 10 cents, 20 cents, and 50 cents (since we don't get a lot of 5 cents these days, you can just throw them into the 10 cents bottle. Then, every single day (even if you're going to wear the same pants the next day), empty out your pockets and fill the containers accordingly. As you're filling them up, you can see a "race" happening to see which container fills up first!
3. 365 Savings Method
This method has been popularized lately and it's very simple to understand. 365 is the number of days in a year and you'll start by saving RM 0.10 on day 1, RM 0.20 on day 2, RM 0.30 on day 3 and so on, ending at RM 36.4 on day 364 and RM 36.5 on the final day. By starting small and slowly increasing, you'll be able to build up a momentum for saving. Plus, it will train your mind to start thinking about how you're going to save up for the last couple of days where you'll be saving more than RM300 daily! If you fail, just remember there is no shame in starting back at RM 1 and try to build up that momentum again instead of continuing from where you stopped. You might be surprised to learn that if you do succeed, you'll have a whopping RM 6679.50!
*When you start earning a little more, you can consider going on to the next level by saving RM 10 on Week 1, RM 20 on Week 2, up until RM 520 on Week 52, which amounts to RM 13780 in a year! The final boss level is when you can do the 365 savings method starting from RM 1, which will give you RM 66795 a year!
4. Self-Installment
These days, with or without credit cards, we have plenty of options to pay for our things in installments - splitting up the cost over a certain amount of time instead of paying a large sum upfront. This is a bear trap that many people fall into as it makes it easier for people to spend. By using the self-installment method, whenever you have the urge to buy something, divide the cost into 3 months, and "pay yourself" the "installments". After 3 months, you'll most likely realize that you did not need that thing anyway and you'll have extra savings. If you still happen to want whatever it is, you can safely buy it without causing a huge dent in your bank account!
5. Move The Goalpost
The last method requires you to start by setting a small, very achievable goal, like a dress that you have your eyes on. Save up (whether weekly or monthly) the price of the dress. The key point here is to save up that amount, so even if you know you can afford it already, save it up until you reach that goal. Next, tell yourself "if I use this money to buy a more expensive item (say...a lipstick), I'm already one-third of the way there, why not I save up for that instead?" As you reach your second goal, repeat this practice again, with each goal getting more and more expensive. Sooner or later, you'll realized that you've already saved up for a vacation to another country or a luxury handbag! To add a little twist, every time you reach a goal, take 10% of the saved money to treat yourself to a snack. Eventually, the snack will turn into a full meal and maybe even a buffet (and you'll still have plenty of savings for the next goal!)
It's not to say that you can only choose 1 or 2 of these methods to practice. If you think you're up for it, you can start all 5 of these "missions" together! Just know that all of these methods require plenty of self-discipline and self-awareness. Remember to be patient as a respectable savings amount does not happen overnight, but after a year, you'll thank us! If you would like your savings to grow even bigger by itself, consider a high yield savings account or a goal-based app like Stashaway!
*If you want to sign up for Stashaway, you can waive your fees for the first 3 months by signing up here.
