Saving money has never been an easy thing for anyone. If you are working on a monthly salary, it becomes tougher to save money since most of us reach on payday with accumulated debts, pending bills, and so much need. Many employees in Singapore would tell you that they spend only three days with their salaries in their pockets or accounts. The rest of the month is about debts. That is a harsh life, of course, but the truth is that many people could get out of this trap if only they adopt a saving technique called a 30-day saving rule.
Have you ever heard about that? If yes, you can give us your experience at the end of the article. If you haven’t heard about the 30-day saving principle, take time to learn how to increase your savings.
Impulsive 30-Day Spending Rule
Most of us would admit that sometimes, we are tempted to make purchases based on emotions instead of sticking to our budget. You can find yourself attracted to a new item you spot in a store, or even an alluring ad on a new product or service and you are enticed to append your money on it. Not shopping based on your necessary budget would lead you to accumulate debts that you could avoid if only you shop on rightful items and time. This is what we call impulsive spending.
Impulsive spending rule teaches you to start planning about your purchase 30 days before you purchase it.
For instance, if you need a new big-screen television, write it on a piece of paper, the place you can find it, and its price. Keep that piece of paper in your drawer or under your pillow, take 30 days thinking about it as you save money for its purchase. Within those 30 days, consider if you truly need that new screen, or it would be better if you do not buy it. When the time elapses, and you found it necessary to buy it, go ahead and purchase, but if you can survive without it, save the money and not use it again. That is where the 30-day saving rule comes in handy. Is that not possible for any Singaporean?
What Is 30-Day Saving Rule?
The 30-day saving rule is a mere saving trick that one can save money for 30 days as they anticipate the importance of the item on target. For that case, as you think about purchasing within 30 days, you keep saving money. This rule is essential in increasing your saving capacity because; if you decide to buy the item, you use the money in your savings account and do so. Although the funds will no longer be in your account after making the purchase, you can enjoy the benefits of money-saving like interests. It also acts as a motivation to save more money because if you do not make the intended purchase, it will remain. Thinking about other financial and saving goals, setting aside money every 30 days would act as financial security in times of emergency or even paying for vacations.
Making It a Challenge
Do you find it hard to save your money every month? Why can’t you make a 30-day saving rule a challenge this year, 2020? From the financial experience we have encountered since the Covid-19 pandemic outbreak, many Singaporeans would tell that they are having nothing left for saving. Many people have settled for a hand-to-mouth survival trend. However, if they take the challenge, they can save a lot of money that they end up spending on unnecessary purchases. In addition to the rule, here are a few tricks that Singaporeans may find helpful in 2020;
Saving Any Spare Change
Try saving as much as you spend. On every purchase, set aside a small amount of money that can be directed to saving accounts. Every change that you get after making any purchase should be sent to your savings account. This simple trick may not look much valuable, but the value increases with time. If you check your savings account after a month, you will notice the difference.
No Eat Outs Challenge
How many days do you enjoy meals with your family? Do you like eating in restaurants, or going to happy hours a few times a week? Imagine if you cut all those eat-outs and eat more food at home. Save that money every day and visit your account after 30 days? For instance, if you like spending only $7 daily on work lunches and morning coffee, that would sum up around $210 in thirty days. This amount does not include dinner with workmates and friends twice a week, and weekend meals outside the town. Challenge yourself not to eat anything outside your home for the next 30 days and save that money.
Saving at least $500 Monthly.
Setting your goal to save $500 in 30 days means you can break that amount and see what you can keep in a week or per day. This is a perfect start off to ensure you have a regular saving habit that would increase your saving amount. Additionally, you could summarize your budget, see what you do not need, direct that money to your savings account and quickly meet your target of $500. If you find it not working on your salary, you can try outside hustles like selling items from your home and an Uber driver as a part-time job. The goal here is to ensure you consistently save $500 in 30 days.
Benefits of 30-Day Saving Rule
The technique to save for a purchase comes with numerous benefits, to cite a few;
It is a win-win game:
You either make the purchase or save the money for future emergencies.
Making the right decision:
Delaying your purchase for 30 days would give you enough time to think about the purchase and come up with a solid choice.
30 days is a long time to analyze the product and decide if it suits your quality demands. If it does not meet your requirements, you cancel the budget.
The Bottom Line
Financial decision is one of the significant decisions that any Singaporean should be keen on this 2020. Planning for your purchase in 30 days is the only trick you can use to balance your salary and savings. However, it is wise to note that the 30-day saving role does not apply if you cannot afford it. It is, therefore, advisable to make estimates on your financial capabilities before setting the target. Also, you can learn some money-saving tips from legit lenders, such as A1 Credit.