The important factor is discipline. First determine how much spare cash that you may have every month after paying your utilities, loans and other financial commitments, next is to set an amount to be given to yourself every month.

Remember you are worth it, you deserve to be paid. This amount does not include the shopping or the money to pamper yourself, this amount is solely for savings, rainy days and more importantly, Investment. One cannot fight without bullets, likewise one cannot invest without capital.

Do check out the page on Financial Statement to find how much bullets (emm, money) you can save each month.

Some people will find it hard to save money, they feel that somehow they have to spend the money when they see it in their bank account. This group of people will need a tougher way of saving, sort of like a force saving.

At the same time I am not saying that you should save all your money and suddenly find that you did not enjoy your life, travel, eat nice food and buy anything for yourself. There should be a plan and a control. Know what you are saving for.

Selecting a Bank

Select a bank, open an account that is an all-in-one account (where it is a Current, Fixed Deposit and Savings account), make sure you do not want any ATM facilities for it, Internet Banking and Cheque book facility is fine. Main objective is to have an account that you can monitor, bank-in money into it every month, and not being tempted to draw out all your life savings to buy a I-Phone or other gadgets. When required to withdraw money, make it inconvenient, and you will find that you will touch the money less.

If you have a Flexi Home loan with a bank where your money in the savings account can be used to offset the Housing loan Interest, this will be most ideal. So you not only save money, you also save money from paying higher housing loan interest.


Ask yourself if you are an impulsive spender. Some people just want to have what others have or perhaps to show off that they have the latest stuff. Ask yourself if you ‘Need It’ or ‘Want It’, this will reveal the true nature of your cravings. Get a practical thinking friend (a boyfriend or husband may fit this role) to go along with you, he/she may pull you back to your senses and help you evaluate if the item is really value-for-money. Another way is to postpone your purchase, if you feel strongly the next few visits that you still need to buy it, then chances are that its not impulsive buying anymore. Happy practicing yeah!!

Credit Card

Very convenient to use, but can also be a quick way of getting bankrupt if it is not used properly. Before using a credit card to purchase something, make sure you have the cash in the bank to pay for the item. If you find yourself purchasing something where you are not able to clear the total outstanding amount (yes this includes those 0% installment purchases too), do beware.

Each month when you receive the Statement, clear up all outstanding amounts, DO NOT leave any balance. The interest on this, is the one that kills, can be even higher than housing loan interest. This is why I recommend that you only spend on what you are able to pay when the statement comes. If you are owing the credit card now, you should by all means settle this amount first, don’t even think about bullets for investment, shoot the Credit card and settle the balance first.

The advantage of Credit card is, you have a grace period of a few days before settling the amount that you spend. And also by accumulating points, rewards or vouchers, you are able to save some money from your expenditure too. Forget about getting a Credit Card just to show off to friends that you are Gold or Platinum card holder, what is the point??

Fixed Deposits (FD)

This is a safe and conventional way of saving, low risk and you are able to know how much you will have at the end of the term. So it will be easy for financial planning. The setback of this type of savings is, it is not liquid. It is difficult to withdraw your money anytime you want, and especially when your FD interest matures in 1 year time. Usually the interest rate for FD are also low compared to other Investment vehicles. The point to take note is, check the Interest of the FD, it can sometimes be lower than the inflation rate. If it is, this means your money is shrinking and not able to cope with the growing prices of necessities. In this case, reconsider where you put your savings.


Gold became a recent Savings sensation. Due to the fact the Global Economic uncertainty, Gold offers a sense of backup value when currency and stocks falls. Banks are now offering savings account which ties with the value of Gold. Some even allows it to be in other currency.

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