One powerful way to save money is to reduce expenses. There are various ways you can save money and avoid feeling "too extravagant" at the end of the month. The following steps require planning and investigation, but are worth a try. Others can be applied immediately. Some require a small investment, but pay off significantly in the long run. Your ability to implement these steps will depend on the availability of funds and budget.
Step
Part 1 of 10: What's Your Money For?
Step 1. Learn what you're spending your money on
What your first needs are can give you a clear picture of where your money is going, then you can figure out how to cut excess spending and lower the cost of living needed. Always remember that the issue is not simply choosing something cheaper, it's about efficiency. Analyze your needs and make calculations. Most importantly, understand that reducing expenses is a lifestyle and mindset change. Don't ever think that pennies are meaningless.
Step 2. Decide where you spend your money
If you don't know where your money is going, chances are you're spending too much money. You can collect solid data over the course of a month and as you proceed, you'll see patterns develop and be able to handle them. Write down everything you buy down to the last penny. Do not stop only until the expenses are clear, such as house rent, utilities, fuel and food. Include additional purchases such as soft drinks and snacks as well as chewing gum or cigarettes. Use a cash book with rows and columns, spreadsheets, or other applications to track expenses each month. If you use a debit card for shopping, the bank will do it for you.
Part 2 of 10: Limiting Excess Spend
Step 1. Get rid of unnecessary routine purchases immediately
While not a huge savings, this step is important and easy. Is stopping by a coffee shop on your way to work necessary? How important is the three cans of soft drink or snack you buy every day from a vending machine for 10,000 IDR each? Coffee that you make at home costs only Rp.2,500-Rp.5,000, and soft drinks in large bottles per liter are also cheaper. Do you really need to rent all those films (and pay late fees) every month? Have you checked the library to see if they rent movies, or calculate the cost if you switch to Netflix or Iflix? Sending all those raffle tickets…and your odds of luck based on the astrology. All of these can reduce expenses quickly and are mostly just a habit. You may experience some psychological pain at first, but if you count all the money you spend, you can see a big difference right away.
Make a shopping list before going to the supermarket and stick to it. A shopping list will be very helpful especially for impulsive shoppers. Do you go to the supermarket to buy a kilo of eggs and come out with a bag of 15 items. Do you need 2 bags of marshmallows at the lure of one price or a jumbo sized box of cereal just for a discount? No. You may not need all those extra purchases, but end up buying them anyway. A shopping list gives you a clear picture of what is needed and gets rid of unnecessary purchases
Part 3 of 10: Cutting Utility Expenditures
Step 1. Handle expenses for utilities
-
Heating and cooling (gas or electric): If your home has a thermostat, set it to after “away”. Don't set it too far from a comfortable temperature as it will take a long time to get back to a comfortable temperature when you get home: 18 °C in cold weather and 27 °C in hot weather may be a reasonable benchmark. The programmable thermostat will do this automatically.
- Take the time to set the thermostat before heating or cooling is needed, for example in the pre-dawn hours so that you can wake up to a comfortable temperature and in the afternoon to greet you when you return home, and immediately reduce heating or cooling when needed.
- Consider buying a hanging fan. You can already get a decent hanging fan for IDR 200,000 and a fan can drastically reduce heating and cooling costs by distributing air more efficiently. However, if your expenses are low, and you don't intend to stay in your current place for too long, you may not be saving enough to buy a fan. Also, consider electric blankets and mattress pads.
- Electricity: Lighting is expensive. When you leave the room, turn off the lights. The idea that turning on a light requires more electricity than leaving it on is wrong because turning on a light only requires as much electricity as it takes to turn it on for a fraction of a second. Energy-saving light bulbs can be an option. Even though they are expensive, you will benefit over time as there are significant electricity savings. (This energy counter can help). Turn off the computer/laptop when not in use because (probably) the reason you leave it on is convenience. Voltage adapters (including those built into stereo components) use electricity, even if they are not charged or plugged into the device. Of the total energy used to run household appliances, 40 percent is spent when the equipment is turned off. You can unplug the power cord when the appliance is not in use or purchase a device that can do it for you, such as a Smart Power Strip (around Rp. 140,000). If you have a digital crib, connect the TV to it, and set the box to turn off the power outlet when it is turned off. For stereo components, plug them all into a power bar that can be easily turned off when not in use. Open the curtains during the day to get some light instead of wasting electricity. Use electricity only when needed. Clean the radiator behind the refrigerator if it is dirty. A clean radiator will increase the efficiency of one of these household appliances that consume quite a lot of electricity.
- Water: Save water, save money. Purchase a shower-reduction kit (shower-reduction kit). The price is not expensive and will immediately save expenses. This tool works by reducing the flow of water to the shower head and the change is almost imperceptible. Learn to shorten bath time, egg timer can be a cheap solution to help you. Repair leaky toilets and faucets because they consume a lot of water and energy and are easy to repair. Minimize the use of water for watering plants. If you have a swimming pool, cover it when not in use to reduce evaporation. Also, if you are exposed to the sun, evaporation will increase drastically (heat the pool only to prevent the water from getting too cold, and buy a thermal blanket). Turn off the faucet when not in use, for example when brushing your teeth do not leave the faucet on. Don't buy bottled water, except in rare and unusual situations; Excess chlorine can be removed from tap water by storing the water in a container and refrigerating it for a few hours, and the fluoride in tap water makes teeth stronger while reducing dental problems and dentist bills.
- Gas and others: Wash clothes as often as needed, but as little as possible. For many people this step is fun. Lower the temperature of the hot water by a few degrees while showering; The lighter the water heater works, the more savings. Also, make sure the water heater's thermostat is as low as possible, but still practical. A temperature of 48 °C is often recommended to minimize electricity consumption and risk of fire. (Turn off the power before opening the panel to make adjustments). Use the microwave, instead of the oven, if possible. The cost of heating the oven is much higher than the cost of cooking food in the microwave. Open windows when the weather is pleasant outside to reduce heating (and cooling) costs. Find out whether PGN gas services are available in the area where you live. Although PGN's gas installation costs are quite expensive (around Rp. 4 million), the monthly fee is relatively cheap, which is Rp. 40,000. If you use 12 kg LPG gas, you have to spend around IDR 150,000 for one cylinder. In the long term, the use of PGN gas will significantly reduce expenditures.
- Cable TV and telephones: Do you need thousands of channels and all the premium channels available, including high definition plans? You can save on monthly subscription fees by watching TV online for free, and save a lot of money while avoiding time-wasting ads and prompting you to make unnecessary purchases by renting DVDs, for example through DVD rental services or by mail order from companies like Netflix. However, if you want to subscribe to cable TV, it may be cheaper to choose a plan that offers both cable TV service and internet instead of paying for internet only. If you want to save money, think carefully about your priorities. For phones, look for a package that fits your needs. If you make a lot of long-distance calls to contact family and friends, the unlimited plan might save you more. If you only make local calls, your needs may be met with the basic plan. Consider that your mobile phone may provide a free long-distance connection. That way, you don't have to make long distance calls via landlines. Look for Voice-Over-IP (telephone connection via internet) option as your communication solution. Some services, such as Skype, gChat (from Google), and Windows Live! allows you to make free video calls with other users and make calls to mobile phones and landlines at low cost from your computer, including international calls. Other VoIP services, such as Vonage, are not available to DSL users, who are connected to landlines.
- Cell phones: Text messages are expensive. "No problem, I have unlimited text facility!" Really? How much do you have to pay for that option? Do you really need a cell phone? Does everyone in your family need a cell phone? Parents should make rules for cell phone use. Another thing to consider is if you need a cell phone, do you also need a landline? Consider consolidation. If you only use your phone occasionally, consider a “pay as you use” plan. However, keep in mind that cheap unlimited data and navigation plans sometimes save money by allowing instant price comparisons and quality checks.
- Cell phone savings plans: Some of the plans offered by mobile carriers are really good and save money, but make sure you compare what's on offer first to get the plan that best suits your needs. Many companies offer prepaid or postpaid packages according to the user's calling habits, for example whether he texts more or prefers direct calls. For example, some carriers give you a bonus of hundreds of free sms if you top up every month, which proves to be more useful and much cheaper than calling. Remember, calls to other mobile carrier networks, and landlines, are often more expensive. Avoid the “pitfalls” in cell phone service plans, such as very large per-kilobit or per-text capacities, often to a certain extent. Look for packages that offer cheap overage charges, if any. For example, many mobile operators offer unlimited data plans.
Step 2. Use sunlight
There are several cheap solar lamps on the market that can meet your lighting needs well. There are also solar lights that are more expensive and have other functions. Most importantly, solar lights work just as well and are as bright as lights that run on electricity and you can leave them on all night and recharge during the day when you're ready.
Part 4 of 10: Cutting Expenditures on Vehicles
Step 1. Reconsider fuel and other costs for vehicles
When gasoline was rationed during World War II, the popular slogan was “Is this trip necessary?” Ask the same question every time you get in the car.
- Make a shopping list before going to the convenience store so you don't have to go back and forth.
- Don't drive a car for fun. It's a good idea to go for a walk or choose another form of entertainment (for example, reading or exercising).
Step 2. Check the tire pressure
Convertibles (cars with a roof that folds automatically) get more mileage with the roof attached (although mileage has to be sacrificed a mile or two per liter by folding the roof, it's cheap entertainment, assuming one has spent enough extra cash). a lot to buy a convertible. An engine that doesn't work properly is a huge waste, even changing spark plugs can make a big difference because it cleans the oil. Also, the less you drive the car, the less often you'll have to change tires, oil, or require maintenance Of course, the savings come over time, but they are quite significant.
Step 3. Use the vehicle smartly
Another way to save fuel (and money) is to change your driving habits. By driving slower, or less aggressively, you can save quite a bit of money (count yourself on this website). Take care to avoid traffic jams, which can be stressful and unprofitable over using public transport, and avoid expensive parking lots. Online public transport routes and schedules, and often provided by transport operators, can be a good alternative in urban areas.
Part 5 of 10: Reducing Entertainment and Fashion Costs
Step 1. Cut down on entertainment
It's surprising to see so many people moaning about money, but then talking about new movie releases plus spending on popcorn in theaters. Plus, a professional sporting event, music concert, or show ticket can cost hundreds of thousands, even millions, for a dating couple. It's a serious question, can you tell the difference (with your eyes closed) between a bottle of wine costing IDR 400,000 and IDR 140,000? If you're going out for dinner, think about the prices on the menu first. Consider sharing a meal if the restaurant offers that option. Never order expensive food through a delivery service because you only get to enjoy the food, but it's not a nice atmosphere if you cook yourself, which is certainly much cheaper. Look for cheap vacation packages. Consider taking the kids camping instead of going to an expensive theme park.
Most people, except for serious athletes, actors and musicians (depending on the circumstances) can't tell the difference between a great show and a good one. If they could, most people would enjoy having more variety and frequency. Enjoy non-prestigious local school and college intercollegiate sports competitions, performances and orchestras hosted by the community in comfort, without spending a fortune (and you can get usually good and cheap food nearby), while socializing and contributing to community spirit by being there
Step 2. Make the most of clothes and other fashion accessories instead of buying unnecessary new things
Rediscover and display old "lost" clothes in storage or at the back of a closet, and reorganize wardrobe (or other storage) and dressing habits to avoid "lost" clothes again.
Part 6 of 10: Reducing Expenditure on Food and Beverage
Step 1. Focus on food
The only real difference between a can of corn for $25,000 and $7,000 is $18,000, and the satisfaction of knowing that you're not paying more just to live on your ads leaves you and others nagging you for paying more. Of course there are exceptions; people on a low-sodium diet often have to pay more). Traditional markets can be an option to save a lot of money.
- Look for foods that have a "promo" label to save money. Usually to welcome certain celebrations, such as Chinese New Year, Eid al-Fitr, Christmas, many supermarkets and convenience stores offer promo prices for certain foods. The deep-fried prawns were sold at a discount and looked absolutely delicious. Do you prefer grilled chicken breast with peas and rice? Make mealtime an experience, not just a filling activity. If you are a spendthrift, you may end up spending a lot of money even if you eat at home instead of at a restaurant.
- Buy foods that offer discounts, especially meat. Most supermarkets routinely provide special prices for various meats. In the end, you will get a chance to try all kinds of meat. The only difference between expensive meats and other meats is the extra fat and tenderness that can make more expensive meats cook just a little bit.
- Buy a coffee pot for Rp. 150,000, or an espresso machine for Rp. 2 million (pump-driven ones are the best models, but expensive machines can break just like cheap machines). Making your own coffee at home instead of spending Rp. 15,000, Rp. 25,000, or Rp. 50,000 to buy a coffee latte at a coffee shop can save money.
- When buying meat products, try to identify which part of the body the meat comes from. Minced meat, although cheap, is pre-processed which increases the price. Tough cuts of meat can be slow-cooked and very tender. Also, larger cuts of meat can be cooked all at once and used for several different dishes. (Cook one large piece of meat and once it's tender, cut it into pieces to make enchiladas, sandwiches, stews or soups, and so on. You simply save each serving, label it with information on the type of meat and date, for later use). Offal (chicken liver and gizzard, beef liver, tripe) are often much cheaper than regular meat, and can be used to make delicious, filling stews.
- Do not buy fresh produce in bulk to avoid spoilage. Frozen products will extend shelf life for fruits and vegetables.
- Buy fresh foods that are in season. This kind of product will be cheaper than fresh food imported from abroad. Buyers have to pay for fuel to get food there.
Step 2. Consider bringing lunch from home instead of buying lunch every day
Even though lunch in the cafeteria is inexpensive, you still have to spend several tens of thousands of dollars every day. Please do the math yourself.
Step 3. Use coupons if possible
Be sure to buy groceries that you normally eat so you don't buy something that will be wasted by sitting on the shelf too long or rotting in the fridge. Also, buy store-manufactured products and use store-issued customer cards, if possible, to purchase food. However, consider that the brands produced by the store are just as good and often cheaper than the brands listed on the coupons.
Step 4. Try to have a membership card issued by a supermarket/convenience store
Membership cards are inexpensive and can sometimes be obtained for free with a certain amount of spending. Cards usually give discounts on certain products and accept coupons. In addition, by reducing the frequency of shopping, you save money by not having to go to the store every week and risk buying things on impulse. Membership cards should be used with care or you won't save money.
Step 5. Measure the product carefully
For example, powdered soap, flour, dish soap or cereal. Do not be wasteful in using the product just because it is sold in large containers.
Step 6. Buy a product that you will use instead of replacing it just because it is on the list and is the only product available
Would you enjoy another brand of cereal instead of what you normally eat, or would the box of cereal sit on the shelf untouched?
Step 7. Realize the effect of product promotion on your shopping habits
Try to track it well. If promotions start to ensnare you, ask yourself if you're used to using the product. If not, ask what the benefits will be by using it now. If you want to buy it just because it's in plain sight and looks good, that's not enough reason to buy it.
Step 8. Avoid or minimize addictive or mind-altering substances, things that are illegal, currently expensive, reduce current productivity, reduce future productivity, cause health problems, or lower judgment in an effort to save costs
Alcohol has all these adverse consequences.
Part 7 of 10: Making Insurance Savings
Step 1. Handle insurance costs
The quickest way for some people to reduce their monthly expenses is in the field of insurance, both health, car and life insurance. Companies that offer insurance are very competitive. Get offers from multiple companies. If you are considering it, keep in mind that a lower initial premium does not guarantee the most cost efficient!
- Car Insurance: Learn the amount of fees you have to pay if there is a claim (deductible). Do not immediately increase your dedcutible - analyze all insurance policies offered based on your needs and expectations. Do a risk analysis first. If you hire an inexperienced driver and have no savings, having a high deductible may not be the best option. If the car is paid for in installments, you may need minimum insurance. However, if you have a good driving history and are also the owner of the car itself, you can consider a high deductible to reduce premium costs.
-
Health Insurance: Learn about available alternatives. Compare consistent and cost-effective policies to your lifestyle. Consider what you need with what you have. Single men in their mid-30s with excellent health may choose a policy with co-pay (payments are set in the policy and the policyholder must pay each time they use medical services) or co-insurance (term insurance in which payments are made by several parties). and lower premiums, while married couples looking to start a family may be better off paying a higher premium, but offering more coverage. The goal is to see what you should have.
Another alternative: Join the BPJS Health program. BPJS Health is a Social Security Administering Body established by the government to provide Health Insurance to Indonesian people who are registered as participants. To become a member you must register through the BPJS Kesehatan office. After registering and paying dues, members will get a BPJS Health card that can be used to get health services. The amount of BPJS contributions is adjusted to the type of treatment class taken
- Life Insurance: There is no doubt that life insurance is important, for many people. The rule of thumb for someone who is married is to substitute income for 3-5 years. However, if you are single, in your 20s, consider carefully and decide whether your insurance has more coverage than you need. If you are in your mid-60s and married, consider a competitive plan from an insurance company like Allianz. If you are interested in a “burial policy”, again, choose a competitive company. We want to leave wealth for our loved ones when death comes, but we don't have to sacrifice the quality of our present life.
- Home (and Tenant) Insurance: This insurance can be a big expense and many homeowners don't realize how much they are paying because it's paid in installments on the home, out of sight, and hence forgotten. Study the policy with your agent. Is your personal property worth IDR 3 billion like you got from the policy? Look for unprotected areas. Is water damage covered? What about flood damage, hurricane? Think about whether you will need it. Are there any important things that are excluded? Are irrelevant items included? Yes, the chaise longue of Aunt Martha's grandmother does have sentimental value, but do you need special rider insurance to cover it?
Part 8 of 10: Saving Money on Items in General
Step 1. Consider used goods
This is an excellent way to save significant money while also recycling! If you have to buy something, there are other options for getting it besides big shopping malls or well-known department stores. You can find good thrift stores or online stores that offer very cheap items, ranging from knick-knacks to household appliances to clothing. You can't imagine how quickly a 4-year-old's shoes can get too small (if that happens, donate them so someone else can use them). Look for a garage sale, neighbors won't look down on you just because you bought the jacket they're selling. Run your own garage sale and they may need something you no longer need. There are online sites that often offer cheap used goods, such as OLX.com, Bukalapak.com and id. Carousell.com.
Step 2. Save on razors
If you shave, look for a razor that lasts longer. Some razors can be used to shave many times with satisfactory results than others so that the cost you spend to buy a razor is only a few tens of thousands and is not too significant.
Step 3. Don't buy stuff, even if it's very cheap and attractive, if it causes unnecessary extra expenses
Some of these items include printers and suits, vehicles (though rare), should be removed even if they are not damaged. These items include:
- Inkjet Printers (You can get a laser printer for under $1,500 and it costs around $400 to print each page instead of $3,000 or more, with fast, water-resistant prints). A color laser printer may be cost-effective if you need a lot of color printouts, even if they don't turn out as good as photos. You can take advantage of a printing service (such as Revo) which offers better deals than the high quality inkjet printers that are usually used for printing photos.
- Cotton suits and garments should be ironed, unless it is essential to give the impression needed to make money in one's job. A cotton shirt that doesn't need to be ironed in a fine print to hide any creases is great, can save you money (tens of thousands) and time, and electricity for washing. Synthetic pants can save you a few thousand on each wash and don't feel weird on your feet because your feet aren't as sensitive as your arms.
- Most television and also movies (though not as intense as television). The purpose of television, from a financial point of view, is to make you watch television and feel unhappy about not having the things you would love to have. Some of these items are more than trivial. There's an even more insidious goal, which is to keep you watching so as to distract you from activities that might be more fun or educational (and possibly potentially income-generating). Many films focus on an extravagant and extravagant lifestyle, creating a mindset that is incompatible with a frugal lifestyle.
- Luxury cars. The fastest cars available on the market have twice the speed, corner about three times harder, and have smoother, more polished seats than cheap cars. The difference is much more subtle. Mass-produced cars, such as family sedans and minivans and vehicles for professional drivers such as city cars, vans and pickups are backed by large companies that optimize them for things like cost, comfort, fuel consumption, safety and durability, and convenience. maintenance. More expensive cars, although not pushed to exceed the capabilities of similar cars, often sacrifice big things in that aspect to provide small improvements in other aspects. In addition, expensive cars also require higher additional costs because of the small sales volume. If lots of people in your neighborhood are replacing good cars for no valid reason, a car that is well maintained and carefully inspected can save you a lot of money.
- Video game consoles and other devices, electronics, with vendor lock-in (depending on specific vendor). This equipment may look cheap and profitable if you believe you only want a few games or other accessories that you will use frequently for playing. However, adapting the equipment for various games or other uses requires you to pay excessive price increases each time. On the other hand, computers provide a lot of games that can be purchased cheaply after a year or two of release and many are made available for free by their creators, such as wikiHow, such as Nexuiz.
Part 9 of 10: Taking Care of Your Finances Well
Step 1. Actively manage credit
Unmanaged arrears cost you hundreds of millions over the years due to rising interest rates and insurance costs. You may lose your job or miss a job opening. Take all three reports: check for anything that doesn't look right. Pay bills on time or early. Pay off outstanding debt (for example, credit cards) and keep them all away.
Step 2. Avoid overdraft on debit card usage
Overdrafts may seem like a great idea, but you're actually one step closer to a costly trap. Although the bank you are a customer of does not charge for using an overdraft, they will if you agree to it. The good thing about debit cards is that you don't use money that you don't have, and overdrafts can certainly weaken your financial discipline. Do not do it! If you currently have to use credit card debt or overdraft, don't forget to compare interest rates, for all cards and overdrafts. Consolidate loans into the cheapest credit while paying off debt.
Part 10 of 10: Reducing Housing Costs
Step 1. Avoid excessive housing costs
A safe area and, if you have children, close to a school where they can study in peace is very important. If you like large courtyards and large windows, or regular convenient access to various shopping areas (by itself not helpful if you are looking to save money, for example neighbors who live in luxury and often exceed their means), recognize it and pay for it. However, a house that rains frequently and slowly rots while its occupants are happy to occupy it (hopefully), and can be replaced or duplicated after months of notice in a way that is continually being made more efficient. There's plenty of free space to build on, and areas that aren't overcrowded are expected to compete for money as builds increase over time if requested. According to recent developments, a house is not considered an extraordinary “investment”, even though it has significant residual value (the residual value of an item that has expired) and some people can make money with a home.
Tips
- Think carefully before buying anything. Ask yourself if you need it or just want it. Do you already have items that have the same function? Is the item of good quality or do you have to replace it after several uses? Most importantly, are you willing to screw up your savings plans by buying them? If the item is useless, forget it.
- Stop gambling. If you like to gamble (unless you make money all the time and you know it from your tax returns, of course)… stop. Leave that habit. The chances of getting rich by gambling or winning the lottery are extremely small.
- Apply the 24 hour rule. Wait 24 hours before buying something non-critical.
- Limit alcohol. Alcohol is an additional expense that can be eliminated, or at least significantly reduced.
- Consider buying items that can be recycled. Rechargeable batteries can be a good choice if the battery consumption is fairly high. The question you have to ask yourself is: why is battery consumption high and how to reduce it?
- Stop smoking. In addition to spending around IDR 600,000 per month, there are substantial additional costs for health and life insurance (and possibly a vehicle and house) and huge potential (almost certainly) for extraordinary medical expenses.
- If you subscribe to a less essential service, such as satellite radio, be mentally prepared to discontinue the service and then contact their finance department. Tell them that you want to stop the service, they will transfer you to several people, but every time tell the truth, that you want to stop it because you can't afford it. If you insist, they will offer a discount, which is huge, to continue the service because it is much cheaper for them to keep a customer than it is to get a new one. If they don't offer a discount, stop the service and live without it while saving money.
- Do insulation. Making insulation for attics, walls (including the outer walls of electrical outlets) will save money over time. Check the condition of the weather strip (dust or weather barrier) around the door. If you can see sunlight between the door and the frame, buy a roll of self-adhesive foam seal and seal the gap.
- Stop using paper napkins. Cloth napkins absorb liquids better and are reusable. Cloth napkins can be made from old tablecloths. Cloth napkins also clean better than paper napkins.
- Think carefully before buying anything. Ask yourself if you need it or just want it. Do you already have items that have the same function? Is the item of good quality or do you have to replace it after several uses? Most importantly, are you willing to screw up your savings plans by buying them? If the item is useless, forget it.
