How I Saved $200,000 in 3.5 years Without A Degree (Part II: Live + Spend)

Following up on Part I 

Live

11. Develop good habits

I don't smoke, go clubbing, or gamble (includes lottery). 

Bad habits are bad for a reason, and bad habits are expensive now, or when accumulated into the future (think health problems)

Good habits, on the other hand, are good for our health and our finance.

Drink lots of water, have a good night's rest, eat more veggies, exercise, maintain a good posture, go for regular dental and health check-ups. 

Develop good habits. They are good not only for your health but for your wallet in the long run.

12. Consider a low-cost or free hobby

There are many hobbies that can keep you healthy, occupied, or even enriched with low or even no cost at all. 

Before reaching my first 100k, I used to spend my free time reading, swimming, rollerblading and playing my keyboard under the guidance of YouTube tutorials

Since then, I have tried out a few paid activities and committed to those that I enjoy greatly. Even though they have become a recurring fixed cost, I see them as an investment to build skills that I can use for a lifetime.

13. Stay with my parents

There was a period of time when I seriously considered moving out to save time on commuting so that I can catch up on more sleep because I typically spend 3 hours commuting on a rough day. As such, I'm usually very tired in a long day and that decreases my productivity. 

I even had a trial by moving in temporary with a friend renting in the central area for a month and while the convenience is great, there are more costs to consider other than the already expensive rental.

Renting is expensive, and I figured that it's still cheaper if I were to take a private hire for the whole month (which I still don't).

Spend
A longer list for this because at my stage where I don't earn much, I give credits to being tactful about my spending

14. Understand what are the things I really need

I break down my time into blocks of activities and review what items do I really need for each activity.

Using work from home as an example, I need a large desk, a computer, standing monitors, keyboard, mouse on a mousepad, charger (for both computer and phone), calculator, notepad, a pen, and a jar of water with a mug. 

I also need a good chair.

By listing down what I need for a particular activity, I don't waste time, money, attention, and space on any other good-to-have stuff that is unnecessary or even distracting to what I'm doing at the moment.

15. Decrease my spending

The golden rule to save money is to spend less than you earn. 

I use the term 'spending' here instead of 'expense' is because 'expense' sounds like a fixed cost that you can't do much about, whereas 'spending' is more flexible, and yes unless you are already extremely frugal, there must be some spending you can lower.

Spending less is more of a mindset rather than discipline. Suppressing your desire with the sole purpose of saving more money is just painful, frustrating, and depressing (been there done that).

It boils down to the ideology that you do not relate spending to happiness, and accept that buying anything else beyond the basics is just an attempt to buy feelings.

The tip is: Don’t fight temptations, make them irrelevant.

The more things you are able to live without, the lesser money you will be spending, and the higher your savings go.

16. Reconsider my purchase

Being someone who is a marshmallow loser, I have to confessed that I used to shop on impulses when I was still a student. 

It was only until I had clear financial goals that I started to brainstorm and experiment with many ways to optimise my life so that I can save more money.

I have since learned to reconsider my purchase to ensure that the money that I part with really adds the value that justifies its potential future value

17. Consider alternative ways to source for things

Other than buying things off the shelves in a mall, which are usually marked up and supported with marketing gimmicks, there are many ways you can go about to acquire a product.

For starters, you can make, grow, borrow, barter, or take a look in the second-hand market.

There are also many communities on social media that facilitate giveaways from people who no longer need the product at a small postage fee or meetups.

18. Adopt pre-loved

New stuff is good, but there are still many benefits of getting a pre-loved item. Unless you are into collections, most second-hand items are usually much cheaper or even free.

You are also more likely to sell the item back to the market at a similar price you have paid and therefore lowers your actual cost.

In this way, you are involved in a part of the virtuous cycle whereby you are borrowing the item from the market at a small rental fee and returning it back when you no longer need it.

Cost aside, it is also good for the environment as it reduces the demand for a new product, therefore reducing the finite abiotic resources needed to make the product, and also reduces the waste in the society.

19. Buy quality not quantity

I always make it a point to maximise the quality of the stuff that I use more frequently and minimise the quantity of the things that I use lesser

On top of the fact that buying fewer items allows me to have a higher budget for a better quality one, there are also many benefits of using good quality items:

• You will feel like a million bucks as quality things tend to feel and look way better 
  
• They are made to last longer, so even though they are expensive upfront, they can end up cheaper than a lower quality product because they have a longer shelf life
  
• They are more likely to be repairable or has a longer warranty, and you are more likely to send it for repair than getting into the toss and buy cycle
  
• They can retain, or even increase in value, as such, you can even consider them as a diversification of investment like arts and antiques
  
• By buying better stuff, you will want lesser of it and therefore demanding lesser resources which pollutes the environment lesser :) 

20. Learn to negotiate

I couldn't emphasize further the benefits and importance of negotiation. 

It is not only a useful opportunity to level up your persuasion and communication skills, but also has the potential to save or even make more money

However, don't forget that your time is an important resource as well so always remember to always justify the time spent on it.

21. Consider everything I own is for sale at all times.

Have you ever wondered how much do your things really cost you and how much do they worth now?

Understanding the resale value and the utility cost of the product will encourage you to justify if the price is worth its value.

In addition, keeping the resale value in mind will motivate you to take better care of your stuff, which will increase its lifespan, regardless you are actually going to sell it in the future or not.

22. Groceries: Get real food, compare prices and plan your meal according to the promotions

I'm not against processed food, but most of the staples in my cooking are usually made up of real and/or fresh ingredients. They are not only healthier but also cheaper, and it saves me a lot of time because it is easier to choose because you won't consider the brand of potato or lettuce, will you?

If you are staying in an area blessed with more than one grocer, it may be worthwhile to compare prices as they usually have different promotions for fair competition, so it is a good idea to whip your meals around the ingredients on promo to save money, spend less time thinking about what to cook, and have a variety of dishes throughout the week.

23. Don't waste

Just because you can afford it doesn't mean you should waste it.

This applies to money, time, effort, food, any other fast-moving consumer goods such as skincare and makeup, and all the things that you own.

Money not spent is not money wasted, time not well spent is time wasted, and the most expensive thing that you own is the one that you used the least. 

We only need that much food and things. Thus, by not wasting your resources, you need lesser money to acquire them again and therefore left with more money to get better stuff and more investment capital.

24. Own only one credit card and never pay interest

I prefer to keep things simple when it comes to credit and be at the receiving end of the interests.

Have only one credit card also refrain you from overspending based on promotions and miss the yearly waiver call

Part III