Saving Tips

With the economy expected to remain in the doldrums for some time it makes great sense to be sensible in your spending habits. Most economists advise to stash any extra cash for the rainy day. Now is not the time to splurge. Here are a few tips which we can keep in mind and follow.

Some of the savings you can make at home:

• Switch off all lights and power points when not in use.Do not keep equipment (computers, micro wave oven and television sets) in standby mode when not in use. You can also use a timer to automate the switching on and off of your porch and night lights.
  
• Switch off fans and air conditioners when there is no one in the room or when the room temperature has cooled down. It is best to have an automatic timer to switch off after a set time.
• Use energy saving lamps
  
• Iron a bundle of clothes at a time as ironing one article wastes a lot of electricity when heating up the iron
• Use a thermos flask to keep hot water instead of reboiling
• Don't put hot food into the fridge and don't overstock it
• Take everything you want from the fridge in one go instead of opening the fridge several times
  
• Turn off taps when brushing and flossing teeth
• Machine wash clothes only when there is a full load
• For those who recycle water, used water from your kitchen can be used to water plants or wash outside floors and drains
  
• Shower instead of taking long baths
• Use a loofah or a sponge to minimize soap or shower foam
  

When shopping you can save if you:

• Look up and down at the top and bottom shelves at the supermarket,to find comparable products at lower cost.These stores are very smart about making sure that the products with the highest prices are also the easiest to see and find. That's why they put them at eye-level. Some stores place the same little things all over the store in the hope that you will eventually pick them up on your way to the checking counter
  
• You can save big money by buying store brands and generics.
• If you haven't looked at the price difference between brand-name and store-brand products, prepare to be amazed. Brand-name products can cost 10%, 20%, even 30% or more than their store-brand counterparts.And what are you getting for all of that extra money? Nothing more than perhaps a prettier label and some expensive marketing and advertising.Just look at the ingredients and see for yourself. Often, the list is 100% identical, especially in the pharmacy section
• Everything at the salad bar is usually the same fixed price, but sometimes they have foods there that would cost much more if you bought them in the aisles.Generally, you want to avoid heavier items, such as cheeses and fruit cocktail. However, if you're making stir-fry and need just a handful of red peppers, broccoli and other vegetables, the salad bar might be the perfect answer.
• Before you start your shopping trip check out the ads from competing stores and bring the list with you. You can compare the prices of the things you wish to buy in your shopping list. Having a shopping list is good but you must be flexible enough to change your plans if the things you wish to buy are expensive, not on offer or not available.
• Do not go shopping on an empty stomach as you would tend to shop for things you don't necessarily buy.
• Do not buy things you don't need even if they are on offer. You may regret later after indulging in impulse buying
• Do not buy more than you need just because they are cheap

When considering to refinance your housing mortgage loan at a lower rate:
While refinancing at a lower rate can lower your monthly payment, that doesn't mean you're going to save money.You have to consider your closing costs, which can be substantial.

If you're saving RM50 a month with a new loan but closing costs are RM3,000, you need to stay in the house for 60 months just to break even.

If you're not sure how long you'll be in the house, refinancing may not be right for you.

To figure out if refinancing makes sense for you, check out how much the new monthly repayment will be and how much penalty you have to pay for prepaying your present loan.

If you own a car:

• The Minister Dato Shahrir is right. Sure, the oil companies and the petrol stations absolutely love to sell you premium fuel because it costs a lot more and they will earn more commission. The reality, however, is that most cars don't get much benefit from the higher octane.Most cars do not require premium fuel (Ron 97), so if your car doesn't, switch to either a regular or mid-level fuel grade (RON 95) when it becomes available.Your car won't know the difference, but your wallet sure will.
• Keeping your tyres properly inflated will increase petrol mileage and lower your costs.Experts say that for every one pound per square inch (PSI) that your tyres are underinflated, you could be decreasing your gas mileage by one-half percent.That means that if your tyres are supposed to be inflated to 32 PSI and you're only at 22 PSI, you're cutting your mileage by 5% and using more fuel than you need. Check your tyre pressure at least once a month.
• Plan your journey before you start. If possible, follow a less congested route
• Plan your errands all in one trip
• Best of all, use public transport to save time on the road and save money on parking bills

The list continues. Let us start being conscientious and disciplined in order to have a better and safer future.