How to Stretch Your Dollar During Inflation
Key Takeaways
- 1. Eliminate expenses where you can, especially the ones that are automatically billed to your account and occur unnoticed.
- 2. Use the right credit card that offers cashbacks and offers suited for your everyday needs.
- 3. Treat yourself occasionally so that you can stick to your saving plans for the long run.
Consumer prices in Singapore continue to rise, with the core inflation rate hitting a 14-year all-time high of 5.3% in September 2022. Furthermore, with GST set to increase to 8% in 2023 and 9% in 2024, consumers will start to feel the pinch from price hikes. Little indulgences aside, the cost of everyday necessities like a cup of coffee at our neighbourhood coffee shop and groceries will start to creep.
With the cost of living trending upwards, how can the average consumer cope with the hike? Are drastic lifestyle changes needed, and will one need to relook at the way we manage our personal finances? Read on to find out more about budgeting in the face of inflation.
Tip 1: Reduce Unnecessary Subscriptions and Fees
Being frugal doesn’t always mean making do with uncomfortable compromises. The easiest way to start is by eliminating expenses where you can, especially the ones that are automatically billed to your account and occur unnoticed.
For starters, there’s a chance that you’re spending money on a subscription service that you’re either not using or not making the most of. It may be a gym membership that you hardly ever use or a streaming service that you no longer like.
Go through your credit card statements for recurring monthly expenses billed to your account. Then, think about whether you really need them, and if the money could be better spent.
Tip 2: Make Online Shopping Work for You
Although online shopping may be a money pit for some, if used with foresight and self-restraint, it can help optimise your purchases. Afterall, there are some expenses which you can’t skip on such as everyday necessities to feed yourself and your family. It is more useful to find ways to shop smarter amidst rising cost of living by shopping on platforms with offers and discounts.
Here are some helpful strategies:
1. Bulk Buying
Purchase items with a longer shelf life such as cleaning detergents, toiletries, or canned foods in bulk. You’ll benefit from the significant cost and time savings in between replenishing stock.
Don’t have space to store the extra stock? Consider group buy programs through e-commerce websites or in your neighbourhood.
2. Buy House Brands
These days, many grocers offer popular products at comparable quality and at competitive prices. If you are brand conscious, source for cheaper alternatives by doing a quick browse on e-commerce catalogues.
3. Delay Gratification
Take advantage of shopping festivals or limit big purchases to only when discounts are offered. If you’ve been eyeing a new addition to your wardrobe, waiting for it to be discounted can help you save money. By practicing delayed gratification, you’ll also have a better gauge of whether you really wanted the item in the first place.
4. Use the Right Credit Card
With the right credit card, you not only make the most out of online shopping spends, but also earn rewards while doing so.
Take the Citi Rewards Card* for example. Cardmembers can reap up to 10X Rewards when shopping online. Categories to earn bonus points include shopping spend, food deliveries, online groceries and on rides. Best of all, use these CitiThankYouSM Points to redeem for Citi miles, cash back, vouchers and a suite of exciting rewards.
5. Plan Ahead
While you’re devising ways to shop smarter, consider buying planned big-ticket items before the GST hike kicks in. For example, if you are moving into a new home and are looking to purchase new household appliances, you could start now. Just be careful about making impulse decisions, and you’re set to rise above the challenges of inflation!
Tip 3: Get Cash Back for Everyday Spend
Smart spending is easier when you know how to leverage deals on apps and credit card promotions. Cash back deals are great because you get a percentage of your money back – money you ordinarily wouldn’t get back had you paid cash.
Credit cards like the Citi Cash Back Card^ offer a wide range of money-saving perks to make every dollar count. Feeling pain at the pump? Beat higher petrol prices with up to 20.88% on fuel savings at Esso and Shell. With the same Citi Cash Back Card, stretch your dollar even further with 8% cash back on groceries at supermarkets and grocery stores and 6% cash back on dining at restaurants and cafés daily. You can also earn 0.25% cash back on all other retail purchases.
Tip 4: Treat Yourself Sometimes – and Save While You’re At It
Penny pinching at the expense of self-care is unsustainable in the long run. If we are to live life wisely, always remember that money is a means to provide for yourself. Don’t forget to treat yourself – within your means, of course!
If treating yourself means taking a trip overseas, kickstart the planning and save more with the Citi PremierMiles Card#. Cardmembers can earn Citi Miles for every Singapore dollar spent either locally (1.2 Citi Miles) or abroad (2 Citi Miles). Convert these hard-earned Citi Miles for frequent flyer miles, travel cash rebates and other privileges.
Not yet a Citi PremierMiles Cardmember? Sign up today to enjoy up to 30,000 bonus Citi Miles when you spend so that you can save even more for your next trip. This welcome offer is valid till 31 January 2023 and applicable for new Citi Credit Cardmembers only.
Spend Wisely, Budget Smartly
Inflation is inevitable. If you spend wisely and within your means, you can cushion its impact on your finances and lifestyle. Set a realistic budget, review it every month, and perhaps tweak it to suit your present circumstances.
Beyond budgeting, you may also look into ways to grow your income and moneyThis can give you more leverage to manage the impact of inflation, and make up for any possible budgeting shortfalls that may arise from higher prices.
Sources
- * Citi Rewards Card Terms and Conditions
- ^ Citi Cash Back Card Terms and Conditions
- # Citi PremierMiles Card Terms and Conditions
Disclaimers
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