10 ways to moderate the rising tide of cost of living

Rising tide in the cost of living
Singapore is facing one of the highest rates of increase in the Consumer Price Index (CPI) in decades. The BRUTAL TRUTH that is facing all of us living in Singapore is that your money is losing value even as you save and put it inside bank savings accounts that are yielding 0.25% against the backdrop of 4-5% inflation.

We can sit around and engage in moaning and groaning about WHY, WHY and WHY is the cost of living going up while wages may or may not have gone up but it is more productive to engage in brain storming ideas that we can make our dollar stretch in today's high cost pressures.

10 ways to moderate the rising tide of the cost of living

1) Save and Invest
Some people believe that you should in fact borrow money when the cost of living is going up because saving results in the value of your money declining even as it sits in the bank. This works if you can profitably invest the money you borrow. If you are unable to get consistently low risk returns that overcomes the rate of your borrowings, this may put you at greater financial risk.

Save and invest, continue to do so because when you save more, you will tend to spend less given a certain level of income.

2) Cut down travelling expenses
For those who take public transport, consider walking instead of taking that feeder bus if it is only 1-2 bus stops. Take less taxis or perhaps take a train to somewhere near your destination then take a taxi for the final stage. For those driving, pump the cheaper 92 or 95 octane petrol because most vehicles are able to accept lower octane petrol.

3) Eat more vegetables
Reducing the amount of animal protein (and fat) in your diet and substituting it with tofu, beans etc as well as more vegetables is healthier and helps you save money at the same time. I consume rolled-oats from Mondays-Fridays for breakfast and it saves me a huge bundle plus helps to maintain my weight while providing for good dietary fibre for my system.

4) Drink more water less colas and soft drinks
The cheapest and healthiest beverage you can drink is water! We can still enjoy the occasional soft drink now and then but we should avoid drinking soft-drinks on a daily basis. I carry around a 500ml bottle of boiled water from home and drink it when I am out of the office. I still drink my daily cup of coffee but also consume the 3-in-1 packs on alternate days along with the $0.70 or $0.90 kopi-C.

5) Exercise to destress and relax
Ever since I completed my reservist and no longer have to jog because my Individual Physical Proficiency Test (IPPT) requirement has lapsed, I continue to jog to destress and help me manage my weight and keep myself healthy. When you are healthy, you incur less medical costs and see the doctor less.

6) Sleep early
Sleeping early is under-rated in Singapore because we have the internet, cable television and movies along with various options to entertain ourselves. Giving ourselves sufficient rest and on occasion, more rest by sleeping early saves on electricity and allows us to feel refreshed and energised after a hard day at work.

7) Borrow Books, Audio-Visual materials from the Library
Our public libraries are well equipped in terms of books as well as facilities for a relaxing evening. If you are looking for a place to sit down and read some free magazines, newspapers and books, you can make use of the various public libraries for education, entertainment and relaxation all at once! The best thing is that it's mostly FREE except for premium services such as borrowing of DVDs from library at Esplanade.

8) Sleep without the air-conditioning
December is the month when the weather turns cooler and you'd be surprised that you can sleep on nights that are cool. Just use the fan as opposed to switching on your air-conditioning for 8 hours in the night and you can still get a good night's sleep with the fan that is more energy efficient.

9) Shop during sales
The Great Singapore Sales (GSS) does offer good bargains for working clothes and accessories that one buys. I usually shop for my clothes during the GSS. As a guy, I tend to shop less for clothes and spend my money on gadgets more. My new rule of thumb now is to use up gadgets until they physically fall apart on me before I buy a new one.

10) Visit public parks
If you have visited the various public parks and park connectors in Singapore, you will realise that the Government has spent a lot of money beautifying our surroundings. Make use of these facilities with your families for exercise and recreation as they are also free but provide great value in terms of the playground equipment and the soothing sites that nature (assisted by man) can offer!

There are many other ways to moderate the rising tide of costs of living. Do make use of them and be well and prosper.