Cost Optimization Initiatives

Tuesday, April 19, 2011

I'm not sure how many people are sharing my sentiments but things are getting expensive these days. Prices for a lot of stuffs have gone up. And our salary is not on par with the purchasing power we ought to have. This morning, the news have been quite gloomy for the average people on the street. A report by a Swiss bank, indicated that our domestic purchasing power ranking is low, the food prices are going up and there's also another interesting article, with a chart on how much effort we need to pay off our purchases.

Like any company that runs the P&L, Bear and I are also conscious of our spending. With these economic situations, it's always better to spend wisely and have plans for cost optimization initiatives for our monthly budget.

For example, we often go movie outings on a Friday, when there's a 'buy 1 free 1' promotion by Citibank, sharing drinks when eating out. Buy the same food at locations with a lower price, ie hawker stalls, night market instead of bakeries, cafe, etc. Plan out the traveling routes to conserve petrol usage/toll payments, do bulk shopping and take advantage of promotional items. Eat cheaper meat such as chicken instead of pork/fish/beef (I read an article this morning that chicken price is going up, not sure what meat to eat anymore). Buy local fruits instead of imported ones with similar nutritional values. And there's a planned celebration or trip, it's good to plan ahead for the spending hike when it comes.

And the list goes on...

I've once read from a book, 'Poor Dad, Rich Dad', that the first step in financial independence is to eliminate as much debt as possible. With that in mind, I'm trying to be very prudent and giving it a lot of thoughts even when buying air-conditioners, smartphones, new cars etc, when it's always ends up with installments (means more debts).

The question I always ask is, how can we do more with less? When shopping, prioritize the things we need to buy and not the things we want to buy.

3 comments:

nicky05 said...

change job if must, ask for better pay. Because soon ur budget will become obsolete, useless when everything is changing and increasing.

Beyond said...

Being gays are much easier, we don't need to consider about kids that alone saves alot, because no marriage also ma haha...

When u finish ur studies and work, I believe things will be alot lighter, can slack off from ur budget a little...

Mr.D said...

I have started to become more finance conscious as well. I wish we have the coupon culture like in US.

thx for the tips.