SINGAPORE: Although official data says that Singapore’s core inflation dropped to 3.0%, Singaporeans are still looking for spending hacks to cope with inflation. One man shared on social media how he prefers the Value Dollar Store for snacks, drinks, and house cleaning stuff. He also emphasised that he buys from Toa Payoh because the one at Orchard is more expensive. Furthermore, he shared that he goes to Venus Beauty for his toiletries and turns to FairPrice for discounted fruits, primarily apples and oranges.
Other Singaporeans chimed in and shared their “spending hacks” too. xKeenShibe shared she brings her own water bottle, so she doesn’t need to buy drinks outside. Another agreed and said, “I’ve stopped ordering drinks in restaurants!” Juanskinfreak shared that he waits for Cold Storage chicken to be 50% at 9 p.m. when she feels like eating roast chicken. Others found the tip helpful and said they would try to do the same. Adding one more tip, he shared: “Don’t go on Friday-Sunday. It’s always more “leftover” for sale on weekdays!” Another added that Donki provides 25% off their food after 8 p.m. While saoupla added, “Not having kids will help a lot.”
According to DBS, in June 2022, Singapore had the highest figures since the Global Financial Crisis, with the consumer price index (CPI) and core inflation rate reaching 6.7% and 4.4%, respectively.
Although it was reported on Oct 23 that there’s a drop in Singapore’s core inflation, making it the lowest in 16 months, many Singaporeans are still looking for ways to curb their spending.
Spending hacks to cope with inflation
To counteract the impact of inflation, DBS recommend the following strategies:
Reduce unnecessary expenses:
With expenses, especially discretionary spending, on the rise, it’s essential to review and adjust your budget periodically. This entails identifying non-essential expenses and finding ways to reduce them without compromising your quality of life. Examples include cancelling unused subscriptions and optimizing transportation costs.
Shoppers can adopt various strategies to cut costs, such as buying house brand products, purchasing items in bulk during significant discounts, and shopping near closing time to take advantage of end-of-day discounts. Consider exploring pre-loved items through platforms like Carousell and use credit/debit cards that offer cashback benefits.
Inflation-proof your savings:
Savings in a traditional account may lose value due to inflation. Consider moving surplus savings into higher-interest accounts or low-risk investment options, such as Singapore Savings Bonds or money market funds.
Investment options, like regular savings plans (RSPs) or robo-advisory platforms, can help your money grow over time, potentially outpacing inflation. RSPs use dollar-cost averaging (DCA) to invest steadily over time, and robo-advisors combine human expertise with algorithms for optimal portfolio management.
Increase your income:
Exploring additional income sources, such as tutoring, ridesharing, selling unused items, or monetizing hobbies, can help ease financial pressures caused by inflation.
While inflation in Singapore still poses challenges to consumers, adopting a combination of prudent financial habits and seeking new sources of income can help Singaporeans mitigate its impact on their financial well-being. These strategies offer practical steps for Singaporeans to navigate the current economic landscape effectively.