Money & You-10 August 2014

StarSpecialTHE STAR Sunday 10 August 2014

MONEY & YOU

StarSpecial, Sunday 10 August 2014 MONEY & YOU 2

Card culture andthe urban consumer

BY RACHEL PUNITHA

THE world we live in is shrinking. Information that would have taken an entire

room to store just a decade ago can today be stored in just a microchip in your phone or on your bankcard. There is now a sense of compactness and efficiency, a sense that things are simple and not wasteful.

This certainly applies in the world of financial transactions, where cards have given birth to the new cashless and paperless trend. More than just easy transactions, cards have the additional elements of data collection, rewards and niche-selling and fit nicely in your wallet.

Consider your wallet a bag of tools. These tools can be used to deal with every avenue of the financial sphere – making payments, dealing with debt, utilising credit.

These same tools can also save you money, give you rewards, reduce cost and be the answer in an emergency. These tools can be the answer to many banking, transactional and financial needs.

Without a doubt, the most significant cards in your wallet, other than your identification cards, are your credit and debit cards. These cards are frequently used, with maximum interaction between institution and the consumer. These cards have revolutionised the way we shop, save, budget and deal with money.

Financial footprints

Since the late 1990s, lawmakers, consumer advocacy groups, officials and other affiliates have become increasingly concerned about the rising misuse of credit cards among the younger generation.

Banks and other financial institutions are on the same page, as the responsible usage of debit and credit cards is their main concern.

Keeping good payment records influences one’s credit score and will affect the obtaining of loans and other financial products in the future.

The Central Credit Reference Information System (CCRIS) is where banks and other financial institutions analyse the responsibility of consumers and the utilisation of their cards.Yes, consumers need to be aware of their spending. This is a given, but being aware of their score and track record is of big value.

Consumers can condition themselves to pay their outstanding balances on time. Even when this proves to be a struggle, there are other actions one can take to keep a healthy score such as limiting purchases, avoiding penalties and so on.

A healthy score would ensure the ease of future dealings with institutions in terms of loans and

credit card approvals.

Credit and debit cards

These days, features, benefits and rewards are part and parcel of both the debit and credit cards. Institutions like Bank Simpanan Nasional have come up with debit cards that have all the same characteristics of the credit card except the usage fees attached.

According to Winston E. Jeyaprakash, deputy chief executive (retail banking) at BSN, the main strategy involved when developing debit cards is to have a card that combines both functionality and practicality so that customers can enjoy the benefits and also the convenience of using them.

This strategy paid off for BSN as its Visa debit card won The Most Innovative Product award from Visa.

Harnessing loyalty

Loyalty cards and store cards are an integral part of an urban shopper’s wallet. These days, many stores offer loyalty cards to their customers. The purpose of most of these store cards is to create loyalty and reward its long-standing customers.

There are many ways stores can do this: l Partnerships across non-competing stores. Non-competing stores could be stores under the same management or two or more individual stores that have agreed to have the same loyalty card and rewards programme. Integrating one card for point accumulation and rewards draws in more loyal customers and also makes the customer feel like they are part of a large shopping family.

l Solving industry pain points. Pain points are burrs in the customers’ sides. For example, sometimes customers are unable to keep track of the amount of points they have and their expiration dates, especially if they have a number of loyalty cards. As a result of this, points are sometimes not used or redeemed. Another issue is the inability to use the same card in international branches.

l Upgrades at marginal costs. Birthday treats, souvenirs, discounted parking fees and a host of other things are offered to the customer. These little gestures add value to the card by making the customer feel special. Oftentimes, these little upgrades cost very

little and on some occasions, nothing at all. This is why many of them do not mind doing it.

l Rewarding more profitable customers. The customers who spend more at a store are singled out for rewards, special attention and other incentives.

Going beyond the point

With the variety of loyalty cards and credit cards that have been made available in recent years, the card culture has gone beyond the regular point-based system.

In addition to the points that consumers accumulate, there are other rewards as well.

These include travel miles, savings on petrol and groceries, cash returns and so on.

Some rewards are specifically catered to consumers’ lifestyles with offerings such as golf privileges, dining discounts or even discounts on travel accommodation.

Then there are also redemption flexibilities, reduced interest rates, no expiry options and so on.

Consumers should think beyond the normal concept of loyalty cards and credit cards and choose a differentiated experience to suit their liking.

The card we depend on

Another card to have in your wallet is your medical card. These cards are vital in emergencies and are typically used only for its intended purpose – when you get admitted at the hospital.

Nowadays, medical cards have insurance schemes with a returns policy or an investment scheme linked to them. Because of rising needs and the variety of options made available to consumers by institutions, insurance schemes have evolved to double up as a savings or investment accounts that snowball over time, allowing card holders to save up a substantial amount of money.

This investment account does not allow the holder to withdraw money like a regular savings account and withdrawals will involve some form of paperwork.

This scheme works by separating the money into two portions. One portion is put towards insurance and the other is towards investment. This is an excellent solution for consumers as it caters to the needs of consumers of different income levels. Those who are not able to afford regular investment schemes now have the option to have themselves medically covered and also to use a portion of the funds as savings.

A point to consider, especially for Malaysians, is the fact that there could be more insurance options for them in the future.

According to Forbes magazine, telecommunications firms, home security companies and other multinational companies are tapping into the insurance market, with many of them already becoming serious competitors.

In some parts of the world, such as in China and across Europe, non-insurance firms are offering insurance packages to their loyal customers. Hence, consumers can now choose to have their insurance plans tailor-made to suit their lifestyle, habits and wallet.

Plastic-savvy consumers

Making your cards work for you is an art that requires careful planning and scrutiny of all its features and attachments.

Instead of just collecting them and letting them create dents in your wallet, use them to ensure savings and protection in times of trouble. Get smart with the plastics in your wallet and you can be making inroads in realising your financial potential.

Make these cards count, as it is only a matter of time before they will be replaced by something virtual and integrated like the microchip.

The future will probably see the abundance of cards being merged into a single unit that manages our shopping, credit and transactions.

For now, smart usage of the card culture is the consumers’ best bet.

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StarSpecial, Sunday 10 August 2014 MONEY & YOU 3

Canadian property investmentsfor MalaysiansNEW and imaginative ways

of enhancing wealth are welcomed by investors.

One such scheme is property development. This typically works where developers put up a part or whole of the acquired property as collateral for investment and then bank on the rise of the developments’ value.

Canada-based Terra Firma Development Corporation (TFDC) is one such property development company, and its newest investment is the Forest Lakes Country Club Developer Investment Scheme (FLCC DIS).

Launched in April 2012, Malaysia’s first overseas resort development investment scheme is approved and regulated by the Companies Commission of Malaysia. It offers individuals and institutional investors a safe platform from which to develop their wealth within a medium-term timeframe of less than five years.

William Ng, chief executive officer of TFDC Asiacorp Berhad, a subsidiary of TFDC, says the investment fee now stands at CAD12,000 (RM35,000) with the scheme expiring in March 2017. This scheme opened at CAD8,640 (RM25,200) per unit of interest plot in 2012 and those

who made investments will now see an increase of 77% on their investment.

Five hundred interest plots were made available in 2012 and only about 150 of them are left. Participating investors will now enjoy fixed exit returns of up to 28% (or more than 10.4% per annum) before the fee is expected to be revised at the end of the third quarter this year.

“Each interest plot is backed by one tenth of an acre of collateral secured by a licensed trust company. You have full investment protection,” Ng explains.

This means that the 500 units that were put up are insured by plots of land – one unit to a tenth of an acre. The global luxury real estate development project is located in Nova Scotia, Canada. The need for residential areas outside the capital city grew with the increase in population and multinational companies.

Halifax, the capital of this province, has seen robust economic performance in the last decade. The city thrives on maritime activities with shipbuilding, ports, fisheries and also agriculture as the main sources of growth for the province.

The FLCC is only 30 minutes away from central Halifax and the Halifax International Airport, guaranteeing a rise in population and infrastructure in the near future.

The site, which was acquired by TFDC in 2007, was re-zoned in 2008 to permit mixed resort development, including luxury condominiums and residential plots, which will be released this year by TFDC Asiacorp Berhad.

The site will soon boast a Nicklaus Design golf course (an international golf course design firm by golf legend Jack Nicklaus), athletic and sports facilities, a luxury boutique hotel, an

international business centre and a host of other amenities at the disposal its residents.

“A unique feature of the development is that only a small part of the development has been put up as collateral to raise capital,” says Ng.

The developer retains most of the development, pushing them to complete the project in order to maximise their own gains from it after maximising their investors’ gains. Because only a small part of the development is put up for investors, the remaining areas are invested in by the developer.

Ng adds that the investment is hassle free as there are no additional costs, bank interests or hidden fees.

He adds that investors are given a choice of a cash exit or a property exit where they are able to exchange their interest plot (units) for cash or for a building plot or a condominium at a fixed value of CAD15,322 (RM44,700) per unit as determined by an independent valuer.

Ng also says that investing in real estate is ideal because the value of the land in which the project sits multiplies progressively as each milestone of the development is achieved.

The development has gained momentum, with trunk and ancillary roads built. The next phase is building model homes and visitor lodges.

The housing boom anticipated to stem from the federal government’s CAD25bil (RM72bil) shipbuilding contract that was awarded to Halifax has already attracted buyers from more than 40 countries.

Ng adds that TFDC Asiacorp Berhad is also introducing limited units of housing plots with a unique guaranteed resale with returns of between 30% and 48% within the next two to three years.

William Ng, chief executive officer of TFDC Asiacorp Berhad.

The value of collectible coins increases with time.

Always ensure the authenticity of an antique before investing in it.

The development includes model homes, which ore still under construction.

Turning passioninto wealthSOMETIMES, your hobbies can be an additional source of income. When you invest in art pieces and antiques, they can sometimes provide you with great returns. Here are some collectibles that have the potential to make you money in the future.

Art pieces

If you intend to purchase art pieces, do some research on the artist and the piece itself. Art pieces that were produced between the 1860s to the 1970s are known as modern art.

Modern art rejects the traditional forms and conventions of art. Instead, it covers a wide range of movements, theories and attitudes that showcase art in a more current social and intellectual context.

Postmodern art is described as the art movement that rejects all aspects of modern art and it aims to do away with the divisions between art, pop culture and the media.

If you intend to invest in art, invest in the pieces of upcoming artists.

Their pieces will generally be cheaper than those of well-established artists and have the potential to fetch a hefty sum in the future. Antiques

Antiques can be anything from furniture to ornamental objects that were made more than100 years ago.

Investing in an antique piece can sometimes be risky so it is best for you to ensure the authenticity of the antique piece and its dealer.

The money-making process with antiques takes time and patience as an antique piece becomes more valuable with age. So if you intend to make a quick buck, this is definitely not the way to go.

Coins

Coin collecting is a very exciting hobby. It is fascinating, informative and also exposes you to new cultures, history and art. The Internet is a great forum in which to look for coins and it can provide you with a wealth of information on your coins.

You can also use guide books to gauge the value of your coins. Photographs in books and online will help identify the coins and ensure that they are not worthless.

Like art and antiques, the value of your coins increase with time provided they are in mint condition. The slightest scratch on a coin can depreciate its value.

Stamps

The stamp market is one that is rather volatile and the prices of stamps can increase and decrease rather dramatically.

Stamps that are in good condition will of course be more valuable than those in poor condition.

While the supply of stamps are fixed, the demand for a stamp can increase based on its rarity.

It is advisable to buy stamps that are on discount and then sell them later on for a profit.

There are many websites such as eBay and stampez.com that hold auctions on valuable stamps.

Before purchasing your stamps, always ensure that you have carried out your research. This will ensure that you are investing in stamps that have value.

When you are ready to sell your stamps, you can engage prospective buyers by placing advertisements in newspapers, magazines or websites.

StarSpecial, Sunday 10 August 2014 MONEY & YOU 4

Maybank Islamic MasterCard Ikhwan Card-i is an innovative offering that empowers consumers to use financial tools such as credit cards wisely and make informed financial decisions in their daily lives. In line with Maybank Islamic’s mission of “Humanising financial services”, Maybank Islamic MasterCard Ikhwan Card-i affords the opportunity to customers to give back to the less fortunate with every spending. Each time the cardholders spend, the bank will contribute a portion of the amount spent to charity. Cardholders can also stand a chance to win an Umrah Package for two, which is awarded to one winner per week. Additionally, enjoy 5% cash back on petrol and groceries every Friday and Saturday.

Highlights of Maybank Islamic MasterCard Ikhwan Card-i

Other benefits of Maybank Islamic Ikhwan Card-i

5% cash back on petrol and groceriesWith the 5% cash back offer, there are more reasons to spend using the card every Friday and Saturday, with a capping amount of RM50

per principal card member per month.

Umrah PackageConsumers can now begin their spiritual passage by spending a

minimum of RM200 in a single receipt. Cardholders will be eligible to win Umrah packages for one weekly winner (a pair).

Spend and contributeCardholders can now contribute to charity. With each

transaction, the bank will also contribute to charity and less fortunate communities.

Summary of other Maybank Islamic Ikhwan Card-i

Up to 5x TreatsPoints for every RM1 spent

Convert TreatsPoints to Enrich Miles or KrisFlyer Miles points, 4,500 Treats Points = 1,000 Air Miles

Golf privileges

Priority pass for the airport lounge

Up to 8x TreatsPoints for every RM1 spent at Petronas stations

8x TreatsPoints for groceries purchases every weekend

Redeem TreatsPoints for Petronas petrol vouchers

Maybank Auto PayBillsAutomatic bill payment facility that

conveniently charges your bills to your credit card when they are due.

No annual feeFree for life, with no conditions.

Non-compounding chargesSave on non-compounding charges.

Maybank EzyPay0% charges instalment plan up to 24 months when you pay for products or services with Maybank Islamic Ikhwan

Card-i at selected merchants.

Maybank CashTreatsGet cash hassle free with Maybankard Cash Treats.

No documents are required and the approval process is fast.

• Up to 36-month repayment period• Up to 90% of available credit limit

• No forms or guarantor required• 8.88% per annum

Maybank Islamic EzyCash-iEnjoy instant cash from your available credit limit and have it converted to an instalment plan with 0% charges with just one phone call or an application

through Maybank2U.

Maybank Balance Transfer ProgrammeSave on charges when you transfer your other credit card

balance over to your Maybank Islamic Ikhwan Card-i.• Flexible tenure of up to 36 months

• Minimum transfer amount of RM1,000, maximum of RM50,000 per transaction

• 0% per month for a 12-month tenure

Maybank EzyPay PlusEnjoy the convenience of converting your purchases to

an affordable monthly instalment for minimum purchase of RM500 in a single receipt.

• Flexible tenure of up to 24 months• Maximum of a RM30,000 purchase in a single receipt

• 3% per annum for 10 months tenure,valid until Nov 18

CardCare Takaful PlanYou will enjoy ease of mind with CardCare

Takaful Plan coverage of up to RM100,000 and until 65 years of age in the event of an

unfortunate incident (upon death or total permanent disability).

Credit cardpackage witha humantouch

Maybank Islamic Ikhwan Visa Infinite Card-i

Maybank Islamic Ikhwan Visa Card-i

24

StarSpecial 5Sunday 10 August 2014

StarSpecial, Sunday 10 August 2014 MONEY & YOU 6

Moving towardscashless transactions

IN this age of technology we are exposed to many digital marvels that have significantly

improved the way we live. From phones that warn us about possible traffic jams to grocery stores that predict consumer behaviour, technology has become a major influence in our lives.

Technology is also changing the way we pay for goods and services, with the debit card taking over from cash in a big way.

A debit card allows consumers to purchase items without having to carry cash.

The debit card has come a long way since it was first introduced and many debit cards now offer the same benefits and features as its counterpart, the credit card.

More and more financial institutions are promoting the use of debit cards as it encourages consumers to be savvier with their spending. Because of this, many financial institutions are investing their efforts into enhancing the features of their debit cards.

BSN was among the first local banks to issue Visa Electron debit cards in 2002. In December last year, BSN launched the BSN Visa Debit Card, the first multi-privilege Visa Debit card featuring Visa payWave functionality to be introduced in Malaysia.

This debit card, with payWave contactless technology, (a device used by retailers that allows users to wave their card over it, which automatically debits their account) provides a quick way to pay for purchases under RM150 without the need for PIN numbers or a signature.

As at June this year, more than 500,000 new BSN Visa Debit Cards have been issued.

“The card offers convenience, rewards and also encourages people, especially the younger generation, to be debt-free. It can be used for everyday purchases such as groceries, for petrol, shopping and dining anywhere the Visa

or Visa payWave logo is displayed, both locally and overseas

“It can be used for online purchases, mail order or telephone order purchases with no extra

charges or fees being imposed

on such transactions. It also functions as

a regular ATM card and consumers can make

withdrawals at any BSN ATM, MEPS ATM or overseas ATM that displays the PLUS logo,” says Winston E. Jeyaprakash, deputy chief executive (retail banking) of BSN.

As at June this year, BSN Visa Debit Card spending generated a total transaction value of more than RM100mil.

The bank is expecting to issue one million debit cards by the end of this year as it estimates a 60% increase in spending growth among consumers.

Although BSN wants to harness this spending pattern among consumers, it still believes in promoting better spending habits among its patrons, which is why the card has all the added features.

In line with Bank Negara’s vision of creating a cashless society, debit cards encourage

consumers to spend responsibly as the cards are linked directly to the consumers’ savings accounts.

This allows consumers to manage their finances, be more conscious of their spending and in the long-run, encourages them to be debt-free as it reduces their dependency on credit-based spending.

Although credit-based spending has been the main choice for consumers in the past, these days many consumers are opting for solutions to help them curb their spending habits.

BSN Visa Debit Card is also an excellent tool to help consumers keep track of and control their spending. The card comes with Touch n Go and PLUSMiles features that users can use during their daily travels. Customers are also allowed to set a purchase

limit that they are comfortable with to help curb impulse buying.

Another feature of BSN’s debit cards is its 0.5% unlimited cash back for all retail purchases. When consumers use the card, it translates directly into extra savings for them.

The cash back is credited directly into their savings account on a monthly basis.

In addition, BSN also holds tactical campaigns that offer cash back or cash prizes to consumers that double as additional savings.

As BCARD is one of BSN’s partners for the BSN Visa Debit Card, it is able to offer attractive discounts that users can take advantage of and at the same time, collect reward points.

Partnering with merchants is another strategic move that BSN has taken to gather existing consumers and attract potential consumers into its circle of loyalty.

Consumers will be drawn to collecting points across merchants as they may want to shop in different stores.

Leveraging on the success of this card, BSN recently introduced the BSN Batman Visa Debit Card, a must-have limited edition Super Hero debit card for fans of DC Comics’ Batman.

This limited edition BSN Batman Visa Debit Card is available in three exclusive and attractive designs.

It was introduced in conjunction with the 75th celebration of Batman and is issued in collaboration with Visa International and Warner Brothers.

Similar to the generic BSN Visa Debit Card, the limited edition BSN Batman Visa Debit Card is linked to the BSN savings account.

Cardholders will enjoy benefits and features such as Visa payWave, 0.5% unlimited cash back and the BCARD loyalty programme, combined in one debit card.

It also comes with special merchant discounts and privileges.

In conjunction with the launch of the limited edition BSN Batman Visa Debit Card, BSN is running a campaign that will go on until Sept 30.

Card members who sign up and spend a minimum of RM50 with their card will stand a chance to win a grand prize of a five-day, three-night trip for four people to the Warner Bros VIP Studio in Los Angeles, as well as other exciting prizes.

“With BSN Visa Debit Cards, our customers get to enjoy the best of both worlds. They can enjoy the benefits and offers that come with the card and at the same time they will learn to manage their finances and spend only what is within their means,” says Winston.

The BSN Batman Visa Debit Card is now available at all BSN branches while stocks last.

n For more information, visitwww.mybsn.com.my

From left to right: Ahmad Latfan Mohd Amran (deputy chief executive, Corporate Support), Mohd Sofian Amiruddin (head, Cards Business Division) and Ng Kong Boon (Visa country manager).

About the BSN Batman Visa Debit Card

Perks of the BSN Batman VisaDebit Card:

• 0.5% unlimited cash back• Shop, wave and go with Visa payWave• Swipe, collect and redeem BPoints• Shop online and pay bills • Withdraw cash both locally and abroad• Transfer funds• Enjoy up to five free MEPS cash withdrawal fee per month*• Annual card fee waiver*• Track transactions via mybsn.com.my• Worldwide acceptance*T&C apply

Security features on the BSN Batman Visa Debit Card/-i:

• EMV (Europay, MasterCard, Visa) Smart Chip: Uses an advanced smart chip technology for greater security.• Visa payWave: The card never leaves your hand when making transactions, which reduces the risk of fraud.• Visa’s Zero Liability Policy: Protects you against any fraudulent or unauthorised purchases.

On top of the features, BSN Batman Visa Debit cardholders can also enjoy these exclusive discounts and privileges:

• Additional 5% cash back for Visa payWave and online transactions (valid until Sept 30)• 10% off normal priced items at DC Comics Superheroes Outlets (valid until June 30 next year)• 1 free GSC movie ticket every Saturday (via GSC online e-payment and valid until Sept 27, while stocks last)• 15% off Singapore Cable Car DC Superheroes ticket (valid until Sept 30)• 20% off Langkawi SkyCab Ride Ticket, 10% off at 6D Cinemotion and SkyBoutique (valid until Sept 30)• Buy 3 free 1 Berjaya Times Square Theme Park ticket (valid until Sept 30)• 10% off at Kenny Rogers Roasters Restaurants (valid until Sept 30)

Winston E. Jeyaprakash, deputy chief executive (retail banking) of BSN.

StarSpecial 7Sunday 10 August 2014

StarSpecial, Sunday 10 August 2014 MONEY & YOU 8

Easy ways to fund your travels

Canada offers great economic stability and stable currency. A $25 billion shipbuilding contract in Halifax, Eastern Canada is fuelling economic growthand massive demand for property. Forest Lakes Country Club, a premium resort development located 30 minutes from Halifax International Airport ispoised to capitilise on this opportunity and is already attracting investor from more than 50 countries worldwide.

- Strategically located premium developmentset in stunning woodlands

Come and learn about: - Capital appreciation with a unique guaranteed sellback option to the developer

Exclusive to our first public release in Malaysia we are offering very limited plots in Phase 1. Our earlier international releases to our Malaysia investors were fully sold.

Affordable: starting from CAD$75,000Strong property appreciation: expected to grow 10% p.a over the nextfew yearsNow launching Phase 1 - Huge potential for more capital growth.Next release coming soon - condominiumsNo legal feesResidential, commercials, recreational, hotels and the only NicklausDesign golf course in the regionWithin 30 mins of award winning International Airport, downtownHalifax and 6 renowned universities

Register for this exclusive launch below:

+6-012 215 9308 (Kuala Lumpur)+6-012 477 9308 (Penang)with Name/(s) and Seminar 1 code #1030# / Seminar code 2 #0230#

High Return Property Investing in Beautiful Canada

CAD$25 Billion federal shipbuilding contract to fuel the local economy andboost massive housing demand$6.2 Billion Hydro power project$960 Million natural gas production$971 Million Shell offshore oil explorationAlready a tourist magnet with further “... potential to become a majorbolt hole to the large east coast cities” in North America(*Savills World Report 2014)“Halifax is emerging as one of Canada’s top investment cities...”(*Top Canadian Investment Cities 2012-2014, The Real Estate Investment Network Ltd)

Kuala LumpurTime : Seminar 1 starts at 10.30am

PenangTime : Seminar 1 starts at 10.30am

TFDC Asiacorp Berhad(852688T)

Introducing the launch of residential plots at Atlantic Canada’s most premier resort destination with excellent capital appreciation of 30 - 48% in 2 - 3 yearsvia a guaranteed developer resale. Be the first to own a residential plot in Forest Lakes Country Club, a premier mixed development for four seasons.

Four Seasons, One Stunning Location

Find out how this premium mixed development differs from the rest : Located in Nova Scotia, an upcoming property hotspot :

To register, please SMS to:Attendance: Strictly by registration or VIP invitation

MANY people dream of a backpacking trip across Europe with their best

friends. It is possibly on your bucket

list as well but the challenge lies in funding the trip. If that is your concern then fret not as here are some sure-fire ways to build up a travel fund.

Create a passive incomefor yourself

Your passive income should not interfere with your day job. Instead of saving money, generating income passively is a more proactive method of accruing funds.

Investing in stocks, bonds and annuities are common and effective avenues to have a passive income. Hiring a financial advisor is strongly recommended.

You might also want to enrol in a few finance classes to understand your advisor when investment strategies are discussed.

These sort of financial investments potentially pay handsome dividends if planned well.

Brown bag it

You will be surprised at how much money you actually spend on food and beverages. Bringing a packed lunch and a flask of coffee from home will save you a lot, possibly even a hundred ringgit or more every month.

Want to enjoy a scrumptious dinner with a loved one? Cook for them. It is cheaper and oftentimes more sentimental.

Besides the economic benefits, you get an added bonus of a healthier diet.

Staying home is fun

Before you roll your eyes at how boring this sounds, let’s examine several facts about going out.

Restaurant meals are costly, travelling costs money and the sheer temptation to shop recreationally will be omnipresent. This does not mean that you should live your life like a hermit.

Learn to enjoy staying at home by identifying things you love doing indoors, be it reading, watching movies or even playing fun family games.

Give up your wants and focus on your needs

Stop and take a moment to think about how little we can actually get by with.

Do you really need to replace your smartphone that you bought seven months ago? Do you need to have that pretty little dress? Chances are you do not.

By exercising this awareness, you will be able to cull a very common yet dreaded symptom many suffer from – credit card overuse.

Splurging unnecessarily is bad enough but having debts with a

credit card is worse as millions of people can attest to the slippery slope of financial incapacitation.

View this as a deterrent to spend needlessly and a motivation to cut back for savings.

Adopt a minimalistic lifestyle. Our possessions consume more of our time than we realise. Learn to see less in materialism and resist buying things that you do not need. You can assess your spending by keeping tabs in an accounts book and eliminate monthly items that you do notneed, thus cutting back on spending and saving money inthe long run.

A little discipline goes a long way in saving for your travels.

Sell your talent

If you are great at something, then take advantage of this talent and charge people for it. You could try being a videographer at weddings, sell cakes for parties, write articles for a magazine or fix computers.

The trick is to make your skill known so take the initiative to put yourself out there.

With everything put into practice, you will be gliding across the waters of Venice and taking selfies at the Eiffel Tower before you know it.