Category Archives: Frugal Tips

Guest Post: How to Get The Most Out of Your Travel Money

Posted on May 15, 2013 by | Leave a comment

So you’re in the beginning stages of planning a trip of some kind, and you have a certain budget set for doing so. However, you’re a little frustrated or disappointed with how much you are able to spend. Want to know how to get the most out of your money? Read on to find out!

Consider Accommodations
When booking a hotel, resort, hostel, homestay or anything really, think about what you really need. For example, if you’re planning on being out of the accommodations for the majority of the day and night, then you don’t need to choose the ritziest place in the area. Instead, opt for a moderate hotel that is clean and comfortable. Regardless of the amount of time you plan to spend at the establishment, find places that include breakfast to help cut back on some of the cost.

Buy Tickets Ahead
Chances are, you are going to attend at least some tours, shows and other events that require tickets. Try to get your tickets ahead of the event online. When you go in person right before the event starts, you could wind up paying some of the highest price. Of course, you also take the chance that it will be sold out entirely. However, when you look online first, you can often find coupon codes to help you out.

Bringing/Cooking Food
Meals probably wind up taking a huge chunk out of your budget when you’re traveling. Before embarking on the journey, try to stock up on some snacks you want to keep in the hotel and in your bag as you are traveling. Doing so can help to prevent you from spending extra and unnecessary money on food. You’ll know that you have snacks back in the hotel, so you can just eat those many of the times when hunger starts to kick in. If you have a room with any sort of cooking tools, be sure to use those to your advantage!

Necessary vs Unnecessary
As you’re looking at the various things you can do on the trip, you really need to figure out what’s necessary and what is not. For example, let’s say that you want to go on this helicopter expedition over the waters, but you find out that it costs a lot of money. You need to weigh out your options. Would you rather do this expedition or four or five other smaller ones that will amount to the same cost? Often, when you ask yourself what it is that you would rather do, you get a much clearer answer. Whenever you are unsure whether something is worth the money, compare it with other activities to see the bigger picture.
Travel is expensive, even if you are not going far. You need to factor in all of the costs from gas to every meal when you are creating a budget, and these tips can help you stick to it!

Pete Brock writes about his adventures living and learning abroad. His recent work is about earning an online masters in psychology while living in Europe.

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Posted in Frugal Tips, Guest Post, Travel

Guest Post: How To Be Frugal And Financially Independent

Posted on May 5, 2013 by | Leave a comment

Learning how to be frugal and financially independent is really just one task. This is because if you can manage your money effectively, you will rarely need the assistance of others. The key to doing so lies in recognizing the agonizing need to consume that most people have. Although spending money is essential for survival, you will have to quickly learn the difference between needs and desires if you want to be absolutely self-reliant.

Go Without

Choosing to limit your purchases and your consumption is one of the easiest ways to bolster your future and to keep yourself independent of any outside financial help. This does not mean starving yourself, or washing your clothes, hair, dishes and car with a single bottle of generic soap. Instead, it means denying yourself many of the excesses that most people have come to expect and accept as normal. Rather than dashing of to a costly lunch with your co-workers, start packing a bag lunch instead. Stop ordering in and commit to cooking each night. Learn how to enjoy a movie on your sofa, rather than paying for expensive theater tickets.

People who commit themselves to appreciating what they already have, tend to get a lot more enjoyment out of their lives than those who do not. There are a lot of consumers who spend exorbitant sums of money on takeout meals, even when they have food wasting away in their refrigerators. Learn how to be content with what your budget can buy and you will never overspend yourself beyond your ability to remain financially free.

Keep A Spare

It’s important to have spare money in the back of your wallet that never gets touched until emergencies arise. This is a lot like keeping a spare tire in the trunk of your car. If you get a flat, you can simply pop your trunk and have the spare tire put on. When you drive around without a spare or any other solid back-up plan, you will normally wind up having to rely on others to get you off the side of the road.

A spare greenback, whether it be a twenty dollar bill or a hundred dollar bill, will help you to avoid having to reach out for assistance when problems arise. It will also train you to stop living from check to check, by getting you in the habit of having money left over when your next payday rolls around. While you might be tempted to use a credit card for emergencies, cash will allow you to take care of urgent expenses, without committing to ongoing payments and interest.

Cut Back Regularly

By regularly taking a step back from your life and looking for areas of neglect or waste, you can be sure that your money is serving you best. For instance, if you have a gym membership that you are not using, you should either start going to the gym or make a diligent effort to cancel this membership. Pare back your cable package from time to time and always be on the lookout for new deals. While certain channels and services might seem appealing when you first sign up, after several months of not watching these things or taking advantage of them, you may want to start saving more cash instead.

Stop Consuming

Take calculated breaks from consumption as often as you can. Most people are surprised at the emptiness and sense of loss that a break from spending money can produce. The average individual is pushed by countless ads to regularly spend cash and thus, when there is a purposeful cessation of consumption, some individuals can feel very out of sorts.

In reality, the average person should be able to go at least one full week without entering a store and buying anything. You should be able to make your coffee at home rather than stopping by the local cafe each morning. Making a quick stop for toilet paper or gas is certainly fine to do, but you must fight the urge to pick up one of the impulse buys that are stocked near the cash register. Spending a dollar here and there on lottery tickets, a new car freshener or bottled water, will certainly add up. When you commit to staying out of the store as much as you can for a set period of time, you can recognize and confront the outlandish impulse to consume that nearly every modern individual has. This is a great way to keep more money in your pocket and to become a habitual saver.

Although the rising costs of living have made it much more difficult for many people to remain self-reliant, certain lifestyle changes can offset the impact of these increases. Rather than attempting live beyond your means, you must learn how to fully enjoy the wealth of goods and services that you already have. A few moments of gratitude and a willingness to pull away from the consumption-oriented mindset that is built and lauded by major corporations, will allow you to avoid debt and stay absolutely independent of others financially.

Jonah Rogers writes about his career in finance, accountancy and entrepreneurship. His recent work is about the Top Business Degrees, based on first-hand experience

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Guest Post: The Frugal Expat’s Guide to Moving Back to The Philippines

Posted on April 30, 2013 by | Leave a comment

Lived the good life in UAE and now planning to move back to the Philippines? Make sure you have a plan for going about it, as otherwise it can prove to be an expensive affair. Ideally, you should start preparing a few months in advance. Follow these steps to ensure that you have a smooth transition without breaking the bank.

1) Decide what to take back and what to leave behind

Only when you know what and how much stuff you are carrying back can you decide how to transport it to the Philippines. Remember that you pay according to the weight and volume of the things you take back, whether you are sending it via courier, excess baggage or by ocean freight.

Here are a few ways to keep the weight down:

Downsize your wardrobe

A good size wardrobe weighs more than you think. You can dispose or giveaway items of clothing and footwear that you no longer use or have gone out of fashion. The local Red Crescent Society will be happy to receive your old clothes.

Sell unwanted furniture

Heavy pieces of furniture adds a lot of weight to your shipment to the Philippines. Therefore, consider selling heavy furniture, carpets, work tools, fitness equipment etc by advertising in the National or Gulf News classifieds.

Pack smart

There are certain items like perishable goods, food etc that you would need to carry on-person while travelling. So maximize the checked-in baggage allowance available to you. Refer to the article on minimalist packing for useful packing tips.

2) Manage your moving costs

Now that you have decided on the things you are taking back, you can now decide on how to go about it.

Carry as excess baggage

If all you have is a couple of extra suitcases, then you can take them along as additional checked-in baggage. Check the cost of additional baggage for your airline on FareCompare’s list of baggage policies for all major international airlines.

Hire a competent international mover

In case you have quite a bit of things to move, then you might have to use the services of an international mover. Ocean freight, although much slower than air freight, is way more easy on the wallet.

Ask for an all inclusive door-to-port quote to your location in the Philippines. This works out cheaper than a door-to-door quote. You can then engage the services of a clearing agent in the destination port to clear your belongings with customs and deliver to your address in the Philippines. Compare quotes from at least 3 international movers before you make a decision.

Buy air tickets well in advance

Try to avoid moving during the holiday season when the cost of air travel is the highest. Skyscanner has a smart feature that lets you scan airfares from the UAE to the Philippines across the whole calendar year. Mid-week connecting flights usually work out the cheapest.

About the writer: Tishana is an international move specialist with FeedbacQ, a platform for expats and returning expats to connect with best value, quality-verified international movers. If you have any queries regarding international relocation, she would be glad to help.

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Guest Post: Frugal Living When You Are Not at Home

Posted on March 31, 2013 by | Leave a comment

With a large percentage of companies reducing relocation reimbursements to their employees over the last several years, living overseas is not as cost-effective as it used to be. However, there are still plenty of ways in which expatriates can reduce their living expenses. Cutting unneeded expenses is crucial for saving money. Here are several ways to help you limit redundant spending.

Budget your necessary expenses. Whether you are living in your home country or abroad, the single most important thing that you can do to save money is to create a budget. Consider only the things that you actually need. You should budget for rent, food, utilities, phone, vehicle expenses and insurance. Luxury expenses, entertainment, alcohol, and tobacco are not necessities; and, they should not be included if you are trying to save money.

Spend your money wisely. Check the local newspaper for coupons and advertisements. You can save a considerable amount of money, if you just spend a few minutes every day doing this. Checking your junk mail for regional discounts is another good idea. Furthermore, if you live like the localized people do, you will spend far less. Eating the regional food, wearing the sectional clothes, and using the local products will be much easier on your wallet. If you have products sent to you from your home country, you will pay more for them now than you did before.

Check the classifieds. By checking the local classifieds, you might find used cars, used and second-hand home furnishings literally at next to nothing.

Get to know your neighbors. Introducing yourself could go a very long way when it comes to saving money. You never know when somebody you meet might just have a friend who is desperately trying to get rid of that car that you need. Furthermore, getting to know the local business owners might just get you some fairly decent discounts.

Get rid of what you don’t need. If you have less stuff to store, then you will require smaller housing to accommodate you properly. Also, selling your useless things will give you extra funds, just in case you are tempted to eat out or go to a movie, which should not be in your budget.

Even though the cost of living is catching up in most places, you don’t have to spend more money on things you don’t need. Hopefully, these money-saving tips will help you wherever you may find yourself.

About the Guest Author

Kim Sontoya is a professional blogger and writer. She writes for many online establishments and supports those ones that offer practical lifestyles to consumers. As a frugal living and emergency preparedness advocate, she recommends DailyBread.com for budget conscious individuals who want to get big savings in shopping for food storage and emergency supplies

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A One Night Event, A Nightmare of Expenses

Posted on March 3, 2012 by | 4 Comments

It is quite odd but I abhor social functions related to my job. Actually, it is better for me to spend my time with my friends and family than flashing my smile and cordiality to strangers.

Anyway, I would say that I have been successful in escaping these social events but last week I decided to attend. It would be my last event because I resigned already.

It was a formal event and we were required to dress up. Thus I was compelled to buy a black cocktail dress. In addition to that, I had to spend for the accessories and to the beauty saloon.

Honestly, I was really stressed with that event and I detested it more because I shelled out a good amount of money. I could have added that amount to my investment.

Indeed it was a nightmare of expenses for a one night event.

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The Cost of Procrastination: A Hefty Fine!

Posted on February 12, 2012 by | 1 Comment

Emirates ID is mandatory to all residents (expatriate and nationals) here in UAE. The ID has an electronic chip and it stores information such as name, date of birth, gender, marital status, ID number, fingerprint data, etc.

Its validity is coterminous with our residence or employment visa. I renewed my visa last March 2011 and ideally I should renew my Emirates ID too that time. The initial process of our Emirates ID was quite a nightmare because there were long queues. Because of what I experienced, I was just too lazy to process the renewal.

Then last December my colleague notified me that starting 2012 there will be fines for late renewals or applications. In end of January I renewed my Emirates ID. I was quite confident because the fines for Abu Dhabiresidents will start only on 1st of April.

Actually I was amazed because the processing now is fast and efficient. It took me only 15-20 minutes.

Anyway, after 2 days I received a sms advising me to visit again the Infinity Services, the agency that processes the renewal and applications of Emirates ID inAbu   Dhabi. Then I was informed that I had to pay the fine of AED 580 because of late renewal.

I came to know that I was fined for AED 20 per day since 1st January because I am holding a government visa.

Really, I felt bad for paying such a hefty fine but I had no choice.

Lesson learned – avoid procrastination!

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Posted in Finances, Frugal Tips, Life in Abu Dhabi

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Western Union vs Bank Transfer Remittances

Posted on February 2, 2012 by | Leave a comment

Long queues are always expected every end or beginning of the month in money exchange centers here in UAE because we, working expatriates specially Asians, are sending our remittances back home for our family and love ones.

Last week I sent remittances too, one for my family and the other for my hubby’s parents. I have never been really so keen on sending remittances through Western Union because its fee is expensive compared to the bank transfer.

Of course, I understand that with Western Unionwe are paying the speed of the transaction. It’s an instant transfer and your family back home can immediately collect the remittances five minutes after you send it. While the banks, it generally takes 24-48 working days to credit the transfer in the bank account.

Another plus factor withWestern Unionis the accessibility. You can collect the remittances back home almost anywhere. There are so many shops and stores affiliated withWestern Union. Unlike with banks, remittances can be withdrawn only through the ATMs or over the counters.

Western Unionis ideal for urgent situations where money is needed immediately. Otherwise, I still opt for the regular bank transfers because the fee is only AED 15 whileWestern Unionis AED 35.

We always send our remittances to my parent’s hubby through Western Union but l really never realized the big difference until last week. After completing my transactions in the money exchange center, I took the receipts and sat in my car. I was wondering why it seemed I paid more for my hubby’s remittance than for my family.

So, I was scrutinizing the details of each receipt and eureka! I found the answer. The exchange rate inWestern Unionreceipt was only AED 11.48 while in the bank transfer was AED 11.65.

I got out from the car and verified this to the teller in the money exchange center. And I heard the confirmation.

When sending money through Western Union, the exchange rate is always lower than the current one while sending through bank transfer, whatever is the prevailing exchange rate (during the time you send the money) will apply.

So think again when usingWestern Unionfor your remittances!

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Posted in Finances, Frugal Tips, Life in Abu Dhabi

Getting Rid of Bad “Spending” Habits

Posted on January 6, 2012 by | 6 Comments

I am glad that somehow I passed already the stage of ignorance about personal finance. I mean, I am not an expert on that subject but I would say that I am better now on it compared two years ago.

Thanks for the tons free online reading materials about personal finance. My goal is to be debt free and to establish passive source of incomes. I am not yet there but it is on the process. It takes time get rid of old and bad “spending” habits.

I have been working on my “financial freedom” goal for the last two years. It takes a lot of discipline and sacrifice.

Compulsive Buying. Sometimes it is just difficult to ignore the red “SALE” tag. It is like a magnet. When I am in the mall and I see a “SALE”, I cannot resist the urge to rush and to look around. I have always this hope to find something really nice at a very reasonable price.

Now I still shop but only for my “needs” although occasionally I cave in to buying my whims. Before I hit the mall, I already have the list on what I need to purchase. In this way, I avoid compulsive buying even it is a sale.

Cash Diet. It is not an easy journey but possible. I closed all my credit cards last year. Now I am only keeping prepaid card because I need it sometimes for online purchases.

 

If you do not have discipline, then credit cards can be destructive to your personal finance health. When you are spending and you are using credit card, you do not feel the money getting out from your hands until you receive your monthly credit card bill.

 

Also, there is a greater possibility to spend more because the expenditures become unnoticed. Unless you are on a cash diet, you monitor every penny that goes out from your pocket.

 

Simple Living. Honestly I gave up already buying, planning and dreaming fancy things. For me now, it is all about functionality.

 

Financial freedom is not an easy journey especially if you are already trapped in spiraling debts. However, it is not yet too late and there will always be ways to improve your financial situation. It is just a matter of choice.

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The Importance of Tracking Your Daily Expenses

Posted on September 2, 2011 by | 6 Comments

My sister's old & worn out diaries for tracking her daily expenses

It is such a shame to admit but I learned the importance of tracking my daily expenses through my sister who is 9 years younger than me. :D

When I had my short vacation last year, I saw her thick and worn-out diary. The pages were full of stapled receipts and notes with figures on it. Curious, I asked my sister.

I came to know that she has been tracking her daily expenses as early as 10 years old but took the serious turn of detailing every expense only at the age of 15. She continued practicing it until now and it has been very useful to her especially after she started working and earning her own salary.

Because of her records, she can calculate every year her annual expenses. She even confidently shared how much annual income she needs to survive and even mentioned which year she lived more expensively compared to the other years. She attributed this particular year with high cost of living when she moved to Manila (the capital of Philippines).


If you are like me who disregard the importance of recording daily expenses, then the following points may encourage you to start adopting such financial practice.

Transparency. Have you ever sometimes wonder where did your money go? I oftentimes encounter this situation when I receive extra money like bonus or an incentive. After few days, I ponder what happened to that amount as there is nothing left in my wallet. Tracking your daily expenses will entail detailed transparency in your expenditures.

Knows When Not To Spend. Monitoring your daily spending will give you an idea of your expenditures yesterday or the previous week. It makes it easier to realize that you have been overspending by just looking at your financial records. This is helpful especially when you are setting a daily budget. Once you recognize your overspendings, you can adjust or control your expenditures for the next few days to ensure that you will be in line with your budget until the next salary comes.

How much You can Save. Religiously tracking your expenses can help you save. You will not know from where to cut costs if you do not know where your money goes, right? Your records will show how much you are spending for entertainments or for weekly groceries. Thus, to increase your savings then you must slash your expenditures in your entertainment expenditures.

Setting Target for Next Year. I have been working in the hotel industry for some time now. After midyear, the management will be busy preparing their target and forecast for next year. In order to come up with these figures, they will base it from the previous performance and figures. Similarly, it applies to our personal finance. How can we set our monthly or annual target for next year if we do not know our performance and expenditures for the current year?

These are some of the benefits of tracking your daily expenses. I know that embracing this practice can be daunting. I did it and stopped after few months but now I am doing it for good and for real! :D

Here are some tips to make your daily tracking easier.

  • Ask and keep receipts of your daily purchases
  • Carry always a small notebook and pen in your bag. This is excellent way to jot down expenses while travelling and keeping records for expenses which do not have receipts.
  • Spend 10-15 minutes in the evening to write down your expenses.

Hope it helps! If you have more tips, please feel free to share..

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Abu Dhabi Parking Timing during Ramadan

Posted on August 6, 2011 by | Leave a comment

My colleague was calculating her approximate expenses for Ramadan. Confused, I asked what was the calculation all about. She was quite concerned because during Ramadan it means that she will shell out more money for the parking tickets.

Honestly, it really didn’t occur in my mind but she is right. The paid parking during Ramadan is from 9 am until 4 pm and from 10:30 pm until 2:30 am. Since our office ends at 3pm, it means that we have to pay 4 hours parking fee instead of the usual parking fee of 3 hours during the normal days.

If it is not Ramadan, the paid parking is from 8am to 9pm and since our office finishes at 6pm, we are paying only 3 hours. Oftentimes we go home at past six, so on average we are spending AED 4 for standard parking and AED 6 for premium parking for two hours.

Honestly, the amount is immaterial if it is calculated only on daily basis. However, end of the day when you sum up the parking fee expenditures, it is still a good amount of money.

Like my situation, I am spending an average of AED 9 per day for parking and that is only for the parking fee paid after office hours. Then on Saturdays as I do not have work I am paying AED 15 for the full day parking fee.

It means that I am shelling out an average of AED 240 per month and approximately AED 2,800 by end of the year.

See, after all it is not a bad amount, right? With that amount of AED 2,800, I can already purchase an airline ticket for Abu Dhabi – Manila – Abu Dhabi (except on high season like December).

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Posted in Driving, Finances, Frugal Tips, Life in Abu Dhabi