100 ideas for improving your personal finances. What can you start doing? What should you stop doing?
What is Min-Maxing My Personal Finances?
Min-Maxing (which has its roots in role-playing games) is the process of minimizing weaknesses and maximizing your strengths. The end result desired is for optimization and better results.
Min-Maxing my personal finances is all about taking many small steps to ruthlessly cut your weaknesses and gain many small incremental gains to improve your personal finance.
Select 2 ideas to implement each week and you’ll be done within less than a year!
100 Ideas for Min-Maxing My Personal Finances
Personal Finance Basics
- Have an overall financial plan
- Set S.M.A.R.T. financial goals to achieve
- Have a 3-6 months emergency savings
- Pay yourself first when you receive your salary
- Have a budget and stick to it
- Manage your debt
- Grow your net worth
- Maximize your tax benefits
- Know your retirement numbers
- Give generously
General Spending
- Cut expenses on unnecessary spending
- Use generic alternatives when shopping
- Bring your own (reusable!) water bottle when dining out
- Calculate the price per unit when buying groceries
- Pay off your credit card balance in full every month
- Avoid lifestyle creep as your income goes up
- Get and stick to a retailer /groceries membership program
- Apply and use a cashback credit card like Maybank 2Card
- Download and spend using e-wallet apps like Boost App that offer cashback (referral code: ste5fno)
- Earn cashback using cashback sites/apps like Shopback
General Income & Savings
- Save/invest at least 20% of your income
- Apply for a high yield bank account like the OCBC 360 account
- Already a Maybank M2U account holder, apply online for M2U savers
- Take advantage of the latest best FD promotional rates
- Renegotiate your pay to increase your income
- Jump to a different company or different industry and be rewarded
- Sell your junk online or to a cash converter location
- Take up a part time / side income / online business
- Use your hobbies / gifts / talents to earn some moolah
- Take online YouGov surveys
Dining & Entertainment Related
- Cook in bulk & freeze
- Organize a pot bless (pot luck) instead of dining out every time
- Skip sweet drinks when eating out (even Nando’s has free water now)
- Get the Entertainer App
- Use dining deals offered by your telco (phone) provider or credit card
- Download the restaurant apps that give you better savings like the McD app
- If you frequent Starbucks, get the Starbucks card/mobile app, and Starbucks tumbler
- Get free movie tickets via GSC birthday month / TGV membership
- Borrow books from friends/library
- Buy books on sale especially Big Bad Wolf/Popular book fair
Travel & Tech Related
- Get a credit card with travel/lounge benefits
- Select a flight rewards/membership program with an airline/alliance you like
- Search for the best value flights using Skyscanner
- Travel during off-peak season if your vacation time is flexible
- If you travel often, buy annual travel insurance
- Make use of the Apple student discount
- Don’t chase the latest phone models
- Check if it’s worthwhile getting a free/discounted phone with a locked-in plan
- Use TIME Broadband if available in your area
- Use strong passwords
Auto Related
- Get sturdy tyres (Malaysian roads suck)
- Save costs long term with regular on-time service, proper tire pressure, and regular rotation
- Bring own engine oil instead of using the marked up expensive one at the shop
- Wash your car yourself
- Consider buying almost new cars and save on the massive early years depreciation
- If buying pre-loved, get a good mechanic to check to avoid buying a lemon
- Don’t text while driving (the risk of an accident far outweighs the time you save)
- Check online pricing before selling/trading to a dealer
- Get rid of junk weighing down your car
- Buy auto insurance
Health & Risk Management
- Exercise regularly
- Consider exercising from home or with a low-cost home gym
- Eat more vegetables
- Buy own fruits (not cut fruits)
- Have a fruits-/oats-only diet days
- Cut sugar from your diet
- Brew your own coffee (and skip the sugar)
- Go through a regular insurance policy review
- Get at least a basic will written
- Make sure your nominees for EPF, insurance, unit trust, PRS are up-to-date
Investment Related
- Have a personal investment plan
- Sell/switch your losers; ride your winners
- Avoid money games and get rich quick schemes
- Don’t follow “hot tips”
- Don’t panic over short term price movements
- Have an investment strategy
- Have an entry and exit plan
- Have a long-term perspective
- Reinvest your dividends
- Always look to pay lower/discounted fees
Property Related
- Location, location, location
- Calculate your projected yield and returns
- Know your ideal tenant profile for rental properties
- Check the developer info and track record
- Buy property with low/zero down
- Check for the best property insurance MRTA/MLTA
- Consider property refinancing for better rates/unlocking equity
- Be prepared in case of interest rates hikes
- Consider outsourcing property management
- Consider indirect property investment (e.g. REITs)
Equities Investment Related
- Use a low cost local shares brokerage
- Don’t gamble
- Know your circle of competency
- Avoid following the crowd
- Invest in equities via long-term fundamentally strong opportunities
- Build a diversified equity portfolio over different sectors and industries
- Record all your investments via an investment journal
- Invest not only in Malaysia but globally
- Use a low cost global shares brokerage
- Learn how to read and understand how the economy affects the market
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