52 Week Saving Challenge

I am taking a 52-week saving challenge this year.

I’ve seen many variations of this 52-week saving challenge on the web. I choose the random amount method and highlight the amount that I save that week.

For example, last week I saved Rp 300,000 and this week Rp 400,000 then I highlighted the amount that I have saved. Until the end of the year, I would have saved Rp 13,780,000.

I’ve put up the easy, medium and hard challenge if you want to do it as well.

Get on track with your saving!

Create your own saving challenge and share with us.

Learn and Grow!

What does money mean to you ?

What does money mean to you?

Is it something to buy happiness? Some people use money to buy stuff to make them happy. Unfortunately that happiness will never last because once we buy the stuff, we tend to lose interest in it over time. When new things come out, we want the next thing, thinking that it will give us happiness again. It goes on and on.

We cannot be happy just by buying happy meals

Fooled by Our Senses

Curbing impulse buying is not easy because our senses are flooded with so many stimulations when we go shopping. We buy something not just from what we see or hear, but also because of what we smell.

I remember when I studied in Perth years ago. Every time I went home, when I got off the bus, I could smell KFC fried chicken and it was pulling me in. I don’t know how many times I bought those fried chickens just because I could smell them from the bus stop.

So what can we do? Be aware of those sensations and let them go. Stick to your shopping list!

Inge Santoso, B. Com, CFP^®

Sweeping Under The Pouring Rain and Emergency Fund

Last Sunday I was enjoying a cup of hot mocha latte at Starbucks while watching the rain outside. I saw one guy sweeping the water away from the walkways and stairs. It seemed like a futile thing to do because the rain water kept on pouring down and when he got to the end, he had to come back and swept again.

What would you have done in that situation? If this was your own house, you would probably have waited until the rain had stopped before began sweeping. Well, I would anyway.

We often do not like doing something that seems futile and has no immediate or apparent results. For example, building a sizable amount of emergency fund. There seems to be countless emergencies popping up draining away our emergency fund, and we keep on trying to replace the depleted account. It may feel futile and sometime we just want to give up.

When you want to give up, remember the lesson from the sweeper. He kept on sweeping because he wanted to minimize the risk of people falling down due to slippery walkways or stairs. It was not futile because it was about minimizing loss and risk.

When we build our emergency fund, it is also for minimizing loss and risk. We reduce the risk of falling back into debt. It is not a futile thing to have a money cushion in the event of emergency or unexpected situations.

If you are still struggling to build your emergency fund, don’t give up! You are on the right track and sooner or later you will get there. Press on!

Learn and grow!
Inge Santoso, B. Com, CFP®

My Luck with Starbucks

Yesterday I went to Starbucks to buy Starbucks’ 11th Anniversary mug. I had a voucher that entitled me for 30% discount. The price of the mug was quite expensive, Rp 75,000, and after discount it would be Rp 52,500.

While I was there, I was offered to get Starbucks Reward Card with a minimum balance of Rp 100,000 and only for yesterday, I could get a free beverage (Mocha Cookie Crumble Frap tall size). I thought it was quite a good offer and I certainly could use the discount, so I agreed to get the Starbucks Reward Card for Rp 100,000.

When they entered my purchase into the cash register, somehow the total amount came out to be Rp 130,000, instead of Rp 152,500. I told them that the amount did not seem right and they also agreed with me, but they had to follow the cash register. I ended up paying only Rp 130,000.

I considered myself lucky when dealing with Starbucks because yesterday was the second time that I got something extra from Starbucks. Last time, I got an extra free drink because of another error.

I put away Rp 22,500 into my lucky note stash to remind myself that sometimes I am just lucky! 

Do you have similar experience? If you do, please share in the comments.

Learn and Grow

Inge Santoso, B Com, CFP^®

Credit Card and Airport Lounge

One of the reasons I have a credit card is free airport lounge access. A few years ago, gold card could get you a free airport lounge access. Nowadays you need to have at least a platinum card or higher (titanium, privilege, emerald or whatever they want to call it) to have a free access. If you have a gold card, then you may be able to use your reward points to get access.

Is it really free? No!

If you are paying a yearly fee for your platinum card at about Rp 600,000 to 750,000, then it is not really free.

If you carry a balance on your credit card and you are paying interest, then it is definitely not free. You are actually giving subsidies to those people who pay their balance in full every month.

If you are offered to apply for a new credit card just to get an airport lounge access, be smart! Ask yourself how often you are going to use the facility. If you travel less than 10 times a year, then you'd be better off just paying cash Rp 50,000 for one time access. If you only want some 'free' food available in the airport lounge, it is better to get a proper and more delicious food somewhere else.

If you have a credit card that give you free access to airport lounge, then use it and enjoy yourself! If you have access for two, then get acquainted with someone new and use it to make friend.

Learn and Grow
Inge Santoso, B Com, CFP^®

Take Care of Your Finances Before Going Traveling

If you have a plan to travel overseas for more than a week, please remember to take care of your finances.

If you know that you have bills due to be paid while you are overseas, you need to arrange the payments, either paying them online or delegating the task to someone that you can trust. If you have automated payments by debiting your account, then you do not need to worry about it. Just make sure that you check the amount when you get back from the trip.

Please remember to pay your credit card bill because the late charge and interest are punishing. I know one bank charges Rp 150,000 just for late charge. Imagine if you are only using your credit card to buy one mocha latte at Starbucks for Rp 31,000 and you get to pay Rp 150,000 late charge – Aaaarrhhh! Pay your credit card bill early!

This month, I paid all my credit card bills on the same day as when the e-statement arrived because I plan to go on a trip. I do not want to cut it too close because I will only come back one day before it is due. Better early than sorry!

What about savings? I have an automated system to save and invest my money, so I am covered. Every month, my account will be debited and that money will go straight to saving and investment account. Automated savings makes life easier and you can have more time and freedom to do what you want.

How about you? What do you usually do before going traveling? If you have some tips or comments, please share.

Learn and Grow!

Inge Santoso, B Com, CFP^®