Chinese New Year is just around the corner, and we’re totally looking forward to loads of good food, happy reunions and of course, the red packets! Are you excited, too?
Before you go full speed ahead into the preparations and feasting, here are 6 easy tips to help you celebrate this special time without breaking the bank!
1) Organise Potlucks
Instead of ordering a pricey 5-course meal from a restaurant, make reunions a cozy affair by requesting that every family or friend contribute a dish to the table! This will make things easier on your wallet, and gives you control over the amount of MSG, sugar, or salt in your food.
If you’ve been asked to bring a dish, don’t worry: There’re plenty of easy, affordable, and yummy recipes you can whip up in a jiffy. Some great options include a refreshing Chinese tofu salad, braised Shiitake mushrooms, or homemade Osmanthus jelly with wolfberries!
2) Be Early, It Pays Off
Shake off the procrastination and get yourself to the salons or supermarkets early! Prices for services and groceries like meats tend to go up a fair bit when festive seasons approach, with Chinese New Year being no exception. Buying frozen foods or freezing fresh produce are two options worth considering—when done properly, the quality and taste of your food can be retained.
Quick Tip: Get your family to visit wholesale markets to save on CNY goodies and dried foods!
3) Adopt the 3-Box Money Management System
Bring good-old piggy banks back in fashion this CNY. The 3-box system is an ingenious method used by parents to teach their children money management skills, and we think it’s a great life-hack worth adopting! All you need to do is find three small jars or boxes. Label them ‘saving’, ‘spending’, and ‘sharing’ respectively, then carefully allocate your hong bao money between the boxes.
Continue doing this after CNY with any small change or notes you have. When the boxes are full to the brim, bank in the ‘savings’ pile, use the ‘spending’ pile on something you like and donate to a meaningful cause with the ‘sharing’ pile. Repeat the process again during the next CNY. Simple, isn’t it?
4) Cashback, Baby
If you’re getting your new outfits off the Internet, take a few minutes to make sure that you haven’t missed out on any discounts and deals. Don’t miss out on potential cashback, either: While the rebates might not be substantial, you’ll still earn enough over time to treat yourself to an occasional bubble tea or two! One popular app to check out is ShopBack, which is available for both your phone and Internet browser.
5) Remember the Power of Compounding Interest
Before giving into the temptation of spending your CNY money all at once, remind yourself about compounding. Compounding happens when both the money you regularly save or invest, as well as the interest it earns, earns interest. Here’s an example: If you set aside $50 every year for a decade in a bank that offers an interest rate of 2%, you will accumulate approximately $60 more! Just imagine how much higher this amount would be if you saved a larger sum.
Time is your best friend for compound interest, and it’s better to start small than not at all. Start with an amount that’s comfortable for you!
Quick Tip: Compound interest calculators are widely available on the internet. Curious about how long it will take to double your savings? Use the Rule of 72 (72/compound interest rate) for a quick estimate!
6) Turn Saving into a Game
Turn the art of financial control into something fun! Use a budget app to help you keep track of your spending and saving. The Fortune City app, for example, combines accounting with a fun city simulation, for example, with achievements to unlock and special surprises for daily users. With so many free apps to choose from, you’re sure to find one that’ll suit your needs—why not make ‘CNY money’ your very first entry?
Alternatively, come up with mini-games! Put aside every two-dollar note you come across in your red packets or even better, challenge yourself by seeing how long you can go without spending that money on non-essentials. Set milestones with an appropriate amount of difficulty and reward yourself with a dollar or two from the red packets after surpassing them!
We hope you’ve found these tips helpful for the upcoming festivities!
Budgeting and compounding are just a small taste of what the world of Accounting and Finance courses has to offer. If they’ve sparked your curiosity, consider taking up our Diploma in Business Administration (Accounting and Finance)! Taught by industry practitioners, the Diploma covers highly relevant topics such as Business Accounting and Financial Management, and can be completed within 12 months! Upon completion, you can progress to our Bachelor of Arts with Honours in Accounting and Finance, or you may also take this degree programme if you already have a related polytechnic or private diploma.
Curious to find out more? Speak to our friendly programme consultants—they’ll be more than happy to help!
From all of us at PSB Academy, Gong Xi Fa Cai and Happy Chinese New Year!
All information is accurate at the time of publish in Jan 2020. For the latest information, please visit our website.
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