Stretching your dollar

In the past, I might have been lax in claiming my credit card reward points so there were times when they expired before I could redeem them. I'm more careful now. Last week, I claimed $500 worth of vouchers from my reward points. I'm also keeping a close watch on my husband's Krisflyer mileage points as they too have an expiry date.

I also keep track of the one-for-one meals which are regularly advertised by credit card companies and make use of them for family outings.

When it comes to grocery shopping, it is possible to stretch your dollar too. Selecting house brands over branded items can result in savings of about 15 to 40 per cent for the same product quality.

I also figured that this is as good a time as any to learn how to cook some simple dishes. That way, I can whip up something quick at home instead of eating out, which invariably costs more.

Of late, I've perfected one dish - a Greek pasta called 'kokinisto'. These days, I cook a huge quantity each time so I can refrigerate the bulk of it and consume it slowly during the week.

And instead of spoiling my children with delicious but pricey desserts at restaurants, I've resorted to cheaper alternatives - I buy frozen desserts and warm them in my oven.

To the delight - and amazement - of my two kids and myself last weekend, I successfully produced two lava chocolate cakes which I had got frozen from Marks & Spencer ($10.90 for two). They tasted as delicious as those that cost $14 apiece at a high-end restaurant, even if they are not as pretty to look at. My sister-in-law has promised to pass me a recipe for this dessert, and if I can bake it from scratch, I'm sure it will be even more nutritious - and cheaper.

I used to think I couldn't do without my pedicures or buying a diamond accessory every year. But you know what? It's not that difficult once you set your mind to it.

On the more serious topic of finances, I'm keeping a close eye on my emergency fund, making sure that I have enough money to cover at least six months of living expenses for contingencies.

I'm also asking my financial adviser more questions and keeping closer tabs on my investments. Despite the panic in the market, I'm continuing my dollar cost averaging strategy - that is, I put a fixed sum into the market monthly via my unit trusts so that in times like this when the markets are low, I'm buying more units and averaging down my overall cost.

Last but not least, the recent saga of the failed investment products linked to bankrupt Lehman Brothers is a timely reminder to me not to put too much emphasis on accumulating wealth for its own sake because we never know when they will suddenly lose their value.

People should always come first before money.

At the start of this year, I made a resolution to spend more time with my aged parents and family.

Regardless of how bad the economy is, this is a resolution that I plan to renew next year.

This article was first published in The Straits Times on November 09, 2008.