“Back to Basics: How One Young Singaporean is Cutting Down on Expenses “

From paying $11 for a packet of ‘cai fan’ to an eye-watering $72 for two raw chickens, it’s hard to ignore the rising cost of living. While these may seem like extreme cases, inflation is a harsh reality for many.

One young Singaporean, however, has turned to a simple yet effective strategy to manage her expenses — the “cash-stuffing” method. Inspired by YouTube videos and a trend originating on TikTok, this method involves putting cash into envelopes labeled for specific categories like food, entertainment, and transport.

“You start by budgeting your paycheck and then decide whether to withdraw all the cash for stuffing or keep some in the bank for online transactions,” explained Saeyeon, a 23-year-old student, to AsiaOne.

The idea is that physically seeing the money you’re spending can help you control your budget and avoid overspending. In recent months, Saeyeon has cut down on non-essential expenses like movie outings and redirected that money toward more important items, such as food. She has also opted to eat at home more frequently.

Since starting her cash-stuffing journey in February 2021, Saeyeon has saved $5,000.

Coping with Rising Costs
Saeyeon isn’t alone in tightening her belt. With the rising cost of housing, petrol, and food, many Singaporeans are adjusting their spending habits. In a July survey conducted by AsiaOne, nearly three in four respondents (73.9%) expressed concern about the cost of living for the next six months.

The top concerns? Rising food costs, cited by 81% of respondents, followed closely by the cost of daily necessities, which worried 76.9%.

Adjusting Lifestyles
More than half of the survey respondents (55.3%) said they were cutting back on non-essential items, just as Saeyeon has done. For instance, upgrading to the latest iPhone 14 isn’t on the cards for many. In fact, 37.2% said they were delaying the replacement of items like phones, while 35.6% were turning to life hacks and discounts to save money.

Interestingly, those between the ages of 25 and 44 were more likely to consider job hopping (25.7%) or moonlighting (22.3%) to increase their income. Meanwhile, 28.1% of those aged 45 and above said they might even delay retirement to cope with the rising cost of living.

Concerns Beyond Daily Expenses
The survey also revealed that respondents aged 25 to 44 were particularly concerned about housing costs, while those aged 35 to 54 worried more about job security.

Commenting on the findings, Edmund Chua, head of AsiaOne’s Consumer Insights and Analytics Office, noted that the cost of living is a “major concern” for most Singaporeans, especially those of working age who are facing increased financial commitments, such as housing.

On the other hand, younger Singaporeans (25-35) and older respondents (above 55) seemed less concerned, possibly due to having fewer major financial obligations.

Outlook on Rising Costs
In summary, Chua pointed out that global events have contributed to higher prices for daily necessities like food and energy. “Given these results and the prevailing geopolitical headwinds, we expect concerns over the cost of living to persist for at least another year,” he concluded.

For now, it seems methods like Saeyeon’s cash-stuffing strategy are becoming more relevant than ever, as Singaporeans look for creative ways to navigate a more expensive reality.