Plan ahead to beat rising living costs

Every day she has to pay Bt70-100 for transportation and Bt25-40 for each meal. She has almost no savings left each month after paying for living expenses, including rent, electricity, water, cellphone and consumer goods.

Despite a fixed income, she used to live comfortably, but now she feels she has a very low income compared to the cost of living which climbs day by day.

Prices of consumer goods and food have increased since late last year due to skyrocketing oil and raw material prices. From The Nation's survey of modern traders and fresh markets in greater Bangkok, many product prices are on the rise, despite the Commerce Ministry allowing hikes for only six products.

According to the Consumer Price Index data for January, the prices of 373 goods rose 4.3 per cent on year.

Food and beverage prices jumped 4.8 per cent, mainly for fresh vegetables and fruit, meat and seasonings.

Non-food items such as alcohol, garments, transportation, mobile phones and fuel rose 3.9 per cent.

Construction materials surged 12.4 per cent, the fastest in five years.

How can a salary earner survive these tough economic times? This report proffers seven tips to keep your expenses in check.

1.Get the 'big picture' of your finances

Do you know how much money you have coming in versus how much is going out? Track what you spend, especially during difficult economic times, and also record everything - from the gum you buy at the convenience store to a pair of earrings or a cup of coffee from a vendor.

Little things add up, and spending Bt10-20 five days a week on gum or small things adds up to Bt3,710-7,420 a year.

Track your money by dividing it into categories - shelter, food, transportation, entertainment, savings and miscellaneous. You will learn how much you pay each day for unnecessary items. I'm not forcing you to stop spending on those goods, but you will be more conscious of buying things that may not be essential to your daily living.

2. Make a shopping list and stick to it

List the items that you need each week or month. Make a spending plan and know the "who, what, when, where and why" of your spending. You will know when to go shopping and for what reason. You will not waste too much money on non-essential goods when you go to a shopping centre or supermarket. Also, you can save travelling expenses each time you walk out of your place.

3. Choose places to stash your savings

Even after you've tracked your spending and made a list of essential goods, you still may come up short.

Look for ways to save more money. That includes selecting a supermarket and fresh market to buy goods. Go to a wholesale shop once a quarter to stock up on bulk packages for products that can be stored a long time such as soap, toothpaste, detergent and tissue paper.

Go to a supermarket when it launches a low-price campaign. Buy only those goods on sale, as their prices are really lower than normal, but beware of purchasing any goods not included in the campaign, as their prices are usually higher than at other retailers.

Go to a green market for fresh food rather than a supermarket as you can bargain for lower prices as well as help local traders.

Usually convenience stores are more expensive than supermarkets, but buy some goods there if it can save on travel expenses. Remember to choose local small shops as a priority to help them survive the onslaught of retail giants.

4. Look for special promotions and make price comparisons

Prices at each shop vary. Don't believe the marketing catchphrases used to draw buyers such as "Roll back", "Shock price", "More than just low price". Some goods may really be cheaper than others, but the promotions will limit the quantity that can be purchased at one time and also traders may change prices without warning.

 Look for coupons and sales flyers. Often, grocery stores will match what their competitors are doing. Normally, shoppers who use coupons and store-loyalty cards save more than 10 per cent a year on groceries.

You can run the numbers before deciding to buy something. Don't be embarrassed, as this is the best way to know which brand offers you the best price compared to the quality.

5.Select seasonal foods

Prices of food during harvest season are always much lower than out-of-season. Luckily, we live in the land of fruit with fresh items appearing every month. We don't need to pay higher prices for them. So why do you have to pay more for other products?

According to the Internal Trade Department's report, reaping or picking seasons include rice between June-November and March-April, onion between September-March, cassava between April-October, durian between April-September.

We also have plenty of fruit, vegetables and other items that can be harvested throughout the year, such as coconuts, oil palms, pineapples, rubber and silk.

6.Bring your own shopping bag  

Although most stores still offer you a plastic bag when you shop there, try to make it a habit to bring your own bag, as most shops might soon charge you for bags.

For instance, most shops in Europe charge for every bag used. In Germany, the shop does not include a bag; if you want it, you have to pay for it.

This method will not only help you save money, but also save the environment. You know, it takes more than a hundred years to dissolve one plastic bag!

7. Keep networking

Learn what's going on in the economy by reading the newspaper. Pay attention to indicators such as the unemployment rate, stock market index and interest rates, all of which can indicate the economy's direction. Always keep networking, because the more people you know, the easier it might be to find another way to save money or even earn more.

Supatra, 31, says she often goes out to buy goods - and when she makes it to the grocery, some prices stand out. "Milk… God, even snacks have gone up!" she says.

Prices may be higher, but that's why she changed her buying behaviour. She's slimmer and doesn't eat many snack foods any more, but tries to look for deals - such as low-price offers. She walks blocks to shop for low-priced goods at fresh markets rather than take a taxi to a supermarket in another area.

"And that helps a lot," she says.