How much on average do you spend daily? on food and transport daily.

Depends on mood, if feeling disciplined can be $5 or below, else can go as high as $200, if I were to bring all my kids with me for a massage.

Typical

Transport: 0 sgd due to WFH per day

Food: 15 sgd per day.

Around 10 - 20

Becoming adept in your day-to-day spending habits can be a crucial aspect of financial well-being that people often overlook. It's easy to underestimate how even small, recurring expenses impact your long-term goals. But as the saying goes, "Take care of the pennies, and the pounds will take care of themselves."

Take my client, for example, a young professional who approached me frustrated over his inability to save money despite earning a good salary. When I examined his budget, it became clear where the issue lay – he was leaking money on everyday "necessities" like expensive takeout lunches at work, frequent rideshares, and fancy coffee trips.

While each of these expenses may seem insignificant individually, the cumulative amount was staggering. Every month, He was unknowingly spending hundreds of dollars on things that seemed minor at first but added up over time. He had become a victim of "latte factor," where thoughtless daily expenses can undermine even the best financial plans.

In a collaborative effort, we began to rein in his everyday frivolous spending. We discussed what are the "essentials" he truly needs for comfort and self-care, such as an affordable meal delivery service to provide him with healthy work lunches. However, we also identified certain "nice-to-haves" that could be eliminated or reduced, like brewing coffee at home instead of spending $6 on café visits.

Within a few months, Daniel's savings rate improved significantly as he started being more mindful about his casual everyday expenses. He was truly amazed at how big a difference it made to just plug those small spending leaks for wealth preservation.

The biggest myth I want to debunk is that budgeting only involves managing large, visible expenses like homes, cars, and vacations. While it is crucial to manage these major items effectively, a less recognized but equally significant factor in achieving financial success lies in the discipline exercised around your minor daily "money drainers."

When scrutinizing your spending, break it down into the daily details of each dollar. Identify any "nice-to-haves" that are more extravagant than essential -- for example, premium subscriptions; conveniences you can do without; or frequent transportation methods not necessary for essential options. Next, commit to diverting only a portion of these daily expenditures towards beneficial goals such as paying off debts, making investments, and similar vital matters aligned with what matters most to you.

It might surprise you how small daily adjustments, when compounded over time, can lead to significant long-term wealth. By applying some creative thinking and discipline, it's possible for you to significantly reduce your burn rate while still living a fully satisfying life.

If you want to understand more about forming a spending habit that aligns with your life goals, be sure to follow me on Instagram @ngooooied. I'm dedicated to helping professionals truly master their money mindset and behaviors so they can fully unlock their wealth potential.