savings Archives | Page 19 of 25

Quick And Simple Ways To Fix Your Financial Clutter

In the daily hustle of the city, being a busy bee is hard work but, that is not an excuse to remain untidy with your finances!

Simply spare at least 20 minutes of your time to manage your own finances with these four ways:

1. IDENTIFY YOUR FINANCIAL VALUES AND GOALS

Without underlying values and goals about money, you would not be able to fully integrate it to your life. Thus, the essential first step is asking yourself: What are the most important things to me (i.e., values) and how do I get there (i.e., goals)?

Develop a habit of financial goal setting to know where you are going and to plan how you can get there. Write down your financial goals with a trusted witness and contemplate the monetary milestone you would like to accomplish in the next 2 months to 2 years. Track down your monthly progress accordingly.

2. TIDY UP YOUR WALLET

Like your study or workspace, you will be able to clear your thoughts better when your wallet is organized and neatly placed. Fill the individual pockets with your bank and identification cards so you can easily take it out when needed. Then, spend a few minutes emptying your wallet of old receipts and other clutter.

3. REDUCE YOUR FINANCIAL ACCOUNTS

In a world filled with a certain bank account card for all your needs, most people have several numbers of bank or credit card accounts. The complication starts when the credit card for travel, for petrol, and for shopping sends bills at the same time. Also, you may have different bank accounts for higher interest, minimal fees, and rebates.

More than being complicated, the constant shuffling between these accounts can get messy. Simplify your life by closing out one account per week or you may consolidate all your accounts online.

4. BUILD AN EMERGENCY FUND

Do you have an emergency fund to protect you from unforeseen events? If you do, it is best to put it on a separate account with an online access so you can easily tap on it if the need rises.

If you do not, the best time to build one is now! Consider joining the 52-Week Money Challenge (available here). The challenge starts off by saving S$1 a week and by the end of the year, you will be able to save up to S$1,378!

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

Smart Financial Resolutions To Kick-Start 2016

What better way to usher in the New Year than by making smart financial resolutions to improve your wealth?

1. ELIMINATE YOUR UNHEALTHY HABITS

Unhealthy habits, such as excessively drinking alcohol or smoking tobacco, that you enjoy on a regular basis can not only increase your insurance premiums but also your daily expenses. Another unhealthy habit that may be costing you a lot is regularly eating junk. Junk food is called junk for a reason as excessive consumption can lead to obesity, diabetes, high blood pressure, and so on.

When you decide to stop drinking, smoking, and eating unhealthily this 2016, you will see your bills going down and you will feel improvements in your health in no time!

2. WIPE OUT UNNECESSARY EXPENSES

As you review your annual statement, there is probably an expense or two that you can trim from your budget. Mine is my mobile phone plan. Due to accessible Wi-Fi connection almost anywhere in Singapore, I am able to refrain from using the allotted local calls and SMS on my plan. Yet I am still paying for it. What a waste!

How about you? Go through your past purchases. After seeing the bigger picture, it is time to cut down your expenses. Reduce the unnecessary expenses such as mobile phone plan, designer bags or costly coffee beans and turn a new leaf.

3. BE MORE ECO-FRIENDLY

Fix, refurbish, or recycle your furniture, decor, or appliance that are still in good condition instead of spending money to replace these. As you revamp your stuff, use lighter colored paints to reduce the heat and energy consumption. As you recycle, you may consider turning your old drawer into a shelf. There are many ways to cheaply decorate your home and saving Mother Earth in the process…just keep your creative juices flowing!

4. LOSE WEIGHT

Every January, a huge queue of people flock in fitness studios and gyms. These members soon to disappear as months go by. Instead of wasting your money on costly gym or fitness studio memberships, workout for virtually free at your own home or at the town parks. Do yoga, jog outdoors, run in the stadium, or try any workout routine that you can do for free.

5. TIDY UP YOUR LIFE

Being messy with your space and time can cost you!

For instance, being untidy with your billing statements can result to late payments and penalty fees while being unorganized with your cooking time can result to overspending on take-out food. The list just goes on.

Image Credits: pixabay.com (License: CC0 Public Domain)

It is important to organize your life…have a physical storage for your bills and schedule your tasks. As long as you are on track, you will be able to save!

Sources: 1 & 2

5 Surefire Signs That You’re Ready To Move Out

For a young working adult, staying at home with your parents seems like the perfect place to live in. Since the rent and food are usually free, you will be able to get a financial head start.

However, this living arrangement can hold you back if you want to live an independent and autonomous lifestyle. Think about it!

To help you, here are some signs to validate your desire to move out:

1. YOU ARE DONE ANALYZING YOUR CURRENT SITUATION

Renting or buying your own flat is one of the biggest investments you can ever make in your life. It is a long-term commitment that you should carefully analyze and plan.

Before deciding on whether you are renting or buying your own home, you must first know how much you earn, how much you can afford, and how much do you need. The type of flat you can afford to rent or buy depends on your income and savings. The exact amount of money you need includes the upfront payments and the monthly payments such as conservancy charges or housing loan installments.

You are only ready to move out when you are done examining your financial capabilities and done weighing your housing options.

2. YOU HAVE SUFFICIENT SAVINGS

In order for you to move into your own nest, you must have sufficient savings in your account. This savings is not only for your down payment but also for your emergency fund that compromises maintenance, repair, and moving expenses.

Image Credits: pixabay.com (License: CC0 Public Domain)

Since loans may take up a huge chunk of your income, it is advisable to have a sufficient cash at hand (amounting to at least four months’ worth of salary).

3. YOU HAVE ENOUGH MONEY TO PAY FOR DOWN PAYMENT

If you are purchasing a house in Singapore, the bank can give you a loan of up to 80%. This means, you will need to have 20% of down payment upfront. Instead of getting trapped in a credit hole, it is important that you can afford the down payment. And if you really cannot afford it just yet, you can either wait or find a cheaper place.

4. YOUR POTENTIAL HOME WILL NOT ELIMINATE YOUR ENTIRE CPF

As a working Singaporean, you are entitled with a comprehensive savings plan called the Central Provident Fund (CPF). This is mainly used for your healthcare, retirement, and housing needs. However, you must not blow it all on one area such as housing.

If you do not have other investment options to cover your lifespan then, it is not necessary to take the highest HDB loan possible just because you can.

5. YOUR PARENTS ARE ITCHING FOR YOU TO GET OUT

If you are constantly finding yourself in an argument over simple things especially the ones that pertain to the house rules then, it is time to consider moving out. Furthermore, if your parents are throwing subtle comments on you then, it is time to take the hint.

Moving out may be the suitable solution for you to keep your loving and peaceful relationships in tact.

Image Credits: Denis Bocquet via Flickr (CC License)

Aside from these signs, you must not overlook the pleasure and responsibilities of living on your own!

Sources: 1, 2, 3, & 4

Cosmic Ways To Save Money Like A Jedi

Sometimes, useful financial advice can come from the unlikeliest places. Take Star Wars, for example. It is not only an epic Science fiction film series but also a good place for frugal inspiration.

Learn to save money like a Jedi with these five universal ways:

1. BUILD THINGS FROM SCRATCH

Luke Skywalker, one of the greatest Jedi in the galaxy, spend no expense by making his own lightsaber (laser sword). Like Luke, do not be afraid to Do-It-Yourself!

Start from simple crafts such as making your own shower cleaner or personalized key-chain. After which, turn the difficulty up a notch by making all the crafts for your dream wedding. This can help you save loads of cash.

2. SIZE MATTERS NOT

In “Star Wars:The Empire Strikes Back” movie, Luke was tasked to raise his X-wing (aircraft) from the swap and he complains that it is too big. This frustrates Yoda, a wise Jedi Master. Yoda then explains that size does not matter and excuses are not welcome.

In life, obstacles to saving money can seem unbearable at the moment but, it shall not stop you from pushing through. Furthermore, you must understand that the size of your salary does not matter. What matters most is how you spend and manage it.

3. SHARE AND BE BLESSED

A Jedi shares his knowledge and skills to others with no charge. Apply the hippie-like concept of sharing to your life. Share resources to your fellow classmates and you will not have to buy expensive reference books ever again. Also, you can carpool with your friends to save on gas.

4. KEEP YOUR WARDROBE SIMPLE

Much like Jedi Knights who mostly wear “brown sack-cloths with hoods” or Facebook’s founder Mark Zuckerberg who mostly wears grey shirts, you can save more money by keeping your wardrobe simple. You do not have to wear the same shirt or same outfit everyday! Just avoid hefty designer clothing by purchasing clothes from thrift shops or year-round sales.

5. DO OR DO NOT. THERE IS NO TRY.

When Luke was making excuses about his inability to levitate objects with his mind, Yoda told him these famous words: “Try not. Do or do not. There is no try.”

When you continue to make excuses to saving money or altering your spending habits, you can end up retiring broke. So, start accepting the responsibility and create a monthly budget that is suited for you. In due time, you will see that eliminating your excuses produces meaningful results.

Sources: 1, 2 , & 3

5 Essential Steps To Aid Your Financial Security At 30s

No matter what your position in life now, you need to understand that your earlier choices affect (i.e., make or break) your financial situation a few years down the road. This is why it is important to consider the 5 Essential Steps To Aid Your Financial Security At 30s…

1. KNOW THE IMPORTANCE OF PLANNING

Study has shown that those who plan for their future retire with more wealth than those who do not. Being goal oriented is one of the characteristics of a successful person. Aside from setting up goals, you must develop a realistic plan to achieve them.

Writing down 2 short-term and 2 long-term goals is the first step to financial freedom.

2. VALUE FINANCIAL LITERACY

Money management and investing are lifelong ventures. There can be a lot happening during that time such as inflation or unemployment. You must make objective decisions that are beneficial for your financial goals while considering these momentary hurdles. It only makes sense that the more knowledgeable and experienced you are in money matters, the fewer mistakes you will commit.

Read and understand materials about self-empowerment, investment, and money management. Here are some books to get you started with:

“The Intelligent Investor” by Benjamin Graham

“Why Stocks Go Up and Down” by William Pike

“Turning Pro” by Steven Pressfield

“Common Stocks and Uncommon Profits” by Philip Fisher

3. BEFRIEND TIME MANAGEMENT

I understand that some jobs require you to do overtime – most of the time. But striking a balance between your work and personal time is important to prevent stress and occupational burnout. Furthermore, you need to enjoy yourself while you are young. When are you planning to go for “sky diving” anyway? When your vision and muscles are optimum at your 20s or on your 75th birthday?

Befriend time by managing your sleeping hours and cutting down unnecessary activities that shorten your sleeping time like playing Smartphone apps. Also, you must remember balance your present spending with your future ones too. For instance, if your goal is to save money for your house then, do you really have to splurge on designer bags now? You cannot spend today as if it was your last.

4. BORROW MONEY WISELY

A witty strategy to start before you hit your 30s is to practice spending the money you already have by avoiding the use of credit cards. And in case you need to borrow money, keep in mind that you shall never borrow to finance a lifestyle you cannot afford! The constant borrowing to attain the “Luxurious Kardashian Lifestyle” will only pile up your credit, increase the cost of living, and save no money for investing.

Ideally, borrowing money must be used for investment purposes only wherein the gain outweighs the loan expenses such as investing for your education or for a house.

5. REFLECT ON YOUR CPF MONEY

Nearing your 30s without unforeseen emergencies would mean that you have a substantial amount of money in your CPF account. On average, your CPF account should reach approximately 5 digits (e.g., S$20,000). That said, you must reflect on productive ways you can use your CPF money namely: retirement fund, housing fund, investments, education, and insurances.

Image Credits: pixabay.com (License: CC0 Public Domain)

Certainly, the CPF account increases your financial assets.

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