Why Is It So Hard To Save?

With the surge of expenses from left to right, many find it difficult to save money on the side. The difficulty arises not only due to the lack of self-control, but also due to our perception. Harvard Economics Professor Sendhil Mullainathan tells CNN Money that “it is human nature not to save, but we can get better at it”.

#1: ACCEPTANCE

The first step to building your savings is acceptance. Accept your current financial situation and today’s economy. Whether you admit it or not, saving money is harder than ever. As prices in Singapore increase, we have less “disposable” income that we can allocate to our financial goals.

Acceptance of these will enable you to focus on the future priorities rather than focusing on the urgent expenses. You can automate your savings and allocate it to your retirement or education funds. I suggest you start small with the “52 Week Money Challenge”. This challenge encourages a slow and steady approach to saving money.

#2: REMOVAL

The second step to building your savings is to remove unnecessary elements such as your multiple credit cards. It is no surprise that saving money is hindered by the accessibility of credit. You see, our cashless society diminishes our appreciation for every dollar that we spend. Credit cards enable us to spend money before we save. And, there is no going back!

Not to mention, credit cards enable us to subscribe to monthly services such as video and music streaming. Our subscriptions add up! Every dollar you spend on meal delivery or Taobao delivery add up. What’s more? It can be difficult to cancel a monthly service that you forgot to sign up for. Just take caution with your plastics!

#3: RESET

The last piece of the puzzle is our perception towards savings. Many Singaporeans think that saving is challenging because it requires a heroic feat of tightening one’s budget. In reality, saving money can be done gradually. It should not be driven by sacrifice. Instead, it should be driven by opportunities harnessed by self-control.

For instance, you may save money without being conscious about it all the time through automation. You can automate a specific amount of your salary for it to go straight to your savings account. You cannot spend what you cannot see!

Image Credits: pixabay.com

Reset your perceptions about saving money. There are benefits to moving forward. And, moving forward you must do!

Sources: 1 & 2

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Surefire Ways To Save Money As A First Time Parent

Congratulations on becoming a new parent! Welcoming another human being into this world can change your life in many ways. Most of these changes are for the better. While, some changes are challenges too.

I am referring to the hefty price tag attached to child-bearing and child-rearing. You have to spend about S$8,000 to S$18,000 a year for that.

You read that right! You will be spending five figures on groceries, clothes, toys, diapers, hospital visits, and daycare. With a growing list of expenses, you must rethink how to manage your financial life after having a baby. Here are some tips to help you out:

SHAKING THINGS UP

You and your partner have had a working budget for years. And this household budget seem to work fine. However, you have to reset your budget once the baby comes. Your pooled incomes, savings, and investments shall cover your child’s expenses.

Begin by saving for the delivery by taking up Medisave’s Maternity Package. Using Medisave for childbirth can help offset the cost of your hefty delivery. Roughly, you can claim about S$450 per day on hospital stay, S$900 on prenatal expenses, and S$750 to over S$2000 on surgical procedure.

For instance, you wife had a Cesarean delivery and was hospitalized for two days, you will be able to claim about S$900 on prenatal expenses, S$900 on hospital stay, and S$2,150 on surgical procedure. This sums to about S$3950 worth of claims.

FILLING THE PIGGY BANK

It comes as no surprise that education will take a huge toll in your expenses for the years to come. Thus, setting up an education fund for your beloved can help you in the long run. While taking up an education loan is always an option, the cost of schooling gets higher each year. You must start saving money along with the arrival of your little one.

A scenario close to my heart is the effects of my uncle’s death. My uncle is the breadwinner and his son has not yet finished his schooling. As he continue his secondary education, he finds it difficult to fuel his financial resources. If only my uncle set up an education fund beforehand!

Saving up for your child’s education can cushion potential financial bumps. This way, your child will not have to compromise his or her education.

SETTING UP A CAPSULE WARDROBE

Along with the trends of minimalism and sustainable living comes the existence of the capsule wardrobe. A capsule wardrobe enables to the owner to keep key pieces that he or she can mix and match in the years to come. The only challenge when it comes to toddler is that they grow up so fast!

Matching outfits or assorted clothing can be adorable to look at! However, your infant does not need twenty sets of outfits! He or she will grow out of these clothes faster than you can post about it on Instagram. Thus, you must limit your child’s wardrobe. Allow a set of basic items with interchangeable colors and patterns to full your drawer. You do not want to spend on designer clothing that your child will surely ruin with stains and other mishaps!

Image Credits: pixabay.com

Here are just some ways to save money as a first time parent. Make it a habit to check children’s websites and forums for ways to create your own baby food or to conduct your own reading class. Nothing is impossible with a little determination from a parent!

Sources: 1& 2

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How To Fool Yourself Into Saving Money

If money could talk, my wallet would be having a farewell party. I am not exaggerating! The weight of the Yuletide Season has been hard on my budget. You see, we are constantly bombarded with flashy sales and social gatherings.

The materialistic temptations becomes harder to resist due to the year-end bargains. Not to mention, the convenience of swiping a credit card makes spending easy!

Fortunately for you, there are other strategies that you can employ to save money. See how much you can potentially save with these four money tricks!

PUSH THE AUTOPILOT

How can you spend money that you do not see? This is no “vanishing coin act”! Instead, I am referring to automating your savings. Setting up an automatic transfer to your savings account can help you fulfill your financial goals. Whether you are looking forward to the night market or the BTS concert in Thailand, your expenses can be covered by your savings.

There is truth to the phrase: pay yourself first. Allotting a portion of your income to personal savings is as easy as allocating a budget for your phone bill. Upon getting into the habit of saving, you will be able to resist the temptation of spending. Ask your bank for guidance in automating your transactions.

EVERY CENT COUNTS

As I was walking to a dollar store, I saw an elderly man leaning towards the coin he just dropped. No matter how small a currency may seem, every cent counts. It is only logical to say that keeping your loose change in the course of the year can add up to a few hundreds of dollars! So, consider developing the habit of growing your cents.

Begin by getting an empty jar. You may turn it into an arts and crafts activity by having your child decorate the surface of your jar. Afterwards, empty the contents of your wallet every three days. Pour all the loose change into your decorated money jar. By December, you may exchange these coins for bills at your local bank. Growing your money jar will not only declutter your wallet, but also grow your wealth.

REMOVE THESE NUMBERS

Let us face it! Online shopping has been more prevalent than ever. The mere fact that you can get a blanket set from IKEA Singapore within three business days only shows how convenient it is to shop. The virtual market’s prompt gratification can breed addiction. Personally speaking, a friend of mine gets various packages sent on a weekly basis. It is crazy how each one comes from different parts of the world!

You open more rooms for financial vulnerability by setting up a customer account and saving your credit card information. So, consider deleting your online shopping accounts.

Adding an extra layer of difficulty while shopping gives you more time to weigh whether you really need to purchase an item or not. If you lack courage to delete the information on your own, you may ask the help of your trusted spouse. Who knows? This third party intervention may just be the solution to avoid impulse purchases.

A SINGLE QUESTION

As I was walking inside a fast-fashion store, I realized how random purchases can take a toll into my finances. Stocking up on adorable yet unnecessary items on Daiso can affect my budget for the next day. If only you can ask yourself a single question!

Do you believe that a single question can change your spending outlook? Well, it sure is possible! Who knew that a sequence of words can convince you to leave a shop without a cart full of non-essential items.

Simply ask yourself this: “Did I need it yesterday?” If you do not need it yesterday, you probably do not need to buy it today. By asking acknowledging whether an item is a need or want can help you stick to your budget.

Image Credits:pixabay.com

Saving money does not have to be a chore! May these easy tricks help you reach your savings faster than you would have thought.

Sources: 1 & 2 

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Surefire Ways To Save Money As A Student In 2019

As a student, keeping a budget may sound intimidating or boring. However, you must understand that having a budget is essential to enjoying your academic life. Saving extra cash while sticking to your budget will help you gain control over your finances, especially in Poly or Uni.

May the following tips aid in keeping your wallet afloat!

TAKE ADVANTAGE OF YOUR STUDENT ID

Not many of us take pride in our student identification cards (ID). Do not get me started with the image attached to it! Well, your perception may change upon knowing how powerful your ID is. The potency of your ID may pour outside the halls of the school. Many retailers offer discounts or freebies upon the presentation of the student ID. For instance, I used to take advantage of the ticket discount in the nearby cinema. While, my sister’s Alumni ID doubles as a Nets FlashPay card.

Image Credits:pixabay.com

Check with your student services department to learn more about the discounts that are readily available to you.

EAT AT HUMBLE PLACES

With a youthful spirit, dining among friends is a common pastime. Consider eating at kopitiams rather than spending your allowance on restaurants. Gain a sense of nostalgia by searching for the nearest kopitiam.

Kopitiam in shopping centers allow you to go cashless. Kopitiam cards are available for top up in denominations of S$2, S$5, S$10, S$20, S$50 and S$100. Use this card to eliminate 10% off your transactions!

LOOK FOR A PART-TIME JOB

Widening your streams of income beyond your monthly allowance allows you to save more. If your academic load and schedule permits, you may consider acquiring a part-time position. Begin by asking for the vacancies in your university.

Some universities provide students with convenient jobs such as in libraries or computer labs. The administrators at such places understand the importance of attending classes and making extra income. Otherwise, you may consider various home tutoring options.

Image Credits:pixabay.com

Fulfill your academic and financial responsibilities this coming year by finding efficient ways to stick to your budget, to save extra cash, and to widen your streams of income. Good luck! 🙂

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