financial goals Archives | MoneyDigest.sg

Beginner’s Guide to Saving Money in Singapore

Living in Singapore isn’t cheap. With rising costs and temptations everywhere, it can feel tough to set money aside. But whether you’re saving for a rainy day, your BTO, or a well-deserved holiday, getting into the habit now can make a big difference.

Read this simple guide to help you get started.

#1: SET A CLEAR GOAL

Don’t just say “I want to save more.” Be specific! Are you saving for an emergency fund, a new laptop, or a holiday?

Once you have a clear goal, break it into monthly targets. Open a separate savings account to track progress. Naming it something fun like Japan Trip Fund can keep you motivated.

#2: LET YOUR MONEY WORK

Put your savings in an account that earns interest. Local banks like DBS, OCBC, and UOB offer savings accounts that reward you for crediting your salary or paying bills.

Every little bit of interest adds up, and your money grows even while you sleep.

#3: EAT OUT LESS

Eating out often can burn a hole in your pocket quickly. Cooking at home a few times a week can save you serious cash and help you eat healthier.

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Even simple home-cooked meals cost less than most hawker or café food. Plus, you’ll waste less and stretch your grocery dollar further.

#4: USE THE SAVINGS BUCKETS

Organize your savings into three buckets namely:

a. Emergency fund: For unexpected expenses like medical bills or home repairs

b. Short- to mid-term goals: For things like education, weddings or travel

c. Long-term goals: Retirement or financial independence

Having separate goals helps you stay focused and on track.

#5: BE CAREFUL WITH CREDIT CARDS

Credit cards can be useful for rewards, but only if you pay off the full amount every month. Otherwise, interest charges add up fast.

If you find yourself carrying a balance, switch to cash or debit to stay in control of your spending.

#6: PAY BILLS ON TIME

Late payments lead to extra fees and can hurt your credit score. Set reminders or automate payments to avoid unnecessary charges.

If you can’t pay on time, contact the provider early. They might offer an extension or payment plan.

IN A NUTSHELL

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Saving money doesn’t mean you have to give up fun. Start small, stay consistent and track your progress. Even saving an extra S$50 a month puts you on the right path. Small habits today build a more secure future tomorrow.

Sources:1,2, & 3

Top 6 Financial Resolutions for 2025

Whether you’re gearing up for a big year ahead or just want to breathe easier about money, these six resolutions will set you on the right path this 2025!

#1: SAVE MORE, WORRY LESS

Start small and aim big. Set a goal to save at least three months’ worth of your take-home pay this year, and eventually work toward a full year’s cushion.

With Singapore’s rising cost of living, having an emergency fund is your safety net against unexpected expenses. It’s not just about the amount you save but the habit of saving consistently.

#2: BE CONSITENT WITH MONEY

Consistency is your best friend in financial planning. Even small, regular contributions to your savings can snowball over time. Can’t save a lot? No worries as every dollar counts!

For those with long-term goals, consider setting aside funds for regular investments. The earlier you start, the more time your money has to grow, thanks to compound interest.

#3: SET CLEAR FINANCIAL GOALS

What’s your money motivation? Maybe it’s sending your kids to a prestigious school, taking your dream retirement trip, or passing on your family business. Define your short- and long-term goals, and compare them to where you are financially today.

Pro tip: Create a bucket list of personal milestones. Make these goals tangible (e.g., aiming to travel to London by March), and let them fuel your financial drive.

#4: PLAN SMARTER FOR TAXES

Don’t let taxes catch you off guard! Review your year-end statements and identify potential tax liabilities, such as interest or dividends. Proper tax planning can save you from unnecessary stress and money.

Explore tax reliefs like those for CPF contributions, NSmen, or parent and spouse care. Every bit helps when it comes to keeping more of your hard-earned dollars.

#5: CONTRIBUTE MORE TO YOUR RETIREMENT FUNDS

Say it with me: “2025 is the year to prioritize my future self!” Start contributing regularly to your retirement funds, like CPF. The earlier you begin, the more time your money has to grow.

If you’re employed, ensure you’re maximizing your CPF contributions and exploring top-ups to your Special or Retirement Accounts. It’s a simple yet effective way to build a comfortable nest egg.

#6: SHOP SMART, LIVE WELL

Shopping wisely is all about cutting costs without compromising your lifestyle. Take advantage of discounts, deals, and cashback platforms. Buy in bulk for essentials and hold off on splurging until sales events like the Great Singapore Sale or 11.11.

And don’t forget healthy money habits: Pay your bills as soon as payday hits, track your spending, and focus on financial literacy. These small changes can lead to big savings.

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With these resolutions, you’ll not only build financial resilience but also set yourself up for a more secure and stress-free future. So, what’s your first step toward a brighter financial year?

Sources: 1,2, & 3

Set Up Your Money Goals Like a Boss

“You don’t have to see the whole staircase, just take the first step.” ― Martin Luther King Jr.

The first step is usually the hardest. However, you need to take the first step to live your best financial life. The longer you wait to establish your personal budget, the farther away your goals will be. Start by setting your money goals. Money goals include savings, investment, or spending targets that you hope to achieve over a given timeline. Money goals can give you a clear idea of why you are saving your hard-earned money.

Setting money goals is one thing but transforming these dreams into reality is another. Begin by giving your money a “job”.

#1: MAKE YOUR MONEY WORK FOR YOU

In the office, you have to accomplish tasks and finish them in the future. The same holds true for your money goals. What kind of life do you foresee for you and your family? Let money work for you!

Money goals are savings, investment, or spending targets you hope to achieve over a given timeline. Money goals do not have to be set in stone as you will revise them throughout your life.

#2: CATEGORIZE EACH MONEY GOAL

There are diverse types of money or financial goals. You can categorize each money goal as short-term, mid-term, and long-term. Short-term goals typically take six months to five years to complete. These goals include taking a vacation or purchasing a new washing machine.

Mid-term goals are accomplished within a period of five to ten years. It includes paying off your credit card debts and finishing a degree. Lastly, long-term goals take more than ten years to finish. It includes buying a new flat or saving up for your children’s education.

#3: SET A TIMELINE

You cannot achieve a goal overnight! Being specific helps make your goals more achievable.

If you have a toddler that is set to head into university by 2035, you must have a target date for your tertiary education savings goal. If you want to travel Europe for your 10th wedding anniversary, you must have a timeline that you are working toward.

#4: DO YOUR RESEARCH

Look for goal setting tips and resources online to stay on course. Money apps for goal tracking can be helpful too. Additionally, you can use old-school methods such as placing a vision board in your bedroom. Affix a collage of pictures that represent your money goals. If you see it, you believe it.

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Having a tangible representation of the future you are working toward can help you stay motivated. Whatever method you choose, know that it will all be worth it.

Sources: 1 & 2

7 Financial Commandments for Your Thirties

Hitting your thirties signify that you are halfway to retirement. After establishing a financial foundation in your twenties, it is up to you to use the following decade of your life to build and protect your wealth.

Whether you want to purchase a flat or to travel the world, these seven financial commandments can help you stretch your dollar.

#1: YOU SHALL LEARN SELF-CONTROL

Throughout your childhood, your parents or teachers taught you to practice self-control. The sooner you learn the importance of delayed gratification, the better off you will be. Applying self-control makes it easier to stay on top of your finances.

Select consciously spending cash rather than swiping your credit cards. Credit cards are convenient, but you must pay your bills on tip to maintain a good credit score. Do you really want to pay interest on a pair of jeans or a box of cereal? Think about it.

#2: YOU SHALL GET YOUR INSURANCE IN ORDER

Let us face it! You are not getting any younger. You need to sort out your health insurance, life insurance, and other policies. Considering a life insurance is prudent, especially if you have people depending on you.

#3: KEEP ADVANCING IN YOUR CAREER PATH

Developing your skill set occurs in your twenties. In your thirties, you will need to apply these skills to increase your earnings. Start by researching potential career paths and identifying companies where you can fit in. If you have the resources, you can go back to school to further your studies. Alternatively, you can take free online courses to boost your career.

#4: YOU SHALL INCREASE YOUR EMERGENCY FUND

The pandemic highlighted the importance of keeping an emergency fund. Having an emergency fund can help cushion the financial blow of unexpected events. If you started an emergency fund in your twenties, you followed the standard rule of keeping at least six months’ worth of your expenses.

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As your income increases in your thirties, you should also boost the balance in your emergency fund and take your family in consideration. Make it a habit to save money and to pay yourself first!

#5: HONOR YOUR PAYCHECK

Stop spending your entire paycheck in less than a month! Live within your means and do your best to save a portion of your paycheck to propel your future. Gradually increase the amount you save while decreasing the amount from which you live off.

Use the 60-80% of your income to fulfill your needs and allocate the remaining 20-40% of it to your savings and investments. Transferring the money automatically to your savings ensures that you will not be tempted to use it.

#6: YOU SHALL WRITE YOUR WILL

Do you still think that you are invincible? Try waking up in your thirties after a night of heavy partying! Protect the people you love by writing a will. Without one, others will have the power to decide how to split up your estate and how to raise your children.

#7: YOU SHALL NOT COVET THEY NEIGHBOR’S THINGS

As you reach your thirties, you may find yourself in a place where you tend to compare your accomplishments to your peers. Scrolling through your feed can highlight the milestones that your friends have reached such as purchasing a flat or getting married. You can admire your neighbors’ new car or new job. However, you do not need to stretch your budget to keep up with them. Doing so will ruin your finances.

Focus on your financial goals, live within your means, increase your savings, and do your best to be content. Acknowledge your inner strengths and use it to succeed!

Sources: 1 & 2

7 Financial Resolutions That You Can Fulfill This 2022

For the lack of a better term, the period between 2020 to 2021 was “rubbish”. People all over the world had to deal with the adverse effects of the pandemic. Unexpected economic and social shifts occurred. Nonetheless, most of us are ready to bid farewell to the yesteryears.

While many Singaporeans are committing to eat healthy and to exercise more, here are seven financial resolutions that you can consider for a more prosperous year.

1. BROADEN YOUR FINANCIAL KNOWLEDGE

Books and audiobooks provide opportunities to broaden one’s financial knowledge. You can enter the inner workings of great entrepreneurs and investors by reading though the pages of books such as “The Intelligent Investor” by Benjamin Graham, “The Psychology of Money” by Morgan Housel, “Rich Dad Poor Dad” by Robert Kiyosaki, “Think and Grow Rich” by Napoleon Hill, “Raising Financially Fit Kids” by Joline Godfrey, and “The Richest Man in Babylon” by George S. Clason.

Create an achievable list of all the financial books that you want to finish within the year. Set a realistic goal for the number of pages that you can accomplish each week. Start now!

2. CUT DOWN YOUR WATER CONSUMPTION

Singaporeans do not typically worry about clean and fresh water. However, the global supply of consumable water is getting scarce with each passing year.

Consider reducing your water consumption by turning off the tap while brushing your teeth, using less water while gardening, installing a water-saving shower head, and only washing your clothes when necessary. Minimize your expenses and help save the Earth.

3. COOK MORE MEALS AT HOME

Increase your savings by cooking from scratch. Find recipes online or ask your loved ones for their specialties. Cooking more meals at home can reduce your restaurant or take-out expenses.

Calculate your food savings and consider putting the extra cash to your emergency fund or to pay off your debts.

4. BE PROMPT AT ALL TIMES

Time is a valuable resource. There is a reason why it goes hand in hand with money. As the job market becomes increasingly competitive, most companies have minimum tolerance for employee tardiness. Keep your source of livelihood by always being on time.

You do not need to exhaust your resources or skills to remain prompt. Simply set an appropriate alarm and adhere to your organization’s schedule.

5. UPDATE YOUR BENEFICIARIES

With the uncertainties of the modern world, it is important to revisit your beneficiary designations. Adding a beneficiary to your accounts and policies can help ensure that your assets will go to your desired people. Align your will (i.e., last will and testament) to your accounts and insurance policies.

6. SEARCH YOUR HOME FIRST

Search the contents of your home, before committing to a major purchase. There are many ways to use your resources. You just need to be creative and hands-on!

For instance, you may use your old drawer as your baby’s diaper changing table. You can also spruce up your walls by purchasing Very Peri wallpaper online.

7. MAKE THINGS SIMPLER

All of us are drained because of the massive chaos that recent years have brought. Reduce your worries by cancelling or closing the accounts or cards that you no longer use. Then, set up automatic transfers.

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Some financial institutions allow the employer to automate your salary in your bank account. Patronizing this method will lessen the temptation of immediate spending.

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