how to save money Archives | Page 2 of 23

6 Bulletproof Saving Hacks For Millennial Singaporeans

As a Millennial Singaporean, it is easy to be tempted to travel and to socialize (talk about #YOLO or #NOFOMO). You just want to make the most out of your youth. Enjoying the wonders of the present and preparing for financial freedom is a difficult job!

Hopefully, these saving hacks below will enable you to make the right monetary decisions and live a prosperous 2017.

MAXIMIZE YOUR CASHBACK

In this day and age, almost every purchase qualifies for a cashback or rebate. Do you need a new dress for work? Or, do you need to expand your health coverage? See if you can get a little cash back!

Try to make the most out of your credit card rebates to save a decent amount of money for emergencies.

AVOID THE EMOTIONAL SPENDING

Studies (like this) have shown that Millennials are prone to spending based on their emotional states. The four common emotions that lead you to overspend are hunger, anger, loneliness, and tiredness. These emotions may lead to purchasing something that you do not need or want.

Avoid experiencing “buyer’s remorse” by increasing your awareness while you shop.

SPOT THE BEST DEALS

As Millennials, we spend countless of hours online. Use its potency for the greater good by searching for the best deals, promo codes, coupons, and vouchers islandwide. Keep a close eye on the local websites such as Flipit.com Singapore, Groupon, and Money Digest.

Image Credits: pixabay.com

MAXIMIZE YOUR RESOURCES

As a young adult, you may feel the urge to keep up with the latest trends on fashion and technology. Who can blame you? Purchasing new clothes and devices can boost one’s confidence. However, your spending habits may take a toll on your finances. Choose to be practical instead!

Account your resources to know which areas you can cut cost. Ditch your underused cable television and switch to a Netflix or Toggle account on your laptop. You may also refrain from purchasing new shoes by revamping your simple shoes with laces and ribbons.

DO NOT TURN A BLIND EYE

Being in your 20’s does not guarantee that you are immune to financial woes. Red flags, such as outstanding bill notices, are there for a reason. Make it a habit to account how much money goes in and out.

Use money-tracking tools to aid you in this process!

USE THE POWER OF TECHNOLOGY

Most millennials are innately tech-savvy. Use the power of technology to boost your knowledge on investments, financial services, and personal finance. Appreciate how lucky we are to have the luxury of accessing information right at our fingertips!

Image Credits: pixabay.com

You may also seek guidance and support from the experienced financial advisers by interacting with them thru social media.

Sources: 1 & 2

Surefire Ways To Save Money On Your Next Income Tax

Anyone who takes part in trade and business is chargeable with tax. It is known that tax rates in Singapore are relatively lower compared to other countries in the world, making it more attractive for individuals and corporations to participate in some form of exchange in business.

Despite the relatively lower tax rates, no one entirely enjoys the act of filing for taxes! This is why you must employ creative ways to save on your next income tax. Consider these suggestions:

1. TAKE PART IN SUPPLEMENTARY RETIREMENT SCHEME

The Supplementary Retirement Scheme (SRS) is part of the government’s financial strategy to help Singaporeans increase their saving as they age. It is a type of retirement savings scheme that is voluntary, where anyone who has an SRS account may contribute any amount they want, which is still subject to a cap. The maximum contribution is capped at S$15,300 in 2016, a slight increase of S$2,550 from last year’s cap.

The more you save for your retirement using the SRS, the less you pay for your income tax. That being said, two apparent benefits are seen when contributing to SRS. The first being, for every dollar contributed to your account, taxable income will be reduced by a dollar. The second being, 50% of your SRS savings will not be taxed. Additionally, you are eligible to spread your withdrawals over a 10-year period.

2. HIT TWO BIRDS WITH ONE STONE

Fulfill your duty as a steward of goodwill and your duty as a responsible citizen by donating in accredited institutions. Several forms of donation are claimable. The following types of donations will qualify you for a double tax deduction (twice the amount of the donation):

a. Cash Donations
b. Shares Donations
c. Computer Donations
d. Artefact Donations
e. Public Art Tax Incentive Scheme
f. Land and Building Donations

For instance, a donation to the Singapore museums that have obtained the Approved Museum Status with the National Heritage Board is tax deductible.

Related Article: Basic Guide To Taxation In Singapore

3. REAP THE BENEFITS OF CPF CASH TOP-UP RELIEF

If you are interested in increasing not only your retirement savings but also the retirement savings of your loved ones, you might want to consider the CPF Retirement Sum Topping-Up Scheme.

You will be entitled to a dollar-for-dollar tax relief at a maximum of S$14,000 per annum. This entails a cap of S$7,000 for the individual and another S$7,000 for the family members (T&Cs apply).

Image Credits: pixabay.com

Paying income tax can be painful to your wallet. This is why you must take advantage of the many ways to claim tax relief or rebates.

Sources: 1, 2, & 3

How To Enjoy A Thrifty Relocation

Whether you are upgrading to a newlywed nest or downgrading to a cheaper work space, you are starting a fresh chapter in your life. You are leaving the past behind and looking forward to a brighter future ahead. Simply, this transition is exciting! However, I cannot deny the fact that moving day is stressful. This is why it is important that you employ cost efficient strategies to make your life easier.

Begin by devising a relocation plan. Invest a dollar or less in a handy notebook where you can visualize a timeline that leads up to your moving day. For instance, you may start labeling the boxes by week two. Organizing everything is important to prevent spending money purely for convenience.

The next thing that you must focus your energy on is packing the boxes by yourself. You may ask a little help from your kindhearted friends and family if you want. The bottom line is that this strategy saves a decent amount of cash. While packing your stuff, do not forget to label each box.

Let us be honest! There is nothing worse than the hassle of scavenging through a pile of mystery boxes. Sometimes, people would rather purchase new things instead of wasting time in searching for two or three items that they really need. Avoid unnecessary or impulsive buys by marking each box with a permanent marker and writing down what section of the flat it belongs to. Leave your valuables inside specific boxes that you can keep a close eye on. You may even go further categorizing each item in your notebook.

Image Credits: Book Glutton via Flickr Creative Commons

In the process of carefully putting everything in place, you will realize that there are some old investments that you do not mind leaving behind. These said investments are the items that you do not want to bring in your current residence. As long as these items are in mint condition, you can sell them on online marketplaces such as Carousell and Gumtree Singapore. Scam or spam messages are bound to flood you if you display your details in the open. So, set up an independent account just for this. Take down said account once you are finished moving. Selling your old stuff helps you to save money by shipping less and to earn more money on the side.

In the last couple of weeks before your moving day, you must narrow down your options to a single moving service. Make it a habit to get written or documented quotations from different moving services. I am not referring to the nuggets spoken by famous personalities. Instead, quotations refer to the prices offered by the companies. Show these written or documented quotations to the next company to persuade them into matching or lowering down the prices of their predecessors.

I hope that these tips can help you to enjoy a fuss-free moving day. If you can think of other ways to relocate in an affordable manner based on your personal experience, comment below and share your story. Your views are greatly appreciated! 🙂

Sources: 1, 2, & 3

Newbie’s Basic Guide To Smart Shopping

1. BATTLE BETWEEN NEEDS AND WANTS

If you want to be a smart shopper, it is important to stick to what you need to buy and what your budget permits. Knowing the difference between a perceived deal and an actual deal is also a must. For instance, you find a studio that offers 80% off their Pilates classes, but you have no passion for it, then you are still wasting money if you purchase the deal.

2. CHOOSE THE RIGHT CREDIT CARD

Committing to smart shopping entails a credit card that has the best rewards. By that I mean, you must find the best card that aligns with your purchasing habits. For instance, if you intend to save more on flying then get a frequent flyer miles card. To each your own cards match.

3. GET OFF THE ELECTRONIC MAILING LISTS

Most of the stores especially those that are online makes you give out your email details. This can break your savvy shopping strategy. Being a newbie, you may not be able to resist the urge to shop once you learned about the deals available, so it is recommended to unsubscribe from the mailing list right away. This simple change will eventually break the bad habits.

4. STICKING WITH THE MONEY YOU HAVE

If you cannot trust yourself with the responsibility of holding a credit card, then stick with cash and debit card. It is best to spend the money you already have rather than to swim in a pile of debt. You may allocate a portion of your budget per month to a category called “shopping money” so you will be sure that you always have money to spare.

5. FREE SHIPPING IS NEVER FREE

Free shipping is usually offered in more expensive items and by comparing prices you will find out that an item at a lower price is much cheaper with shipping included!

Image Credits: Yoel Ben-Avraham via Flickr

So, when a website offers a free shipping minimum, it is smart to shop what you need and observe if your virtual shopping cart has reached the minimum. This not only gives you a chance to see the prices go up and down to fit your desired budget but it also gives you a chance to save even more money.

6. LOOK OUT FOR DISCOUNT COUPONS AND DEALS

Online shoppers need to know this. Why pay full price for your cart when you can save even more with discount coupons? There are many aggregators out there that offer coupons and deals for online shopping. These sites help benefits customers by giving them varied discount coupons and choices in their shopping experience, by leveraging our relationship with merchants.

For example, shoppers can easily save up to 70% with a promo code for Zalora that can be found on Paylesser.com.

8 Money-Saving Tips That Every Singaporean Should Know

1. CREDIT YOUR SALARY

Get your salary credited into your bank account to dismiss the lure of spending your it right away. Update your bank account details with your employer and follow the terms and conditions of your bank so that your income gets credited correctly. In Singapore, these two savings account will give you the best interest rates per month: OCBC 360 Account and DBS Multiplier Account.

2. CONVERT YOUR CASH

According to the Economist Intelligence Unit, the US dollar has been stronger while the Euro weakens. If the above hack does not work, try converting some of your money to US dollars. This way, it is more inconvenient to spend. The thought of having to go for and pay for the currency exchange will likely to dissuade you from spending!

3. LEARN TO COOK

If you want to save money on food, it is best to learn how to cook. Start cooking simple meals with ingredients that are easy to obtain such as Omelet, Scrambled Eggs, Fried Rice, and Chicken Rice. Consider going to the wet market as items are sold for a cheaper price there. Remember that aside from rent, your food expenses make the largest impact on your budget.

4. READ BOOKS FOR FREE

To satisfy your bookworm urges, visit the nearest public library and rent a series of books – for free! While you are there, you can catch the free financial talk entitled “MoneySense@The LLiBrary: Understanding Loans & Credit” on April 14, 2016. Go to nlb.gov.sg or more details.

5. GET THE CHEAPEST GYM MEMBERSHIPS

It is no secret that Singapore’s fitness centers are expensive. And let us face it, most of you will not even use your membership perks to its fullest! Thus, it is best to go for the most affordable gym memberships such as the ones on this list. Alternatively, you can make use of your school’s facilities as most universities are fully equipped with gyms and other facilities.

6. EXERCISE FOR FREE

Aside from sweating at the gym, get fit by exercising outdoors. Satisfy your weekly dose of exercise by running in the nearby pavements, park or park connectors. You can also cycle around if that is your cup of tea.

7. GO FOR THE LAST YEAR’S MODEL

To save money on your next smartphone, consider purchasing the last year’s high-end phones such as the Samsung Galaxy S6 (the Samsung Galaxy S7 has been released last month). To save even more, you can review the well-designed phones offered by “less popular” brands such as Xiaomi.

8. DON’T FALL FOR THESE TRAPS

Aside from the diversity of eateries, Singapore is known for the diversity of shopping centers. Naturally, tourists fall prey for the huge “SALE” sign on the window of most shops. However, if you lived here long enough, you will realize that sales happen all year round. As long as there is a public holiday coming up, sale signs will be up too! So only buy an item if you really need it!

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, & 3

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