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.
As I looked at my balance, I was overwhelmed by how fast my salary had disappeared. I’m not the only one! Many of us handle daily expenses and unexpected costs one day at a time, especially those living paycheck to paycheck. With the high cost of living, unnecessary purchases, and unforeseen expenses, why is it so challenging to save money? Here are some key reasons:
#1: NOT PRIORITIZING DEBT
Debt can be a major obstacle to saving money. The desire to pay off debt rather than save is strong, especially with revolving debt like credit cards. Interest rates on these accounts can fluctuate, often increasing the amount owed.
For example, the average interest rate on credit cards in Singapore is around 25% per annum. Consolidating debt with a low- or no-interest card or taking out a lower-interest personal loan can help ease this burden.
#2: IMPRESSING OTHERS WITH SPENDING
Social pressures can lead to overspending. Maybe friends invite you to an expensive restaurant, and you go along, only to split a hefty bill. Or perhaps you use a bonus to buy a status watch to fit in with big-spender pals. I recall a colleague who stole money from the company just to maintain face in their religious community.
If you find yourself overspending with friends, consider more affordable activities like museum-hopping, hiking, or local events. These are simple ways to save money while still enjoying time with friends.
#3: HAVING INSUFFICIENT INCOME
Your earnings need to cover your expenses, but sometimes unexpected costs outpace your paycheck. Keeping a budget helps track spending and identify areas for adjustment. For example, if your rent increases by 12%, you’ll need to find the extra money. In such cases, a side hustle might be beneficial.
#4: SHOPPING EXCESSIVELY
Shopping excessively doesn’t necessarily mean always filling your online cart. It could mean not being strategic about your spending. I’m guilty of this, especially since I prefer designer makeup and skincare for my sensitive skin. For instance, daily trips to a grocery store are more expensive than bi-weekly bulk shopping trips.
Making lists, tracking prices, and using coupons and cashback offers can help save money and even make the process enjoyable.
#5: LACKING MOTIVATION TO SAVE
Saving money is challenging if you don’t have a compelling reason. You might be overly focused on the present or unsure about future goals. Creating a savings plan starts with asking yourself where you want to be financially in the next 5 to 10 years and what you need to do to have “enough” money.
#6: INCREASING EVERYDAY EXPENSES
Many people debate whether the rising cost of living is as bad as it seems, but most Singaporeans have felt the pinch in recent years. Inflation affects housing, utilities, and groceries, and wages haven’t kept up.
#7: LACKING THE INSTINCT TO SAVE
Saving for the future isn’t a natural human instinct. Our brains struggle to think about the future in concrete terms. However, we can either trick our minds into better future planning or make saving money automatic. Behavioral economist and Nobel Prize winner Richard Thaler suggests, “If you want to help people accomplish some goal, make it easy.”
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By understanding the reasons why you need to save and making mindful adjustments, saving money can become more achievable.
Nobody ever wakes up one morning and thinks, “I want to be broke.” A hefty loan here, a bad investment there, and a long credit card statement later – you have no idea how you landed in this state. You are living paycheck to paycheck without savings intact.
What can you do to turn the tide? Start by reading this article and applying these lessons into your life.
#1: THE POWER OF SETTING CLEAR FINANCIAL GOALS
Goals mark your direction in life. If you do not have a clear destination to work towards, it can be difficult to find the passion or motivation to save. Whether you are eyeing on purchasing a flat or figuring out how to pay off your debts, crafting a plan can get you there.
As you set your financial goals, consider making them SMART. Financial goals need to be specific, measurable, attainable, realistic, and time bound. Creating goals using the SMART method can help you ensure that you are working on an achievable goal within the timeline that you set. Stay on course!
#2: DON’T BUY WHAT YOU CAN’T AFFORD
Spending less than you make and buying what you can afford seem like simple personal finance rules. However, these are easier said than done. You can get distracted with the consumer-driven society that tempts you to live beyond your means. When this happens, a good rule of thumb is to save at least 15% of your income.
If you find it hard to save money, try paying for groceries and clothes with cash instead of a credit card. Take it one step further by using a budget per month. Withdrawing a fixed amount every month can help you to become more aware of your spending choices.
#3: EMBRACE THE FINANCIAL WORLD
The majority of personal finance lessons do not center around financial education, but on financial behavior. If you can modify your behavior with money, you can alter your financial future. Remember that you do not need to be a financial expert to prepare an emergency fund or to save for retirement. Start by building a solid financial plan and committing to it.
#4: THE IMPORTANCE OF INCREASING YOUR INCOME
Search for part-time jobs such as freelancing or dog walking to grow your income. You can take on other positions in the same company too. If you feel like you have reached the glass ceiling in your field, consider looking for new career paths to generate more income. Increasing your income can help your financial future.
#5: INVEST SMARTLY, AND NOT IMPULSIVELY
Investing is a good way to protect and grow your assets. However, the talent of wise investing does not come to us all. You may be succumbing to emotions and invest impulsively, hence you win big or lose big.
As a precaution, have an advisor who is trustworthy and credible. Research on your part is vital as well. It will give you the knowledge and confidence you need to make smart investments.
#6: BUDGET YOUR MONEY
It is understood that budgeting plays an essential role in controlling your spending, paying off debts, and staying on track with your financial goals. Creating a budget starts with adding up all your expenses for the month and subtracting that amount from your total income.
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Set monthly and daily spending limits to adjust and make up for any oversights. You can create a budget using a notebook, a spreadsheet, or a budgeting app. Use a tool with which you are most comfortable.
Are you beginning to plan for your financial future? Or are you hoping to make a down payment on a big purchase or preparing to start a family?
Saving money is an integral part of personal finances, but it can be hard to refine and practice. For some, saving money can feel downright impossible! However, with practice and patience, you can turn a new leaf on your money-saving journey.
Need some motivation? Building up your savings account can be easier if you take on these money-saving challenges that are sure to guide you to more excellent financial health in the near future.
#1: Introduce a “no extra spend” week
One of the hardest things to do when saving money is figuring out where in your budget that extra cash will come from.
Cutting out excess spending can be a great way to create more cash flow, but it’s important to ease into it so you don’t become overwhelmed and give up too quickly. Try setting aside a single week and limit all your spending to absolute essentials: bills, groceries, and any necessary transport costs.
Determine a small percentage of your monthly income (be it 1%, 5%, or even 10%) and arrange an automatic transfer that pulls that money into your savings account as soon as your paycheck lands. Over time, that will build up into some substantial added savings!
#3: Clear out your food pantry
Especially since the pandemic has made food delivery so inviting, it can be hard to remember what’s left in your food pantry. We know just how it feels like as foodpanda-ing or dapao-ing something is much faster and convenient.
But still, you want to force yourself to clean out all the food in your cupboards and intentionally cook or use up everything you have been storing for too long. This will aid you to save money and make more space in your kitchen!
#4: Borrow, don’t buy
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Are you struggling with the need to bring in new items but don’t want to spend the cash? Try swapping out buying for borrowing for a month.
Every time you feel the urge to purchase something new, see if a friend or coworker (or even a close neighbour) has a version you can borrow. You would be surprised by how much money you save just by sticking to this principle!
#5: Set aside your spare change
Do you use a lot of cash daily? Start saving even more of that money by designating a certain amount as your spare.
For example, it can be a simple S$1 coin. Every time you receive S$1 from your favourite aunty at the Kopitiam, drop it into a piggy bank. These spare change can add up!
Other than the 1% challenge introduced earlier, the 52-week challenge is also one of the most famous money-saving techniques.
It has you begin setting aside a small (and increasingly growing) amount of money every week. That money sits in a jar or drawer and increases with every new week when you add to it. The best thing is that you just need to start with a dollar from the first week.
Keep increasing a dollar as you go (S$2 in the second week, S$3 in the third, and so on), and by the end of your 52-week challenge, you would have saved a little less than S$1,400!
Or if you think you can raise your game, why not go for the 365-day difficulty instead? This means rather than saving an amount each week; you do it for every single day of the year. But do set a realistic amount lest you backslide and abandon the whole challenge altogether.
#7: Sell your stuff online
There are several platforms to sell your stuff online. Ladies with neverending piles of clothes can try selling their clothes with Refash. Simply pack, send, and receive cash or credit in 30 days! Click here for more information.
For more general kinds of stuff, you can check out Carousell if you haven’t already. I’ve personally sold a couple of items on the Singapore-based app and think it’s a rather innovative platform for buyers and sellers to interact.
Or since most of us own a Facebook account, why not try Facebook Marketplace? You can easily create a listing under various categories, including home goods, pet supplies, and even properties for rent/sale.
Beware of scammers, though.
Final thoughts
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You don’t have to take on the abovementioned challenges all at once since that would be overwhelming. Pick and partake in the ones you think are interesting and feasible. For example, after reading this article, why not put down your phone and start emptying your food pantry?
Little actions can lead to unexpected outcomes. Keep at it!
Monopoly is a board game that has been causing family feuds since 1935. Monopoly was first marketed in 1935 during the Great Depression. It was an instant success and became a best-selling game in United States. Since then, over 275 million game sets were sold worldwide.
What is amazing about Monopoly is its ability to mimic financial scenarios in real life. On that note, here are four valuable real-estate and finance lessons that you can reap from the game.
#1: ALWAYS HAVE CASH ON HAND
In Monopoly, having cash enables you to purchase properties and pay fees for unlucky turns. You may need to shell out some cash to pay an opponent or to pay for a “Chance” card. It is important to always have cash on hand whenever you play. Do not spend all your money in one go!
In a similar way, you must spare some cash for unforeseen situations. The game teachers us about the importance of budgeting and saving money. You need to save enough money to cushion the blow of rough times, such as during this pandemic. Establish your emergency fund by identifying your current financial standing. It is best to build a fund that can cover about six months’ worth of your living expenses.
#2: DIVERSIFICATION IS IMPORTANT
Let us go back to the game itself. If someone lands on your property, you will earn money. Players usually buy multiple spaces or properties around the board to increase their chances of earning money. Chances of earning are slimmer if you only have a few properties on the board. The same can be applied in real life.
You need to diversify your portfolio and scatter it throughout the different possibilities in order for you to maximize your earnings. Instead of putting everything in a single basket, make sure to diversify your portfolio with bonds, stocks, and so on.
#3: PLAY THE LONG GAME
Being patient is essential whenever you play Monopoly. You see, the game continues until there is a last man standing (i.e., the other players have gone bankrupt). Much like the game, you are playing for the long haul. Meeting your financial goals is a journey and not a sprint.
Whether you are saving up for your 2021 vacation or your upcoming retirement, you need to be patient. There will a be a few bumps and celebrations along the way. For instance, you may pay off your student loans first before purchasing a car. Setting up a new business venture will also take time and involve a lot of ups and downs. Ultimately, your hard work will help you achieve your goals.
#4: EXPENSIVE IS NOT ENTIRELY THE BEST
The most expensive assets may not always be the best decisions. Most Monopoly players want to earn the Park Place and the Boardwalk since they have the biggest payouts. However, they are also the most expensive pieces to maintain. Many people lose at Monopoly by using this strategy because they do not pay attention to the overall cost. Instead, they only pay attention to the cash flow.
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Those who win at Monopoly are the ones who focus on the value gained for the price paid. You will not win by merely owning the most expensive assets. You will win by making the most money. In investing your money in the real world, you will win by selling high and buying low. Zeroing your attention to the most expensive assets may set yourself up for losses.
Anna Agoncillo
Celeste Elle
