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Being financially responsible is vital for your health and your financial life. Spending less than what you make each month entails that you live within your means. For many Singaporeans, it is a lot easier said than done.
Start with small financial changes to alter your lifestyle!
#1: TRY BACKWARD BUDGETING
Write down your income and start subtracting each monthly expense. If you get a negative number, you are spending more than you make. You need to cut back. Focus on reducing your expenses to fit your income.
#2: SAVE FOR LARGE PURCHASES
People often use credit cards for large purchases that they cannot afford entirely, such as a new air conditioner. It is best to set aside some money each money until you have saved up enough to buy it outright. Do not purchase something that you cannot afford to buy.
#3: WAIT FOR SALES
12.12 is right around the corner! Save money on your favorite brands or large ticket purchases by waiting for sales. You can often predict when an item will be discounted. Perhaps, a new model will come along. Take advantage of year-end sales!
#4: ASK FOR A LOWER PRICE
Sometimes, all you need to do to save cash is to ask. If you are a long-term client who has never made an overdue payment, you may be entitled to a loyalty discount. Affordable vacation packages can also be offered to you once you ask for flexible travel plans.
#5: PAY WITH DEBIT OR CASH
Leave your plastic cards at home. Try to buy things that you can afford using cash or your debit card. Be strategic and calculate your moves. Consider apps to automatically put money in your savings every time you use your debit card.
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#6: STOP KEEPING UP WITH THE TRENDS
Trends come and go. Resist the pressure to have the same material things as the people around you or the people you see online. You may be able to use credit cards and loans to fake wealth for a brief period, but you will pay for it later. That is more painful.
