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

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5 Signs You’re Financially Ready to Move Out of Your Parents’ House

Moving out is a significant milestone for many young Singaporeans. While living with parents until you’re financially stable is common in Asian cultures, there comes a time when independence is the goal. But how do you know if you’re truly ready? Well, consider these five signs that you’re financially prepared to live independently in Singapore.

#1: YOU CAN AFFORD THE COSTS OF MOVING OUT

Rent will likely be your largest monthly expense. In Singapore, renting a room or flat is common for singles under 35, unless family support helps secure a private apartment. Apart from rent, consider other costs like furniture, food, transportation, and household bills. Location, size, and proximity to amenities will affect rental prices, so ensure you can comfortably manage these costs before making the leap.

HDB flats are typically more affordable but come with eligibility criteria and waiting periods. Private condominiums offer more flexibility but at a higher cost. Understanding the differences will help you make the right choice.

#2: YOU HAVE AN EMERGENCY FUND

Unexpected expenses, like medical bills or home repairs, are inevitable. Having an emergency fund, ideally three to six months’ worth of living expenses, provides financial stability during tough times. If you haven’t built your emergency fund yet, focus on saving before considering independent living.

#3: YOU CAN PAY YOUR BILLS ON TIME

Paying bills promptly is a key sign of financial stability. If you consistently meet your obligations, it shows you’re managing your finances well. Struggling to pay bills or delaying payments? You may need to improve your budgeting skills before moving out. Consider reducing non-essential spending or finding ways to increase your income.

#4: YOUR NET WORTH IS GROWING

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Financial stability means having extra funds to save and invest. If you’re growing your net worth through investments in stocks, real estate, or other assets and side hustles, you’re on the right track. Even small increases in your net worth show that you’re financially responsible and ready for the added costs of independent living.

#5: YOU ARE EMOTIONALLY READY TO MOVE OUT

Moving out is not just a financial decision…it also requires emotional readiness. Independent living involves managing your own household, cooking, cleaning, and solving problems on your own. If you feel confident in your ability to handle these tasks, it’s a good sign you’re prepared for this next step in life.

IN A NUTSHELL

Living independently comes with both perks and responsibilities. Assess your new financial obligations, such as contributing to your parents’ allowance or paying for insurance, and plan your budget accordingly. Additionally, consider the emotional impact on your family dynamics. Moving out can change your relationship with your parents, so make sure you’re ready for this transition.

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Take your time to plan and ensure that when you do move out, you’re doing so with confidence and security.

Sources: 1 & 2

 

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How to Reach Financial Stability While Adulting

Adulting often feels like a juggling act. You’re managing bills, savings, and responsibilities, while also trying to make room for the things that keep you sane like shopping, travel, or that occasional indulgence. It can feel overwhelming, but you can find balance and achieve financial stability with the right strategies. Start with these steps:

LEARN TO ALLOCATE

Budgeting is the cornerstone of financial stability. One effective strategy is the 50-30-20 rule, which suggests allocating:

a. 50% of your monthly income to fixed expenses, like housing, transportation, and subscriptions.
b. 30% to flexible spending, such as shopping, bag charm collections, and leisure activities.
c. 20% to savings or financial goals, creating a cushion for emergencies.

This formula isn’t one-size-fits-all. Feel free to tweak it based on your priorities and responsibilities. The key is to give every peso or dollar a purpose.

TRACK YOUR SPENDING

Ever wonder where your money disappears? Keeping a detailed record of your expenses can be eye-opening. Apps, spreadsheets, or even a good old notebook can help you identify spending habits and areas where you can cut back.

A practical tip: Some people swear by having a bank account without online access as it requires more effort to withdraw money, which might discourage impulsive spending.

EDUCATE YOURSELF FINANCIALLY

Knowledge is power, especially when it comes to personal finance. Start by reading books or articles from reputable sources like Money Digest or the Government’s MoneySENSE. These resources break down complex topics into simple, actionable advice.

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If you’re ready to take it up a notch, consult financial professionals like planners or accountants. And remember, stay firm on your goals. Don’t let anyone pressure you into overspending, whether it’s a significant other or friends planning extravagant trips.

BUILD AN EMERGENCY FUND

You’ve heard it before: “Save for a rainy day.” But how? Allocate a percentage of your income to a contingency fund. This could be in a savings account or investments that allow your money to grow. Even small, consistent contributions can build a significant safety net over time.

SAVE FOR RETIREMENT NOW

It’s never too early to think about your future. Thanks to the power of compound interest, starting your retirement fund in your 20s can set you up for a comfortable future. The earlier you start, the more your savings will grow, with interest building on both the principal and the interest already earned.

INVEST IN YOURSELF

Before diving into stocks or real estate, focus on the most valuable investment: you. Whether it’s pursuing a degree, learning new skills, or taking courses unrelated to your job, self-improvement pays off in the long run.

Employers value well-rounded individuals who demonstrate ambition and a commitment to growth. Explore free or low-cost learning platforms like the Singapore University of Social Sciences or SkillsFuture Singapore.

ADOPT A HEALTHY FINANCIAL MINDSET

Financial stability isn’t just about numbers as it’s about mindset. Create a lifestyle that’s both enjoyable and sustainable. Learn to view money not as the goal but as a tool to achieve your dreams.

As Melissa Olson, AVP and Wealth RPS Education Coordinator at Johnson Financial Group, puts it:
“Adopting a healthy money mindset involves more than just managing your finances—it’s about creating a sustainable lifestyle that aligns with your financial capabilities and future aspirations.”

By living within your means and developing a strong savings plan, you’re setting yourself up for a lifetime of options and freedom.

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Budget wisely, educate yourself, and never stop investing in your future. The road to financial stability starts with small, intentional steps. Take yours today!

Sources: 1,2, & 3

 

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Why “Buy Now, Pay Later” Might Not Be Your BFF

Browsed any online store recently? You’ve probably encountered the enticing “Buy Now, Pay Later” (BNPL) option. With the promise of splitting payments over weeks or months without interest or hefty fees, it seems like a dream come true. For many, it has been. Yet, as it becomes a tool for essentials like groceries, it’s worth pausing to consider: is BNPL as great as it seems?

#1: BUYER’S REMORSE HITS TOO LATE

Remember the days of saving for that dream pair of sneaks, making payments, and only taking them home after they were fully yours? BNPL flips this script. You get your purchase instantly, and with the click of a button, you’re locked into a commitment before common sense kicks in.

If regret creeps in later, BNPL doesn’t care. Essentially, you’ve handed over control of your wallet.

#2: RISKY CONNECTION TO YOUR CARDS

BNPL payments are often tied directly to your debit or credit card. Miss a payment due to insufficient funds? Expect a late fee. Fail to pay off your credit card balance on time? That BNPL purchase suddenly carries a hefty interest charge. What starts as a seemingly free loan could snowball into a mess of late fees and mounting credit card debt.

#3: IMPULSE SPENDING MADE EASY

Saving up for a purchase gives you time to evaluate if it’s truly necessary. BNPL removes that waiting period, nudging you to click buy without hesitation. So, if you’re going to use BNPL, be intentional. A new wardrobe for a job might be justifiable. A shopping spree because it’s interest-free? Not so much.

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#4: HAVING A MINDSET OF “ZERO” INTEREST

While many BNPL services advertise zero-interest payments, not all plans are created equal. Larger purchases, like appliances or electronics, may come with longer terms and interest. Sometimes, the interest rates are even higher than what your credit card might charge.

The trouble? It’s all too easy to click “BNPL” without fully reading the terms. Once the purchase is processed, undoing it can be a challenge.

#5: TRAPPED BY HIDDEN PSYCHOLOGY TRICKS

One of BNPL’s sneakiest pitfalls is how it breaks down costs. A purchase of S$80 might feel like a mere S$20 every fortnight. While this makes items feel more affordable, it also detaches you from the full cost. Couple this with a lack of financial education and relentless advertising, and many see BNPL as a way to manage money. The result? Early reliance on debt and a lifetime habit of paying things off in chunks rather than saving.

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IN A NUTSHELL

Don’t buy it if you cannot afford it. If you’re tempted, ask yourself: Do I truly need this? Can I pay for it outright?

Financial freedom isn’t about splitting payments or juggling debts. It’s about saving and spending within your means. BNPL may be a tool, but it’s not a safety net. In the end, whatever you’re buying will feel far better when they’re truly yours.

Sources: 1 & 2

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