The term “cost of living” can be translated as the money needed to uphold our current lifestyle habits.
When finances are on a stretch, lowering the cost of living can weigh heavily on our minds. If you’re ready to hit the pause button on your spendings or make lifestyle changes because of a recent job loss or pay cut, that’s not impossible.
Downgrading can be a powerful punch in the face for the prideful. But when it comes to finances, it’s a massive boost for maintenance. Take a good look at your money matters right now and decide if it makes sense for you to downsize. Remember that selling your property takes time, so plan ahead and get started early.
But sometimes, selling your home can be made secondary by getting rid of your car instead. With most of us shifting back to working from home, maybe you don’t really need a vehicle to add to your existing financial burdens?
Rent out rooms
Image Credits: ohmyhome.com
For peeps who are not so keen on selling their house, see if you can empty a room or two to rent out. This presents a quick solution to bring in extra cash every month, on top of your salary.
Alternatively, you can also choose to downsize and then rent out a small room for someone to occupy temporarily. But this method might only be suitable for people who don’t mind sharing their living spaces with an outsider. Be sure to discuss thoroughly with your family members beforehand.
Minimise your energy consumption
Your current electricity appliances can be the culprit contributing to your steep monthly bills. Check to see if they are energy-efficient and make the switch if they aren’t. Since they are products you use for a long time to come, be sure to do your research and ask the salesperson about the specs before buying.
Another factor to consider is your air-conditioner. Yes, we get how Singapore’s weather is so humid and unbearable at times, but if you want to bring down your cost of living significantly, learn how to embrace the warmness. Can’t seem to give up on that? Use the timer setting to work your way around it when you hit the sack.
Rework your budget
Image Credits: procurementexpress.com
As we approach mid-year, maybe it’s time that you take a look at the budget you’ve drawn at the start of 2021. Changes are inevitable, and it’s okay to replan your spreadsheet to accommodate your income changes.
Study the spendings closely you have each month and maybe let go of a few inactive subscriptions. Examine if you genuinely require multiple content streaming services, or you could just do with one for the time being.
Singapore is undoubtedly a city with a high cost of living and seems to rise a little more each year. Unless you’re planning to move to another country with a lower cost of living, consider the above strategies to cut your money outputs.
Saving is a habit that takes time to build. It’s never too early to start teaching your child the importance of saving and spending wisely. With My Account, you can keep track of how much you save and add features to meet your growing needs.
Start by opening a My Account for your child and receive a POSB Smart Buddy Watch with a Limited-Edition Strap (Worth S$45) to keep track of their daily spending.
Reward:
Receive a POSB Smart Buddy Watch with a Limited-Edition Strap (worth up to S$45)* when you deposit and maintain average daily of S$1,500 for a 6-month period.
*Limited to first 600 redemptions only, while stocks last.
How to be rewarded:
Promotion period is from 2 March 2021 to 30 June 2021.
Please prepare the following required documents prior to your application.
About POSB Smart Buddy
POSB Smart Buddy is the world’s first in-school savings and payments wearables on your child’s wrist. It lets your child tap to pay in school and at selected merchants, check on balances, and track fitness levels.
As a parent, enjoy greater convenience in managing your child’s finances and encourage smart living and saving habits – all with an accompanying mobile app.
It is fair to say that most of us want to achieve financial freedom. To have enough savings and solid investments to afford the lifestyle you wish to can sound really attractive. Unfortunately, finding that freedom can be challenging.
Many people hold debt, overspend, or encounter challenges that make financial freedom challenging to achieve. However, all hope is not lost. Develop and maintain these simple financial habits if you want to attain financial freedom.
#1: Set specific goals
A goal like “I am going to be rich one day” is vague. A better way to set targets is to use the SMART technique. They should be Specific, Measurable, Achievable, Realistic, and Time-focused.
You should be working towards a SMART aim like “I am going to increase my savings by 1% a month for twelve months.” Write your desire down in a journal, and make it your mantra. Specific goals lead to accurate results, so cut out that fluff thinking.
#2: Write a budget
Image Credits: pixabay.com
Budgeting is essential for wise money management. Instead of squandering money away and realising reason why i’m broke, it’s better to start analysing your spending habits.
Ensure your bills are promptly paid and your savings are funded before allocating money to luxury expenses or feed your lifestyle inflation. Understanding where your money goes each day is the best way to control your urge to splurge.
#3: Clear your debts
With existing debts looming over your life, financial freedom seems like a faraway dream. When you owe financial institutions money, don’t forget that the interests are rolling.
To eliminate debt, you may want to try the pyramid strategy. Pay off your smallest debt first, then allocate that money to your next-smallest bill, and so on until you have paid your debts off altogether.
We can’t emphasise enough because it’s one of the stablest ways to grow your savings. If you have a direct salary deposit from your employer to your bank account on payday, ensure a percentage of your income goes into savings right away.
It’s easy to set up recurring transfers to send money to a specific saving account every time you get paid, so you shouldn’t be giving any lame excuses. Once the automation is in, the routine will ease you into saving, so resist the urge to withdraw.
Take ownership to have at least a basic understanding of how money works – be it in the topic of debt or investments. Read books written by experts or consider taking some courses to develop your knowledge of money.
Speaking of which, do you know that Seedly is organising a Personal Finance Festival 2021? The most extensive personal finance event in Singapore is happening on Saturday, 10 April 2021, from 10am to 5pm. Read more about it here.
Yes, the market is volatile and can occasionally crash. Unforeseen circumstances can cause even the most robust markets to shrink. But without risk, there is no return. As such, the stock market is one of the greatest ways to grow your wealth.
If you know not where to get started, how about beginning your journey through Robo-advisors? From OCBC RoboInvest to DBS digiPortfolio and Stashaway, there are several local options for Singapore investors.
#7: Monitor your credit scores
Your credit score is the first thing lenders will examine when you wish to make a major purchase, such as a car or a house.
Do you know how to grab hold of your credit report? You can get a copy from the Credit Bureau (Singapore). Each CBS Credit Report is chargeable at S$6.42 (inclusive of GST). Simply make a purchase online, at any SingPost branches, at the Credit Bureau office, or CrimsonLogic Service Bureaus.
If you achieve financial freedom but then neglect your health, your hard work could go to waste due to unexpected healthcare costs. Constant exercise, eating right, and avoiding unhealthy lifestyle choices will benefit you in the long run.
While you take of your health, don’t forget to keep an eye on your things. Making sure that they last longer can help you save money.
This is true for everything, from mobile phones to laptops and cars. Keeping them well-maintained is likely to increase their lifespan and save you money on costly repairs or replacements down the road.
#9: Don’t exceed your means
Frugality is frequently on our radar, and you might have read about it in several money-themed blogs too. But you know what? It is an excellent trait for achieving financial freedom, and we’re going to play it like a broken record.
The ideal way to live within your means is to distinguish between things you want and the things you need. Just because you can afford something does not mean you need to buy it. If there’s a cheaper option out there, go for it.
#10: Talk to an expert
Image Credits: Great Eastern
Once you have accumulated some savings, talk to a professional about how to manage your money. Picking the right financial advisor who is legally obligated to act in your best interest instead of theirs is vital.
Final thoughts
While financial freedom may seem like a daunting goal to reach, it is well within your means to achieve it! Taking a disciplined approach and developing the abovementioned habits over time will help you get to your desired state of financial freedom in no time.
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
Image Credits: thespruce.com
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
Image Credits: ediblecommunities.com
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!
* Update 27 April 2021: The crediting rates for new Dash PET sign ups with effect from 27 April 2021 will be 1.3%* p.a. for the first year for the first $10,000, and 0.3%* p.a. for the first year for amount more than $10,000. Crediting rate is non-guaranteed.
Dash PET by Etiqa Insurance, the latest insurance savings plan available on Singtel Dash, allows users to Protect, Earn and Transact – basically taking care of you! You can earn up to 1.7% p.a.* with no additional criteria required, making it absolutely hassle-free! At 1.7% p.a.*, this makes Dash PET highly attractive especially given the current climate of uncertainty and falling bank savings interest rates. Here’s how Dash PET can take care of you.
Singtel Dash is an all-in-one mobile wallet for your everyday needs, from your commute to paying at your favourite hawkers, supermarkets and restaurants, and even for your online purchases.
Enjoy attractive returns with capital guaranteed
Earn 1.7% p.a.* for your first S$50 – $10,000, and 1.2%* for amounts above S$10,000! This means that up to the first S$30,000 earn attractive returns of $410 (1.37%) per year. Ensure that you maintain a minimum account value of S$50 to start earning these high interest rates on your funds. You will be glad to know that your capital in Dash PET is guaranteed. It also comes with SDIC protection.
You won’t be kept on a tight leash with Dash PET (pardon the pun)
This insurance savings product offers the ultimate flexibility by having no lock-in period. Once your account is active, you can top up your funds anytime! This can be done at your convenience via Dash wallet or PayNow from S$1, or via eNets (minimum S$50 top up).
If you wish to use your money, you may withdraw anytime from S$1 to your Dash wallet (free) or to your bank account via PayNow (S$0.70 transaction fee applies for each transaction).
Highly accessible given low entry barriers
Some financial instruments in the market may require hefty contributions or long lock-in periods, which may not fit into some people’s financial needs. With Dash PET, all you need is S$50 to start saving and insuring. For instance, students can save their allowance or internship pay into Dash PET first to earn attractive returns. They can then withdraw via their Dash wallets to pay for their everyday expenses like their favourite bubble teas and even hawker meals.
Self-employed or gig economy workers who may not have regular monthly income can take advantage of Dash PET to save as it does not require them to complete the myriad of tasks required (e.g. meeting monthly salary crediting, minimum spends, etc) to unlock bonus interest rates.
Finally, there is no fall-below fee if the account runs low, so savers are not penalised when they have higher expenses for the month. One thing to note though, you’ll need to maintain at least S$50 average daily Account Value for the calendar month to enjoy the rates of return and Dash PET benefits.
Takes Care of You
The value provided by Dash PET is immense. It allows your capital to grow at an attractive rate, offers the flexibility for you to withdraw funds for everyday expenses and protects you by offering insurance coverage. Furthermore, the Protect element comes from the layer of insurance coverage of up to 105% of account value in case of death as well as financial assistance benefit for Covid-19.
As demonstrated, Dash PET is the PET that takes care of you by helping you to save and insure better!
All it takes are 3 simple steps to start your savings journey with Dash PET:
Download the Dash mobile app (if you are not an existing user)
Sign up for Dash PET through the Dash mobile app
Top up your Dash PET account from either Dash Wallet, eNets or PayNow
In these uncertain times, it is prudent to consider safe and flexible options to start saving smarter and allow your hard-earned savings to work harder. With Dash PET, Singtel Dash aims to be the companion app for saving, insurance, payments and more!
Disclaimers
The information is meant purely for informational purposes and should not be relied upon as financial advice.
Dash PET is not a bank account or a fixed deposit. It is an insurance savings plan that earns a crediting interest rate.
* Guaranteed 1% p.a. + 0.7% p.a. bonus on first S$10,000 for first policy year. Guaranteed 1% p.a. + 0.2% p.a. bonus on above first S$10,000 for first policy year.
This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). This advertisement is for general information only. Terms apply. Full details of the policy terms and conditions can be found in the policy contract on dash.com.sg/dashpet. Protected up to specified limits by SDIC. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. This advertisement has not been reviewed by the Monetary Authority of Singapore. Information is accurate as at 1 February 2021.
