What Is the Importance of Money Management?

Creating your budget is crucial, but managing your budget is arguably even more important. You cannot just write down a budget at the beginning of the year and never look at it again. You must continuously manage your money with an updated budget to monitor your finances for every month.

Moreover, this budget will guide your plans to achieve your long-term goals. On that note, let us discuss the definition of Money Management.

What Is Money Management?

The process of keeping track of your finances is called Money Management. This includes your spending, savings, budgeting, and investing behaviors. It is the key to helping you save money to accomplish your personal goals. You need to find a management technique that works for you as everyone manages their money differently.

What Is the Importance of Money Management?

There are multiple reasons why managing your money is important to your life. Firstly, it helps you to stay on top of your finances. You will be able to tell whether you are overspending before you get hit with overdraft fees. Money management also helps you to avoid incurring too many fees on your credit card bill.

Secondly, money management helps you plan for your future. My partner and I recently got married. To help save for our wedding, we made some down payments to the suppliers through careful monitoring of our cash flow. Managing your money increases your knowledge of savings and aids in accomplishing your financial goals.

Image Credits: pixabay.com

Thirdly, money management keeps track of your expenses. How much do you spend on rent and groceries? Perhaps, you can cut back on some unnecessary expenses such as your monthly subscriptions.

Lastly, money management increases the sense of security. There is nothing worse than feeling overwhelmed when it comes to your finances. Reduce the unwanted feelings and be able to pay off the next bill by closely monitoring and managing your cash.

Source: 1

Read More...

8 Tips to Look Elegant on a Budget

We all desire to look elegant and classy. Contrary to popular belief, you do not have to spend a hefty amount to look and feel like a million dollars. You can follow certain tips and tricks to present yourself in the most elegant way.

Not only can you make your wardrobe look fancy, but also your bank account!

TIP #1: INVEST IN STAPLE PIECES

Key fashion pieces consist of the most valuable clothing items in your closet, which can provide a foundation for every great outfit. Choose quality over quantity to look expensive while on a tight budget. You can purchase fewer high-quality pieces rather than purchasing more fast-fashion items every month. This will save you money in the long run.

For instance, you can spend S$45 on a premium white shirt instead of purchasing a S$5 poorly made white shirt every month. Staples include basic tees, classic black dresses, pairs of jeans, and flats.

TIP #2: GO FOR THE NUDES

Choose neutral or nude shades to achieve a classy, minimal look. While bold colors are fun to add into your outfits every once in a while, you can make a chic entrance with neutrals.

Image Credits: unsplash.com

Neutral shades include black, white, grey, olive green, brown, and taupe. Neutral shades never go out of style, so you can keep these pieces in your wardrobe for years. These shades are extremely versatile too, which can result in an effortlessly expensive-looking outfit.

TIP #3: LESS IS MORE

Wearing minimalist outfits with sharp tailoring in neutral shades and paired with timeless accessories will elevate your style. Keep things simple. For instance, you can match a black dress with a gold necklace or bracelet.

TIP #4: WEAR FLATTERING CLOTHES

Elegant people know that focusing on their assets and drawing attention to the body parts they love can help them look more stylish. Clothes that fit you like a glove and flatter your body can help you look classy.

Not everyone has the same body type, so select clothes that flatter your body. For instance, petite women can find a tailor to achieve the best hemlines.

TIP #5: MATCH BAGS WITH SHOES

The importance of a good shoe can never be underestimated. A good pair of shoes can either be durable black high-heeled shoes or a pair of nude flats. Learning to match these shoes with your back does not necessarily mean you have to match the colors. Rather, you need to match the materials used in the shoes and bag.

You can go for a leather bag and pair it with leather mules. You could still match colors as it is your choice. Invest in quality shoes and bags that are long-lasting and timeless.

TIP #6: WEAR MODERATE MAKEUP

Avoid heavy makeup and false eyelashes. These are not bad ideas, but you can elevate your style by keeping things simple and fresh.

Image Credits: pixabay.com

Do not forget about proper grooming too! Wash your hair properly, brush the edges well, and put it together.

TIP #7: KEEP YOUR ACCESSORIES TO A MINIMUM

Those who are trying to stay within a budget will be happy to apply the “less is more” method when accessorizing. Tasteful accessories have the potential to elevate your style from looking basic to fancy. Stick to dainty, sleek accessories such as simple gold chain bracelet and pearl drop necklace.

TIP #8: FIND THE RIGHT FABRICS

Expensive-looking style is complemented by luxurious materials. Some fabrics you can consider include linen, cotton, silk, cashmere, and wool. Stay on budget by finding quality fabrics at end of season sale or shop on pre-loved sites such as Facebook Marketplace and Carousell.

Sources: 1 & 2

Read More...

6 Money-Saving Tips for Singaporean Teens

 

Let us face it! Saving money as a teenager is challenging, especially when you have friends who are constantly buying new clothes or are going on yearly overseas trips. However, it is possible. Here are 6 tips on how teens can save money despite the temptations and less income.

#1: OPEN A SAVINGS ACCOUNT

Opening a savings account with the help of your parents or guardians is a good idea as it will train you to manage your money. It is a surefire way to boost your educational savings and to cover your other expenses. There are multiple junior accounts available in Singapore such as the CIMB Junior Saver Account, OCBC Mighty Savers Kids Account, and UOB Junior Savers Account. These banks offer about 0.05% to 1% interest p.a. and minimal initial deposits.

#2: SEPARATE YOUR NEEDS FROM WANTS

Organize your finances by separating the money for spending and the money for savings. Although you have stashed the money away in your savings account, it might be tempting to touch it when your cash runs out. Stop! Refrain from doing this.

Your savings are for emergencies and essentials, not for straightforward purchases like food and clothes. The smart thing to do is to have a direct deposit account which you can access on demand.

#3: CREATE A REALISTIC BUDGET

Keep track of where your money is going by creating a budget. You can either write everything down or have software that stores all the data. Be diligent when it comes to encoding what you spend in a week or in a month. Most of us tend to spend more cash on the weekends, so you can start encoding during this time.

Once you have an idea of where your money is going, you can set limits and targets next.

#4: TAKE ADVANTAGE OF THE STUDENT DISCOUNTS

Your student ID is more than just a card that enables you to go to school. It is your means of getting discounts such as cheaper public transport or cheaper books. Many businesses and services offer student discounts throughout the year. Do your research to get more information.

#5: ASK YOUR PARENTS FOR HELP

There is no shame in asking your parents for help while you are starting to build your wealth. You can ask your parents to match your monthly savings by contributing to your account. If you put aside S$25 a week for a month, you can ask your parents to contribute S$100 at the month’s end. Do household chores in return for this favor.

Do not be afraid to ask! Once you have shown your parents that you are serious about saving money, they will reach out and offer their support.

#6: CONSIDER GETTING A PART-TIME JOB

For many young Singaporeans, having a part-time job is a rite of passage. Students can be able to find part-time jobs in the administration, hospitality, or retail fields. Investigate to see who is hiring in the area.

If these are outside of your interests, you can use your passion to create your own online shop. Use your extra income to grow your savings even more.

Sources: 1 & 2

 

Read More...

How to Maintain a Great Relationship with Money

Establishing a healthy relationship with money takes effort, but it pays off. You must manage the highs and lows, and everything in between.

#1: PUT IN EFFORT FOR IT TO FLOURISH

Much like any other relationship, you have to put in effort to your finances for it to grow. A positive mindset and the right attitude towards money can help strengthen your relationship. Plant the seeds of appreciation and contentment for what you already have. Perhaps, you are grateful for your recent promotion, or you are thankful for having additional online vouchers. Working towards a positive mindset can go a long way!

#2: SCHEDULE REGULAR CHECK-INS

According to clinical psychologist Joe Lowrance, “financial wellness is a component of overall wellness”. Regular financial check-ins are necessary for you to know which areas you need to improve on. Then, you must create an action plan to reduce your unnecessary expenses.

Image Credits: pixabay.com

#3: PAY ATTENTION TO SMALL THINGS

If you indulge in artisan coffee on a Saturday afternoon, take the time to relish the moment. You could also purchase a small gift for attaining your saving goals or celebrate a small win at work. Acknowledging the little thigs can keep you motivated and improve your relationship with money.

#4: RESPECT EACH OTHER

Respecting your money means taking care of it properly by practicing accountability. Your money is influenced by how you treat it. Give it the respect it deserves, and it will reciprocate in the same way.

#5: PLAN SOMETHING SPECIAL

Money is a tool used to meet your needs and to achieve your financial goals. If your money does not give you pleasure and is only tied down to sacrifices, then you are likely to feel overwhelmed. To relish the rewards of your income, you must plan for it. Use your extra savings to plan something special for yourself. You can also bring along a friend or your loved one.

#6: ADMIT WHEN YOU ARE WRONG

Some people cannot admit when they have made a financial mistake or deny their poor relationship with money. Be honest with yourself. What is your current financial circumstance? Being honest about your financial situation is necessary for you to learn from your mistakes and to attain financial stability. Try to ditch the excuses and look at your relationship with money through clear lenses.

Image Credits: pixabay.com

Sources: 1 & 2

Read More...

5 Ways to Stretch Your Financial Literacy

Financial literacy is a life skill. Similar to other life skills, financial literacy takes time to learn. Starting your journey can be intimidating and daunting for some Singaporeans.

As personal finance is not typically taught in schools, you need to take conscious decisions to improve your own skills. Whether you are an expert or a novice at financial literacy, keeping your knowledge base growing matters!

#1: READ MORE FINANCIAL BOOKS

Retail CEO Sandra Campos believes that financial literacy is a skill that you should never stop acquiring. She encourages people to read trusted publications to stay informed about understanding how to manage your finances better. If you opt to listen to financial podcasts, you may do so.

Financial podcasts can be a wonderful way to absorb financial news while you are fulfilling your other tasks. You can listen to these podcasts as you run errands, travel to work, complete your housework, walk your dog, or exercise in the park.

#2: TEACH YOUR CHILDREN THROUGH PLAY

Learning about money does not have to be a two-hour long lecture. One of the most effective ways to connect with your children is to introduce play-based learning. It provides them with a friendly environment to test new skills and gain confidence with challenging topics. Make learning fun by playing financial literacy games with your kids!

Ignite a family competition by playing money board games or trying out activities that are suitable for your child’s age. You will not only help your child start a healthy relationship with financial education, but also improve your quality time.

#3: EMBODY THE FRUGAL MINDSET

Embrace the frugal mindset to improve your budget. Take your monthly expenses under a microscope and inspect if there are unnecessary costs that you can eliminate. For instance, you may purchase second-hand children’s clothes instead of new ones. Eliminating unnecessary costs can move you closer to your financial goals.

Despite being frugal, there are some expenses that you cannot skip! Prioritize groceries, household supplies, and other non-negotiables. For these expenses, make sure that you are getting the best price.

#4: FOLLOW YOUR WELL-DEVELOPED BUDGET

A well-developed budget can operate itself if you stick to it.

It can help you identify where your money is going. So, start tracking your spending using a simple spreadsheet or mobile budgeting apps. Saving an accumulation of lesser amounts can go a long way.

#5: SEEK PROFESSIONAL HELP

If you need additional assistance from a financial professional, you can research credible local organizations. A financial professional can answer your money questions ranging from day-to-day money issues to more complex long-term situations.

Image Credits: pixabay.com

This professional will begin by assessing your current situation to help you plan for all your financial needs to move forward. Remember that your financial is a lot like your physical health. You need regular exercise and check-ups to sharpen your financial muscles!

BONUS TIP: EDUCATE YOURSELF THROUGH TECHNOLOGY

Expand your financial literacy by educating yourself through virtual methods. You can soak up financial news through podcasts and newsletters or follow your favorite social media channels. There is a wealth of financial podcasts available on Apple and Spotify including The Ramsey Show, Yield Hunters, BT Money Hacks, and Money for the Rest of Us.

What’s more? You can follow Money Digest on Facebook to consume free financial news and latest deals in Singapore.

Sources: 1 & 2

Read More...