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.

Image Credits: unsplash.com

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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6 Types of Friends That Are Bad for Your Finances

It’s human nature to compare ourselves to those around us. In theory, it seems reasonable enough, but in reality, it can be a slippery slope, especially when we’re surrounded by friends who unknowingly (or knowingly) harm our finances.

Maybe your friends are getting married and applying for their BTOs, while you’re still single, navigating the transition into a new career. You might start wondering what the “normal” timeline for life is. But here’s the catch: comparisons only work if you’re using yourself as the benchmark.

You see, even if you were raised to mind your own financial business, that doesn’t mean all your friends or acquaintances follow the same rules. This is why self-awareness is crucial. By identifying which friends might be messing with your financial stability, you can better neutralize their impact on your wallet.

#1: THE ENABLER

The Enabler is that friend who points out how hard you’ve been working and tells you, “You deserve nice things!” and even if those nice things are way beyond your means. Their intentions are sweet and they just want you to feel special because they care about you. In many cases, the Enabler is someone close to you. Sometimes, though, it could even be you enabling others.

How to handle it? Carry only the amount of money you’re willing to spend when you’re with this friend. Once the cash is gone, you won’t be tempted to go beyond your budget. Furthermore, avoid activities like window shopping together as it’s a trap for overspending.

#2: THE BORROWER

We’ve all had that friend who shows up only when they need financial help. They’ll hype up your latest travel pics or drop comments on your IG stories, only to later DM you with a request for money, promising to pay you back at the end of the month. Spoiler alert! It’s rarely easy to get your money back from a Borrower.

To protect yourself, be clear about the purpose of the loan and have a structure in place, especially for larger amounts. A written agreement with terms like interest, repayment deadlines, and late fees can go a long way toward ensuring you get repaid.

#3: THE CONMAN

This friend is always up to date with the latest “get-rich-quick” schemes or “once-in-a-lifetime” investment opportunities, which are complete with vague business plans and shady multi-level marketing structures. This friend will try to convince you that this scheme is the golden ticket.

Your best move? Be direct! Tell them upfront that you’re not interested and explain that your funds are tied up in more important matters such as childcare, student loans, or HDB improvements. The key is setting firm boundaries and not getting sucked into their scheme.

#4: THE DRAMATIC

Drama seems to follow this friend wherever they go. Their life is always full of chaos, including financial disasters they refuse to address. While your instinct may be to help, friends like these often can’t be helped until they decide to help themselves. Pouring time, effort, and money into them may only result in disappointment.

Sometimes, the best way to help is by stepping back and allowing them to face their financial problems on their own terms.

#5: THE BULLY

A financial bully is that friend who makes you feel small for your financial choices. I had a friend once who would say things like, “Girl, you pick the place, since you’re the poorest among us.” It took me years, but eventually, I cut her out of my life.

Financial bullies thrive on feeling superior, but their teasing often stems from their own insecurities. They might mock your budgeting habits, yet they could be the ones struggling to pay their bills. If you find yourself in this situation, speak up! Remind your friends that sticking to a budget is part of your plan for financial stability.

#6: THE OPTIMIST

Much like the Enabler, the Optimist has a skewed view of reality when it comes to finances. They live by the motto, “You only live once! C’mon, YOLO!” which can lead to risky behaviors like spending your rent money or draining your emergency fund on a lavish vacation.

How do you manage this? Keep the conversation focused on your financial goals. By sharing concrete, achievable targets, you not only keep yourself grounded but might also inspire your optimistic friend to take a look at their own financial habits.

Image Credits: unsplash.com

By being mindful of these types of friends and their influence, you can make better choices for your financial well-being, without sacrificing your relationships.

Sources: 1 & 2

 

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Just Got Married! Now What?

Marriage is about teamwork and compromise. Whether you have been married for two weeks or two decades, it is essential to be able to work together with your partner. The reality is that working together can be challenging, especially when it comes to your finances. In fact, the majority of divorced adults cited money as the reason for their separation.

You can tackle money as a team with honesty, communication, and dedication to a shared plan!

#1: CREATE A HOUSEHOLD BUDGET

A budget should tell you how much money you anticipate having and where it will go. Your income and expenses will change once you are married. It is important that you create a new combined household budget and revisit your Indvidual budgets to adjust to the marital shift.

#2: SET SHARED PRIORITIES

What do you value the most as individuals? What do you value the most as partners? Personal management begins with understanding your priorities and what you want. As you come together, you will need to merge those priorities and ideas to filter what you both believe in. These priorities will help influence your most crucial money decisions.

#3: SIT DOWN TO DISCUSS

It is unpleasant to talk about money during inappropriate times or when your spouse is not ready to discuss serious matters. Do not discuss money at random times! Pick a specific date to talk deeply about money. This mutual time for a meeting will enable you to stay on the same page. Feel free to raise your concerns to produce a shared solution.

#4: EMBRACE YOUR DIFFERENCES

Everyone has a different relationship with money. It is not a requirement that you understand how your spouse feels the way they do, but it is important to recognize and respect those feelings. Accept that differences are inevitable.

#5: ESTABLISH A JOINT EMERGENCY FUND

Once you and your partner are living together, you can both work on setting aside funds for any potential emergencies such as unemployment and sudden home repair. A high-yield savings account can be the perfect place to build this joint emergency fund. Set aside cash savings that is equal to about six months’ worth of your joint fixed expenses.

#6: HAVE A SHARED CREDIT CARD

Maximize the rewards you can earn on all your joint purchases by opening a joint credit card or having your spouse become an authorized user on your credit card. If you sign up for a rewards credit card, you can use your newly established joint checking account to pay off that credit card every month. This will increase your bonuses and rewards along the way.

Image Credits: pixabay.com

#7: TRACK YOUR SPENDING

Another way to avoid fights about money is to track your spending. There are no surprises when you track your spending together. There is many personal finance management software available for free such as the Expensify, Spendee, Money Lover, or Mint app. You can also do the old school method by creating a ledger. Knowing where your money is going is just the first step! Working together is all about transparency.

Sources: 1 & 2

 

 

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Adequately Managing Your Business’ Finances In The Digital Age

Everyone knows that the professional landscape is always evolving and shifting, adapting and relining with the way that the world around it is functioning and thriving at any given time. We have seen an incredible amount of attention to detail and overall emphasis that is focused primarily not just on what works for the industries at any given time but also what is going to be most effective for the moving forward. There is a lot to be said about the fact that while there is significant interest and investment in powering for the current era in this particular field, there are always ways to enhance and improve. And now that we are moving into a modern age that is all about embracing modernisation like never before, this is truer than ever.

How the digital age impacts businesses

In the digital age, there is genuinely so much to be said about the fact that it has truly impacted and entirely revolutionised every aspect of life as we know it every corresponding industry in their own ways. For businesses of all natures, shapes, and sizes around the globe, there is quite a lot to be said about understanding not only how businesses are able to navigate their way through the beginning stages but also how they are able to do so on an active and ongoing basis moving forward from here on out. What has always worked so well for businesses is perhaps no longer as relevant and so the digital age is impacting businesses of all natures, shapes, and sizes by inspiring them to embrace modernisation and work towards finding better ways to move forward, onward, and upward.

Adequately managing your business’ finances in the digital age

Each and every aspect of how business functions and thrives today has been and continues to be impacted. This of course includes the business’ finances. Adequately managing your business’ finances is all about understanding that while there have been significantly successful innovations in the past, the best way to embrace they are moving forward is to figure out how they can be impactful in the future. Business finances today can be made more convenient and efficient by being streamlined online. For your business expenses, you can pay bill online for faster transactions and easy tracking of payments.As a result, adequately managing business finances in the digital era is all about embracing the digital landscape and utilising it to your distinct advantage in a way that allows you to come and pursue the longevity and success of your company.

Why this is always going to be of the utmost important

Without a doubt, the finances of a business is one of the most important meeting pieces. The corporate account of a business ultimately says a lot about how the business operates and functions on a daily basis as well as how it is able to withstand change overtime. And this is always going to be incredibly important to understand. Regardless of how the nature of business is going to evolve over the years, the importance of being able to manage professional finances for the business and surrounding the business is always going to have a significant role to play.

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