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How And Why You Should Save For Retirement Before Your Mid-30s

When you are young, in your 20s or 30s, retirement feels like a looooong way ahead.

Typically in your 20s, the only person you have to spend for is yourself. In your 30s, you will have new financial priorities such as the wedding, child’s schooling, house loans, etc.

If you consider all the aspects of your finances and fast-paced life today however, you will realize that it is the best time to start saving for retirement before you hit 35. Even the strategies to save for retirement are in-lined with the ideal to start saving while you are young.

Here are the 4 strategies to save for your retirement before your mid-30s…

1. PAY OFF YOUR DEBTS

It makes sense to pay off your debts or at least your high-interest debts before you save for your retirement. Since not all debts are equal, pay off your high-interest debts first followed by the lower ones.

2. SET UP A BUDGET

Systematically allocate your income onto different categories and stick to that budget. Do not spend beyond what your budget is for that month. This allows you to save regularly rather than arbitrarily.

3. SEEK FOR AN EMPLOYER THAT SUPPORTS YOUR GOALS

Image Credits: American Advisors Group via Flickr

As much as possible, look for an employer that supports your long-term goals. If your employer offers Retirement or Pension Plan then embrace this company benefit.

4. TRACK YOUR RETIREMENT SAVINGS

During your…

a. 20s

It is best to start saving at least 5% of your income or sign up for your employer’s Retirement Plan. Avoid debt as much as possible and get educated about your finances.

b. 30s

Invest your money and check whether it is in lined with your goals. Increase your contribution to your Retirement Savings while preparing for your child’s school fees.

c. 40s

Make thought-through decisions about your expenses and cut down the unnecessary. This is when you hit your savings to the maximum. By this time you should have at least S$80, 000 to your Retirement Savings.

d. 50s

During your 50s, you must prepare for the unexpected. Seek the financial experts’ help if you must. Then, plan your exit with glee because you are well prepared for it.

Note: This is just an ideal time frame for your Retirement Savings. Contemplate and reconsider the realistic measures that are suited for you.

The Secret Habits of Financial Savvy People You Must Adopt

Some people struggle to make ends meet while others succeed in their finances. Have you ever wondered why? The answer may be a combination of different factors that play a significant role and one of them is repeated behavior. An individual’s repeated behaviors or habits are learned from young and affects the person’s decisions in the long run.

So, understanding the value of money and being taught at an early age to save your allowance, watch your spending, and note down your expenses can really boost your finances throughout your life. As the saying goes, old habits are hard to break. Without further ado, here are the Secret Habits of Financial Savvy People That You Must Adopt…

1. WATCH YOUR SPENDING

The first step is to be aware of your spending patterns and exactly how much you are spending per month and per annum. This will help you decide how much you shall save and help you to highlight the unnecessary expenses.

Recording all your expenses, no matter how big or small they may be, can help you plan your budget wisely. Find the perfect (and Free) money management app for you here.

Lastly, stop buying useless stuff that you do not need. Rethink if buying overpriced coffee rather than making your own coffee at work saves you more. Instead of buying lunch, pack your own lunch for at least 2 months. It may seem simple, but these unnecessary expenses add up.

2. SET SMART FINANCIAL GOALS

Develop a habit of financial goal setting to know where you are going and to plan how you can get there. Write down your financial goals with a witness (e.g., spouse or a close friend) and contemplate the monetary milestone you would like to accomplish in the next 2 to 5 years. Track down your monthly progress.

This habit is practiced in businesses that have quota system or in fundraising events, but it surely works for personal finances too!

3. ACCOUNTABILITY AND INDULGENCE

In most cases you must you shall practice the habit of being accountable and owning the responsibility in your spending. Be accountable of your spending by managing it and by following your financial goals. It is an important habit if you want to maintain consistency and progress.

Image Credits: TaxCredits.net via Flickr

In order for a habit or a behavior to be repeated, it must be rewarding. Set aside at least 3-5% of your income to a category called “incentive or shopping money”. I personally do this through the envelope budgeting system (learn about it here). Giving yourself a well-deserved treat after the whole month’s work will surely keep you going.

5 Sweet Valentine’s Day Gift Ideas Under S$50

Valentine’s day is just around the corner. While seeking for the perfect gift, keep in mind that you must also be financial-savvy. You may be tempted to go over your budget since you want to make your lover feel special. But, your gifts need not to be expensive to make your loved ones smile! Here are 5 Sweet Valentine’s Day Gift Ideas Under S$50.

1. FOR THE FORGETFUL LOVER

“I LOVE US ROUGH SIGN” by Monoyono, S$24.90.

Image Credits: monoyono.com

To remind your partner of how much you love him or her, hang this rough sign saying: “I LOVE US”. This rough wood sign is available in Black color with cream wiring. How sweet is it to declare your love with this simple statement?

2. FOR YOUR COOL SWEETIE

“ANYONE CAN BE COOL TOTE” by Monoyono, S$26.90.

Image Credits: monoyono.com

Wouldn’t it be nice to give your sweetie a bag that speaks your mind? This Black tote bag exclaims: ”Anyone can be cool, but awesome takes practice”. This 100% canvas tote bag that measures 14 x 14 inches is not only perfect for the beach but also for every day use.

3. FOR YOUR ONE-OF-A-KIND PARTNER

“PERSONALIZED NAME NECKLACE” by MyLittleBow, S$42.

Image Credits: mylittlebow.com

Nothing beats a custom-made gift such as a Personalized Name or Word Necklace from MyLittleBow shop. You may use his or her nickname, your secret code or your term of endearment. It will make your girlfriend, boyfriend or best friend feel that you have really thought of them. Orders take about 3 weeks to be ready, so be sure to place your order early!

4. FOR YOUR FOODIE BUDDY

Image Credits: saveur.sg

They say that a quickest way to a man’s heart is through his stomach. If you desire to impress your loved one without breaking the bank then check out the 3 Delicious Valentine’s Day Dining Places in Singapore That Are Under S$50. Tickle your taste buds with cuisines from France, Singapore, and Mexico.

5. FOR THE ADRENALINE JUNKIE

“NORTH FACE WALL CLIMBING” in Sentosa, S$19

Image Credits: sentosa.com.sg

Want to take on an adventure that is both physically and mentally rewarding for you and your partner? Then try the North Face Wall Climbing in Sentosa. Worry not about falling because the maximum weight the harness can hold is 120 kg. To keep your safety into an optimal level, you are encouraged to cover your shoulders, waist and thighs to minimize any discomfort from the harness. Covered shoes are also required.

How A Couple Paid S$36K Worth of Debt In Just 6 Months

A couple from America has consciously decided to look into their expenses and pay off their US$27, 000 (S$36, 474) worth of debt in just 6 months.

Jackie or better known in social media as The Paleo Mama and her husband sat down to discuss their finances since they were supposed to buy a house. If they are going to pursue in buying the house, they will get themselves wrapped up even more in debt.

They found out that they had US$50, 000 (S$67, 546) worth of debt due to accumulated education/student loan and the worth of their new car. They did not realize that they were supposed to pay student loan quickly as its interest and value pile up in time. So, they were determined to turn things around.

Here are the 6 things they did to cut down their expenses and earn more income:

1. MONEY MANAGEMENT

First, it is important to track where your money is going through the last month’s bank statements and receipts. The couple noticed that they are spending too much on groceries and eating out.

Image Credits: Jason Rogers via Flickr

With these things in mind, they devised a plan to categorize each expense and allocate specific amount of money on to it.

2. CUT DOWN MOBILE PHONE PLANS

They switched to prepaid phones and got rid of their iPhones. This brought them from US$160 cost of mobile phone plan to US$60 cost of prepaid phone per month.

3. CUT DOWN THE CABLE TV AND ELECTRICITY

They started using Netfilx and Hulu to stream shows (the first month is Free) rather than subscribing to cable TV. Also, they managed their electricity by turning off the lights and controlling the temperature of the air conditioner.

4. SELLING AND USING ESSENTIAL OILS

In order to earn more money on the side, Jackie learned how to make essential oils and sell them online. They also stopped buying over-the-counter medication and cleaning products and started using essential oils instead.

5. SELL THEIR STUFF

They sold their old car (now they have one family car), furniture, clothes, toys, and so on. Furthermore, they only buy used clothes on Goodwill or the local thrift stores. This helped them earn a lot of money.

6. BE HONEST ABOUT THE SITUATION

They called various companies to tell them that they can’t afford the various plans anymore. The customer services helped them to reduce the payments by more than 75%.

As you can see, Jackie and her husband were able to pay off over half of their debt by budgeting wisely and selling their stuff. Fortunately, you can also use these strategies yourself!

4 Saving Tips You Must Know Before Buying Your Dream Car

Aside from your wedding or your house, a car is one of the biggest investments you will make in your entire life. You do not want to pay more that what the car is worth or get stuck in paying your car loan. This is why it is paramount that you do it right.

1. TIME IS ESSENTIAL

Due to working hours, circumstance, and quota system, the best time to shop for a car is on the last weekdays of the month.

Most car shoppers visit the store during weekends where salespeople are usually busy. To ensure undivided attention, purchase a car early in the week. It is best to purchase later within the day, as salespeople are anxious to get home so they will spend less time negotiating. Lastly, best deals are at the end of the month especially if the dealers are just a few sales away from reaching their quota to meet their incentives.

2. BUY THE OLDER MODELS

Instead of buying a new model of car and losing a great deal of money, purchase a car that is at least 1 to 2 years older. Some may even take second-hand or used cars into consideration.

3. RESEARCH TO BE ENLIGHTENED

Determine how much you want to spend and whether you want to buy a brand new or secondhand car. This will give you a view of how long you have to save to replace your current car (if applicable). Research on the real value of your car options to see if you are getting a good deal.

4. RESIST THE UNNECESSARY

Dealers may make you pay more that you have intended so be firm and him or her that you mean business. Since they work on commission, they may offer you warranty, road service packages, and so on. If it is not needed, say no and stick to it.

Image Credits: JOHN LLOYD via Flickr

Don’t allow yourself to feel uncomfortable and pressured into anything you are not interested in. If you go with a certain number in your head, stick to it. Now is not the time to stray from your budget.

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