How to Live Like a Millionaire on a Small Budget

Do you dream of living a luxurious lifestyle like a millionaire, but feel like your bank account just won’t cut it? The good news is that you can still enjoy the finer things in life without having to break the bank.

By adopting a few straightforward lifestyle changes, you can indulge in luxury without worrying about overspending or debt. Here are some of the smart financial choices that you can begin with.

TRACK YOUR SPENDING

One of the first things you can do to live like a millionaire on a shoestring budget is to learn how to budget effectively. By examining your expenses and prioritizing your spending, you can ensure that your money is going towards things that matter most to you.

Do you value childcare over new gadgets? Do you prioritize training or travel? Assessing your spending habits will result in cutting back on unnecessary expenses and focusing on things that bring you joy.

ADOPT A MINIMALIST LIFESTYLE

When you’re trying to live like a millionaire on a budget, it’s crucial to invest in high-quality items. This doesn’t mean spending a fortune. Instead, you must choose items that are worth the investment and will last a long time.

For instance, you could invest in a classic white button-up shirt that costs S$100 and wear it to different work events, rather than buying a cheap shirt that you’ll only wear twice and dispose of due to its poor quality. While you’re at it, consider building a capsule wardrobe to simplify your life. By cutting out clutter, you can create a more luxurious and clean-living environment.

GO FOR FREE OR LOW-COST EXPERIENCES

Take advantage of free or low-cost experiences. Look for free events in your community by browsing social media groups or marketplaces. You can also join DIY or home improvement projects initiated by your community.

Indulge in some free group activities, such as visiting ArtScience Museum‘s “Future World: Where Art Meets Science” exhibit. Guests can enjoy complimentary entry for up to four children under 12 years old on Fridays, except during Singapore school periods or public holidays.

You can also go to the Singapore Heritage Fest, which highlights the country’s rich history through a series of exhibitions, talks, and performances. Many of the festival’s activities are free. By being resourceful and creative, you can have fun and feel fulfilled without spending a lot of money.

WATCH OUT FOR PROMOTIONS

Expand your collection of high-quality goods and services by seeking out deals and discounts. Many luxury brands offer clearance events or seasonal promotions, so keep an eye out for those.

INVEST IN YOURSELF

Knowledge is an investment that yields the highest returns, as it is something that no one can ever take away from you. Take classes and learn new things to add value to your personal and professional life. When you have more skills and knowledge, you can negotiate better deals and increase salary. Sign-up for some classes today at SkillsFuture Singapore (e.g., Introduction To Personal Investing for S$20).

TRAVEL SMART

True luxury is often found in experiences and not in material possessions. Travelling can be a great way to experience luxury as perceived by diverse cultures. Don’t forget to travel smart! Instead of staying in expensive hotels or resorts, consider renting an apartment or house. This will give you more space and privacy for less money.

When it comes to dining out, eat like the locals or choose restaurants that offer good value for your money. Read online reviews to be guided, especially when you are in a place you have not been before.

GO YACHTING

Have you been on a yacht before? Yachting may seem like an activity reserved only for the wealthy elite, but at The Yacht Club, you can enjoy the experience at an affordable price. With one of the largest fleets of yachts in Singapore, The Yacht Club offers a variety of options to fit your budget. The most economical choice starts at S$635 and provides an elegant, powered single-hull that can accommodate more than 10 passengers in its spacious lounge area. Check out their website for special rates.

TAKE ADVANTAGE OF REWARDS

Credit cards offer a variety of rebates and rewards, allowing you to purchase items on your wishlist for a fraction of the price. However, it’s important to use these cards with discipline and wisdom. You don’t want to end up in debt just to satisfy your lavish taste.

SPLURGE ON LUNCH OR BRUNCH

If you love eating out, opt for lunch instead of dinner. Many restaurants and cafes offer lunchtime promotions or set menus at lower prices than their dinner offerings. The food is just as delicious.

MAKE ARTISINAL COFFEE AT HOME

For a coffee enthusiast, savoring a delicious cup of coffee is a luxurious experience. Fortunately, many grocery stores offer a wide range of high-quality coffee beans to choose from. By purchasing whole beans and grinding them at home, you can save a significant amount of money on your daily latte. Whiff the aroma of freshly brewed coffee in the comfort of your own home while also being budget-friendly.

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Living like a millionaire on a tight budget is all about adopting a mindset of abundance and focusing on the things that truly matter. By simplifying your life, being resourceful, and budgeting effectively, you can create a life of comfort without draining your savings!

Sources: 1 & 2

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Financial Challenges of Wedding Preparation and How to Overcome Them

Weddings are notoriously known for being expensive and stressful.

Be prepared to plan for a year for an event that will happen instantly in a day. The possible options are overwhelming! Not to mention, countless wedding vendors are vying for your attention. You might want to brace yourself, because the average cost of a wedding in Singapore ranges between S$22,200 and S$52,800.

During the process of wedding planning, engaged couples often make financial mistakes that affect their future. Here’s how you can avoid these common financial challenges.

#1: NOT SETTING BOUNDARIES FROM THE GET-GO

Failure to discuss your financial boundaries can affect your other wedding decisions. The decision to unite as a family isn’t merely about spending the rest of your lives with your true love. It is also about the practical areas of building a future. You need to either rent a flat or buy a flat. Do you plan to have a baby in the next five years? Do you want to travel to Europe for your honeymoon?

It is important for couples to discuss the specifics and mutually agree on a financial plan. Know which funds are “ours”, “yours”, and “mine”. Decide which expenses should be paid for by the “ours” bucket (e.g., venue rental) and which part should come out from your “mine” bucket (e.g., wedding gift to your partner).

#2: BEING TRAPPED BY THE CONTRACTS

Let’s face it – weddings are a lucrative business! The contracts you have with the suppliers are binding. So, don’t simply sign on the dotted line without asking questions. Studying the contract will enable you to bargain strategically. For instance, you can remove unnecessary inclusions such as upgraded linens for VIP guests.

Some contracts leave you financially responsible for empty rooms and chairs that you reserved for the event. This added expense can create a hole in your pocket. Be sure to read the contracts thoroughly.

#3: INVITING PEOPLE OUT OF OBLIGATION

It’s easy to get into the mindset of having to invite everyone from your secondary school friends to your second cousin whom you have not seen in a decade, but having a huge guest list may turn out to be a big financial mistake. As uncomfortable a conversation may be, you must decide together to only extend an invite to those people who you really want to be at your wedding.

Set clear rules about your guest list such as “no kids” or “no plus ones”. With fewer people, you will be able to maximize your wedding budget and assign your funds to more key areas including catering and venue rental. Best of all? You will only be celebrating this special occasion with the ones closest to you.

#4: FAILURE TO FACTOR IN THE UNEXPECTED EXPENSES

You have booked and paid for the flowers, venue, photographer, and catering. Everything on your list is accomplished and small details have been polished. However, unexpected expenses can come on the day itself. While paying for an extra person might not break the bank, before you know it, you receive a bill that you did not foresee. Thus, it is important to create some wiggle room and be ready for unexpected expenses.

#5: SPENDING MORE THAN WHAT YOU HAVE

Common wedding expenses that you must prepare for include

a. ROM and solemnisation fees,
b. Venue rental and banquet,
c. Photographer and videographer, as well as
d. Wedding party entertainment.

Many engaged couples splurge on their wedding because of this mindset – you only get married once. Coming from someone who has recently had her civil marriage ceremony, I am now planning to have our Church wedding ceremony. Sometimes, you do not get married once. Moreover, going into debt to wed is never the right foot to start your marriage on.

Image Credits: unsplash.com

Having a realistic wedding budget can help you stay within your limits. Have a firm idea of how much money is available for your wedding. Then, create a wish list of the things that you would like to have. Prioritize your list while taking your current financial situation into consideration. There are no wrong or right priorities, just preferences to complete your special day!

Sources: 1 & 2

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5 Mind Tricks to Help You Stick to Your Budget

When it comes to spending less and saving more, it is tempting to bury our heads in Sentosa’s sand. The way we manage our finances today is entirely different from the way money was managed in the past. It is getting increasingly easier to spend money, and more challenging to save money.

When done right, budgeting can direct a series of clever financial choices to move you closer to the things you want out of life. Take the time to get this right at the start, to give yourself a massive advantage and benefit from the results for years to come.

Start by using simple brain tricks to help you stick to your budget.

#1: TREAT YOUR SAVINGS ACCOUNT LIKE A BILL

Consider your savings account as another monthly bill. Start by allotting money towards your fixed expenses, followed by assigning a certain amount towards your future. You can use this fund either for your retirement or your future goals, but do not go out and blow it on things you do not need.

Saving for your future is just as important as paying your other bills. When you treat it that way, you will develop a wealth-building mindset.

#2: MAKE SMALL BARRIERS TO CURB YOUR SPENDING

The convenience of online banking and banking apps cannot be denied. Your banking app can show you the movements of your funds in real time. Moreover, you have the ability to input your debit or credit cards directly onto your phone to experience fast payment processes. When there is no barrier between you and your money, it becomes easier for you to spend more.

Place a barrier between you and your emotional shopping tendencies. Whether you are keen on putting a long passcode on your banking app or using two-factor authentication for your online banking, you will be less tempted to spend when barriers exist.

#3: GAIN CONTROL OF SMALL, FREQUENT PURCHASES

Your small, frequent purchases add up. Every time you buy a coffee or eat out, your ability to save decreases. It might not seem too much at the moment, but it adds up to a significant amount. Track your expenses by writing down every small purchase per month. This will increase your awareness and help motivate you to cut down on your spending.

You might be shocked to see the number at first. However, you will be able to recognize why you are struggling to save.

#4: WAIT 15 MINUTES BEFORE MAKING A PURCHASE

As you are walking down the aisle of the nearest grocery store, you find it difficult to resist the promotions from left to right. Control your spending by giving yourself 15 minutes to ponder about your potential purchase. Giving yourself 15 minutes will allow you to resist your impulsive purchases.

If you can, it is even better to wait for a full day or a week before making purchases. Remember that having a waiting period is the best way to train your brain.

#5: GO OUTSIDE OF YOUR COMFORT ZONE

We are creatures of habit. This is why people resist changing their insurance provider, telecommunications provider, and so on. There is a desire to keep everything the same and anything different can be perceived as a loss.

Image Credits: unsplash.com

However, staying in our comfort zone means that we are paying more for services than we need to. Pushing yourself out of it will allow you to shop for the best deals. Start with reassessing your mobile plan, before moving to your utilities, insurance, and other providers. Revisiting these plans on a yearly basis will ensure that you are maximizing your hard-earned money.

Sources: 1 & 2

 

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Avoid Wasting Your Money on These CNY Items

In the Singapore calendar, Chinese New Year (CNY) is one of the most awaited events. The Lion City is hopping with excitement in anticipation of the festivities ahead. To save money when celebrating the first day of CNY on January 22, please remember not to waste your money on the following items.

#1: PURCHASING EXPENSIVE DECORATIONS

Making your own decorations should not only be reserved for preschoolers. If your home looks attractive to the hungry ghost, start brightening up the place with a few vibrant red decorations. These CNY decorations do not need to be brand new. You can recycle old red packets and revamp your last year’s CNY decorations. To recycle your old red packets, you can follow this video tutorial:

#2: BOOKING HOTELS LATE

Long queues will flock Changi Airport the evening before CNY. As Singaporeans are desperate to make the most of the long weekend, many people have booked their air tickets in advance. If you have not already booked your air ticket or your hotel stay, you are sure to pay ridiculous prices. Moreover, some tickets or rooms may be sold out. Save cash by opting for a three-star hotel or a local day tour instead.

#3: STOCKING UP ON SEASONAL PLANTS

Whether you are looking forward to peonies or kumquat plants, stocking up on seasonal plants can add up. These seasonal plants carry higher price tags as the CNY approaches. Channel NewsAsia reported that the price hike is due to bad weather conditions, transportation constraints, and increased labor costs.

#4: BUYING OVERPRICED GOODIES

Your guests look forward to eating bak kwa, cornflake cookies, and pineapple tarts during the party. However, these goodies are more expensive as you get closer to January 22, 2023. Since CNY goodies are available throughout the year, it is ideal to buy them in advance.

Image Credits: unsplash.com

#5: THROWING DINNER PARTIES

Family is at the heart of Chinese culture, which is never more apparent than with the CNY reunion dinner. The best-case scenario is to have a relative who can accommodate the entire clan in their home. Otherwise, you can try your best to book a few tables at a Chinese restaurant nearby. Expect insanely inflated prices at restaurants during this time.

If these dinner parties are a yearly affair, you would save more money by booking at least 12 months in advance.

#6: WEARING NEW RED CLOTHES

With change being a prominent theme during Chinese New Year, it is believed that wearing brand new clothes on the first day of the new year is symbolic of making a new start. Whether you opt for traditional clothing like a qipao or tangzhuang, or a contemporary smart casual outfit, the most important thing to consider is color. Red is the color of choice for many during CNY.

Wait for the sales to hit to purchase your new red clothes to save more money. Alternatively, you may re-style your old CNY clothes or wear them in a different way. You can add accessories or pair your red blouse with a patterned skirt to create a flowing dress.

Sources: 1 & 2

 

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How to Be a Good Money Influence on Your Friends

Friendships can benefit you in encouraging you to live healthier, elevating your quality of life, and lifting your self-esteem. Your friends should help you to be the best person you can be. You should do the same. Here are a few tips on becoming a good financial influence on your friends.

#1: SHARE YOUR EXPERIENCES WITH OTHERS

In 2013, researchers found that solitary experiences brought just as little happiness as the material things. Social experiences, on the other hand, were more valuable to the participants. Compared to possessions, we worry less about what others will think of our experiences, and they do not generate the same kind of regret. Consider sharing your experiences with your close friends and family members.

#2: SPEND MONEY ON THE RIGHT PEOPLE

A 2011 study showed that participants who recalled spending $20 on someone close to them reported feeling more positive emotion than those who recalled spending $20 on an acquaintance. Spending money on the right people is important for your financial health.

Allocate your dollars so your friends or family members can benefit without you feeling detached or drained.

#3: PAY YOUR BILLS ON TIME

Serve as a good example by paying your bills on time every month. Paying your bills on time helps you avoid late fees and prioritizes essential spending. On-time payment history can also lift your credit score and improve your interest rates.

#4: SAVE MONEY TO AFFORD BIG PURCHASES

Can you imagine constantly asking your friends for money? Certain kinds of loans and debts can drown you. Big purchases such as purchasing appliances and furniture can best be completed by cash.

When you buy in cash, you avoid generating interest and creating a debt that requires years to pay back. In the meantime, you can save money in your bank account and watch the power of compound interest.

#5: SET SMART GOALS

A person with financial goals can provide a good direction for himself and those around him. Setting goals helps you lay out your “why”. It also gives you something to work towards for.

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As you set your financial goals, keep in mind that you want them to be SMART. Break down your big goals into small, easily digestible chunks.

Sources: 1 & 2

 

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