These are very few but highly-effective habits that Singaporeans who really want to start saving money can adopt.
Saving money is very important not just to fulfill your dreams but to get you through any unforeseen financial emergencies in the future. Though everyone knows the importance of saving, the daily pressures and stress around us make it hard to cope up with it. But not putting time and efforts in creating an effective savings plan can end you up in bigger troubles in the future.
A good financial plan will help you live a stress-free life and prevent any hassles or financial burdens on you in the long run. You can even manage the loans you bought from a money lender. The below 3 easy money saving habits can make your life easier and financially independent.
Set Up A Dedicated Savings Account:
Most Singaporeans have tried saving money but somehow it has never worked to their expectations. The key to savings begins with taking part of your earnings and keep it aside for saving. And a very common approach towards it is spending lesser than the previous month. This is undoubtedly the best idea, however, when you have some extra cash in your account by end of this month, you somehow end up spending more the next month. This is not something that we intend to do but it just happens out of habit.
Though our intention is not to spend that cash we set aside as savings, our mental self will have a different plan going on. So we become impulsive to spend that for something we never planned before and this way the idea of savings never succeeds. So to make it work for sure, you got to have another account dedicated to savings.
Best way to save is each month is to take some money out of your primary account and put it in your savings account. Once you do that, just forget that account even exists. The best thing to do here is to automatically set up a transfer of a portion of your money to your savings account. So even if you forget to do that manually, the automated setup will take care of it. All banks in Singapore give the facility of auto-transfer to your desired account.
Another thing you must remember is to have your secondary or savings account in a different bank than your salary account. This is because banks give you a single access for your multiple accounts and you can instantly transfer from one account to the other. And knowing that you have extra cash will give you the confidence of spending more. But if it is a different account in a different bank, you can train your mind to think what you have is what is left in your main account.
Set Goals for Savings:
Nothing in this world works without a purpose and something very important like savings is not an exception too. Without a goal, saving money may seem very unnecessary and useless. That said, it is important that we set up financial goals that we can achieve through savings.
It is good to start with what you need in your life the most and these obviously materialistic. Buying a home, a new car, planning a vacation, starting a new business, or even something as simple as buying your next phone. Every little or big thing can be a financial goal and such goals help you satisfied your life’s needs and luxuries.
If you have everything you ever wanted, you might not find the need to save anymore. But that is not actually the truth as there is always something in this world that you are yet to experience. And if you still feel you have everything, why not just start saving for your loved ones who are in need. You can always contribute part of your earnings in helping someone out from their tough times. Or you can just save for the sake of charity that can really make you proud about yourself and you can earn some respect in the society.
One thing you must understand about life is it is never certain. You never know what the future has for you in the store. Your present situation might be financially strong but you can never be sure you won’t have troubles in future. And savings is a way to secure your future so you do not have to compromise on anything in case those tough times ever strike in your life.
We all have bills to pay and it can be really confusing when there are multiple of them to handle. So it is important that you stay organized with all your monthly bills. Consolidate your utility bills, internet bill, credit card payments, repayment of loan you bought from a money lender and every other bill you get at your doorstep.
Consolidation of bills gives you a clear picture of the total money you owe each month. So you can set that amount aside towards the payments. This is very important because certain services like credit cards attract penalties and late payment fees if you miss paying before their due dates.
Another challenge with bill payments is that the billing cycle of each service provider varies. And each of them provides a certain due date before which you are expected to pay. So it is important that you set up a payment schedule for each of them and add reminders to pay. Another simpler way is to set up auto payment for all these bills. This is the best solution if you are the kind of a person who forgets to pay. Automated payment prevents you from crossing due dates and you can avoid paying penalties as well.
If you have multiple credit cards or loans from multiple money lenders, it is best that you convert them into a single repayment mode. There are money lenders in Singapore who give you the option of clubbing loans that you got from other money lenders such as Easy Credit Singapore – https://easycredit.com.sg. So you can go for such loan to repay everything else and keep only this one active for one single repayment each month. This will avoid confusions and makes it easy to manage your payments.