Simple Money Habits to Follow
Many people let their impulses guide their finances. This can often land them in financial trouble down the line if they are not careful with their money. They may face difficulty paying off their debt, have no emergency funds to rely on during emergencies, or they have to make massive compromises to just get by. You can be smarter than that. You can be mindful of your finances by sticking to some incredible money habits. Doing so will prepare you for the future, be it for your retirement, your dream motorcycle, or even a financial crisis. What are these simple money habits? These are.
Track Your Finances
One of the principles of personal finance you should abide by is tracking your finances. Every other money habit is secondary to this. Tracking your money, including your income, taxes, savings, investments, debt, and other expenses, will give you a clear idea of your financial situation.
Tracking your money is not that difficult, thanks to computers and mobile phones. You just have to download an app or use a spreadsheet to track your expenses. Most of them come with automated processes that project data in graphs and charts on an annual basis, helping you make financial decisions accordingly.
Reign in Impulse Buys
Impulse buying can be fun, it can give you a particular rush, like eating your favorite chocolate cake. But, it may not be good for your finances, just like how the cake is not good for your health. If you reign in your impulsive purchases, you can save a lot of money.
You need to distinguish between needs and wants to do this properly. You can buy what you need right away, but when it comes to wants, you should think more over it. An easy way to control your impulses is to make a list of things you want and then wait for a couple of weeks. If you still want the thing by the end of it, you should definitely go and get it.
Use Your Credit Card Smartly
Credit cards can be a brilliant financial tool, but many people don’t know how to properly use them. That can spell disaster for your budget. You need to use your credit card smartly. There are three easy ways to do that:
- Swipe your card only if you have the same amount of money ready in your bank account.
- Pay the credit card bills on time and avoid paying minimum bills. Pay the full amount.
- Enjoy the benefits and rewards of credit cards and not the credit itself.
Follow these three tips, and you will see your credit card score going up in no time. This way, you are showing the credit agencies of Singapore that you are a responsible spender who buys what they can afford while enjoying the free rewards and benefits.
Buy Used Vehicles
Vehicles, be it a car or a motorcycle, are expensive in Singapore. You can spend years saving up for your next vehicle, but as you drive it off the showroom floor, its price is slashed significantly. Sometimes, you lose as much as 40% of the car value in the first week itself.
Instead, look for the used ones. The well-maintained cars or motorcycles can cost you half of the value of a new one and still be in excellent condition to drive. The money that you save this way can be used for maintenance, put in a savings account, or going for a road trip!
Focus on Quality
One of the things people do while improving their personal finance is buying cheaper alternatives. While this can work for most things, it may end up costing you more in some cases. So, invest in good quality products that will last you much longer.
For example, a cheap kitchen knife set that costs you S$10 will only last a couple of months before getting blunt or rusted. On the other hand, a quality knife set that costs S$100 will last much longer without getting spoilt. The same goes for clothes.
Sure, you may have to pay a higher price up front, but you will save more money in the long term as you won’t have to replace them continually.
Cut the Cable
Cable TV has movies and shows filled with advertisements, and they lack real high definition quality unless you pay a premium for it. On the other hand, you can get the same number of shows and movies without advertisements, in high definition—all for a much cheaper cost on the internet.
For most, Netflix or Amazon Prime Video, and Youtube are enough. Netflix for shows and movies, and Youtube for news and other updates. Cutting cable can really save you hundreds of dollars every month!
Don’t Order Alcohol at Restaurants
The most common financial tip on the internet is avoiding outside food. This can be impractical for many people who work long hours or love trying out new delicacies. So, instead of cutting down entirely on outside food, you should cut down on alcohol. Alcohol in restaurants costs a lot more than liquor stores.
Saving your money is essential, regardless of how much you earn. Whether you are a minimum wage worker or a millionaire, you need to save. And saving can often be hard. You may end up spending too much, or you may feel hesitant about transferring your money to the savings account.
The solution is to automate your savings. Many services let you do that. When you opt for those services, a specific amount of money is automatically transferred to your savings account every month after you receive your paycheck.
A good idea when it comes to savings is to save at least 10-15% of your paycheck every month.
Habits can be hard to form, especially when it comes to money. No doubt, spending money is just so much fun! Yet, you have to be careful about it. Developing these money habits can really benefit you in the long run. Commit to them, and before you know it, you will have enough money in your bank account to do a lot more than you do right now!
Emergency Loan in Bugis Cube
Did not save any money for raining day? Currently facing an emergency and in need of an urgent loan? You can get a personal loan in Bugis, which is central in Singapore. Easy access for everyone to visit our office. Looking for a licensed money lender in Bugis? Look no further, Singa Credit is located in Bugis Cube level 2-01. Open from Monday to Sunday, we will definitely be able to assist you with your needs!
Licensed Moneylender in Bugis– Singa Credit Pte Ltd
Established in 1992 and previously known as Yong Seng Credit,
Singa Credit Pte Ltd is Licensed Moneylender in Bugis regularly updated with the latest regulations to be in line with the requirements set out by Registry of Moneylenders.
Please feel free to call 66946166 for more info on our lowest interest rate in Singapore or walk in our office 470 North Bridge Road #02-01 Bugis Cube Singapore 188735.