Managing money can be very challenging. It requires ample patience and efficiency to balance everything, improve your liquidity and save for your future. There are a lot of people in Singapore who agree that if you would follow these tips, you would be able to manage your money more effectively.
- Always weigh your wants vs. your needs. Don’t be impulsive in buying things or investing on properties. You should always assess yourself whenever you make a purchase or want to venture into a business. Check with yourself whether these are things that you just want at the moment or if it is a need that is really important and can be used over a long period of time. It may be hard at first but controlling oneself is the key in effective financial management.
- Start and follow a budget. Following a budget is difficult but starting it is much more perplexing. To make your financial management more effective, it is paramount that you start fixing your monthly budget, list down all the necessary and unnecessary expenses and bills, and try to make it a point that you get to limit yourself with what you have set as only for payments and for saving.
- Think of an alternative additional income. Let’s face it. For most regular rank and file employees, and even for some who hold managerial positions, our monthly income is often not enough to sustain the lifestyles that we want. If single people are already having a hard time budgeting their money, what more for those people with families with two or three children? This is why it is important to think of an alternative income or find ways on how to improve and add our monthly revenue as an individual and as a family. There are thousands of possibilities. You just have to find something that you are interested in venturing in.
- Think of your long-term financial goals. It is wise to think of your short-term financial needs as it is what you need to face at the moment. But it is also significant that you plan ahead and think of your long-term financial goals. Ask yourself, what do you really want to attain in the next three, five or ten years? Would you like to have your own home? Start your own business? Have your own car? It’s always good to have something to look forward to.
- Save. Saving is something that we need to practice as a hobby. It is not all the time that money would flow in abundance so give it a priority to save as much as 20 to 30 percent of your monthly income. You’ll never know when rainy days are coming so might as well be prepared. Plus, you might want to save up for something that you would want to buy or invest in the near future, your savings can come in handy.
- Settle your debts and make sure you don’t drown on any debt. Debts are seriously exhausting to manage so before you borrow money, you need to check if you have the cash to pay it as soon as possible. Don’t let yourself be drowned in debts because you will only suffer financially if you allow it.
- Manage your credit cards effectively. Credit cards can be helpful but you should manage if effectively to avoid paying too much for things that don’t matter.
- Educate yourself or get some financial help. Try to study and read financial articles and books to educate yourself. If you find it difficult to grasp, ask for help to those who have knowledge about it.