Budgeting Hacks in Singapore | Get the Right Bank Accounts & Save More

Bank Accounts | Budgeting | Savings Accounts | Singapore
by Priyadarshini 24 January 2023

Every day, you go to work and make a decent living. However, you start having panic attacks when waiting in line at the ATM. And you’re pretty sure your net worth is negative. That’s a solid sign you’re in bad financial shape and should start budgeting right away. Read this blog, as we tell you four budgeting hacks in Singapore.

Need a Financial Planner?

You may certainly engage an expert to assist you in getting your act together. But, because you’re broke, you’re worried that after paying the financial planner, you won’t have any money left over to manage. The good news is that budgeting on your own and successfully managing your money and expenses is possible. Yes, without a financial advisor, breathing down your neck is very achievable. Sure, it takes some effort at first, but after a few months, you’ll be working on autopilot. That means you’ll be improving your finances without having to drown in a sea of bank account statements every time you pull out your wallet.

Four Budgeting Hacks in Singapore:

Quantifiable Financial Objectives

There’s no way you can expect to see a pile of money gleaming in your bank account at the end of every month if you don’t set the correct financial objectives. When you have a financial goal to work toward, you can purposefully budget and save to achieve it. However, you must distinguish between an attainable financial goal and wishful thinking. The more specific and quantifiable your goals are, the less overwhelming they will be. And the more likely you will be able to take actionable steps to achieve them.

Use Different Bank Accounts & Split Your Money

Unless you’re exactly 12 years old and your piggy bank is large enough to hold your entire life savings, you should already have at least one bank account from which you can withdraw cash and pay your bills via ATM. After you’ve determined your financial objectives, it’s time to open a few more bank accounts.

Here are some bank accounts you might want to keep:

Budget for daily expenses – Choose one with a good ATM network in case you need to withdraw cash. This is also the account you should use to pay for daily expenses.

Account for your monthly salary – If you’re having trouble sticking to your savings goals, this account is essential. Transfer the portion of your pay that you want to save into this account. You can even automate this step by requesting standing instruction. This will transfer a predetermined amount from one account to another every month.

Accounts for your various savings objectives – Are you saving for your first home, a car, or your children’s education? Set up a separate account for each so you can easily track your progress.

Spend Only 50% of Your Income

Everyone has a different idea of how much of your salary you should spend and save. Saving 99 percent of your income may be possible if you earn a large monthly salary and live like a monk. But for most of us, it is not possible. As a general rule of thumb, it is advisable to ensure that no more than 50% of our monthly income is spent on necessities.

Spend a Maximum of 20% on Entertainment

If you manage to allocate no more than 50% of your income to needs, you can spend up to 20% of your income on non-essentials. Those wants or desires make life a little more comfortable and fun. So it doesn’t matter if your poison of choice is overpriced hipster cafes, liver-murdering amounts of alcohol, designer handbags, overseas vacations you immediately post pictures of all over Instagram or collecting statues of scantily-clad anime characters. You can spend without feeling guilty as long as you don’t spend more than 20% of your monthly income on it. So, with these four budgeting hacks in Singapore, you can get the right bank accounts & save more!

International movers in Singapore

bank accounts
budgeting tips
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