Everyone would have to ask themselves this question at some point in time or for some, a regular habit to check on their cash flow or do budgeting. Especially in present days when inflation rockets high and show no sign of abating. Like time, money for the majority of us is limited, so managing one’s finances wisely and with much prudence is pertinent. Allow me to share a few key pointers where we can better learn to manage our money and develop good money habits.
This may seem like a no-brainer, but it seems like many folks out there do not have a good idea how much they spend every month. Most will know how much is their inflow but not many have a good idea of their outflow. This is something everyone should set aside time to do regularly.
Do we need to drink Starbucks/ bubble tea every other day?? Is a new dress/accessory necessary every month? And with transport costs up so much, is it time to scale down on Grab rides and take more public transport? This is also good for the environment. In addition, be mindful to pay one’s credit bill in full to avoid the high fees. Remember all these do add up to a significant amount if one is careless.
Everyone and every household will have big-ticket items, and I am not just talking about the next nice holiday trip coming this November/December. When is the last time you review your insurance portfolio, and when is the next due date to relook at one’s mortgage? Assessing your cash flow before you decide to change/upgrade your car will be useful as well.
We all are on the learning journey about managing our finances. This is not something that is a one-off lesson, but it is a lifelong process. I want to encourage you to continue on this journey, even if you have fumbled and made mistakes along the way. One major pitfall to avoid is to just take the easy way out and just tell yourself, that it will work somehow. This is wishful thinking. When we can press on and develop good habits to manage our money, we will be able to save more, be less likely to have substantial liability/debt, and make better financial decisions.
If you need an adviser to do a financial health check, feel free to contact me.
I wish you all the best in your journey to better steward your money.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
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