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3 Financial Resolutions That Every Singaporean Should Be Making And How To Achieve Them

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Saving money is often one of the top few financial resolutions. After all, it is the foundation upon which other financial resolutions can be achieved. Without savings, you don’t have the required capital to be investing. Thus, becoming a better saver is the top of our recommended financial resolution that every Singaporean should be making. But we don’t just stop at telling you the ‘why’. More importantly, here’s the ‘how’.

1. It is all in the mind: A small mindset change can make a huge difference

When
you set your mind to becoming a better saver, the first thing that comes to
mind is to think of 1,001 tangible ways to save more. But sometimes, a small
mindset change is much more important than brainstorming for ideas to save
more. The ‘why’ of saving is much more important than the ‘how’ because the
‘why’ keeps you motivated to sustain your savings efforts. Without the ‘why’,
it is no surprise if you only sustain your savings efforts for 1-2 months.

Read on to find how these mindset
changes can help you up your savings game: 4 Small Mindset Changes That Can Help You Up Your Savings
Game

High interest savings account: Why settle for less when you can get more?

Singaporeans, typically set aside a part of their income and
save for a rainy day (if it even comes). And yet, despite all the savviness in
savings, they sometimes fail to realize a simple thing such as to put your
savings in a high interest savings account. After all, why settle for 0.05%
interest rate when the banks are offering 1.55% (or more) by just fulfilling
some criteria like crediting your salary with them?

Check out which are the
Best Savings Accounts in Singapore
that you should be switching to

Where do I start: Simple saving hacks to kickstart your savings journey

All journeys start with a single step. The same applies to
your journey towards becoming a better saver. It all starts from a single step.
A good first step to take towards kickstarting your savings journey is to find
ways to help you to save effortlessly. Ideally, you want to have money saving
tools that help you automate your finances and keep your budget in check. You
don’t want to be spending time keying in your money transactions into excel
spreadsheets. Instead, you want saving hacks to quickly turn you into a savvy
saver.

Find out more about
saving hacks from 5 Frugal Things to Do Daily for Better Savings
and Feeling Broke? You’ll Need This List of Money-Saving
Tools for Working Adults

One wrong step is a step too many: Avoiding saving mistakes is also vital

Besides thinking about ways to do it right with savings, the
alternate perspective of avoiding mistakes is also key. In all honesty, one
wrong step taken in the savings journey can be one step too many. A wrong step
will need you to take 2 (sometimes 3) steps in the right direction just to unwind
the wrong step. Thus, avoiding saving mistakes is crucial if you want to become
a better saver.

Find out what are the
mistakes that are commonly made when people think about saving money. Make sure
you avoid them vehemently.

5 Silly Things People Do When They Think They Are Saving

2.  Be a smarter spender

Controlling where your income flows to is only the first step
to step up your personal finance game. If you have already taken that step,
congratulations. You are now ready to embark on the next step, i.e. to be a
smarter spender. A smart spender possesses two key characteristics. Firstly, a
smart spender doesn’t spend where it is unnecessary. Secondly, a smart spender
gets more even by spending less in areas where the spending is necessary. If
you are aspiring to become a smarter spender, here are some tips that will be
useful for you.

Switching to a new electricity provider: Why pay so much for your electricity bills?

Did
you know that Singapore transited to an Open Electricity Market last year? If
you don’t already know that, the transition means that Singaporeans are now
able to choose your own electricity provider. You no longer have to stick to
the mandatory SP Group to supply your electricity. The transition not only
means that you get more flexibility, it also means that you can get your
electricity at a cheaper rate. You can get your electricity at a discounted
price (>15% discount) by simply switching out of your existing SP Group
subscription. Plus, with the Open Electricity Market, electricity providers are
fighting for your business. It is just like the telcos that are offering you
more to switch over to them. Surprisingly, despite the heaps of discounts that
new electricity providers are offering, some of us are still fighting that
inertia to change.

Check out Bankbazaar’s
guide to picking the best electricity provider to help you cut back your
electricity spending: A Guide to Picking the Best Electricity Provider in
Singapore to Suit Your Needs

If you still need more convincing, read
more on 5 Reasons Why Switching to an Electricity Retailer
Benefits You

Take advantage of credit cards to get more with less

Some
people claim that credit cards are a bane that should be avoided. But truth be
told, credit cards are one of the best tools that is made for smart spenders.
The only caveat is that you need to be smart about how you use it and which
credit card you are using.

For
those without credit card experience, starting with a cashback credit card can
be a good starting point. Cashback credit cards allow you to get instant discount
on your spending when you spend at a designated retailer. For example, OCBC 365
credit card lets you get 3% cashback on your grocery spend and 6% on your
dining spend. It also gives you significant cashback on big ticket items like
petrol where you can save more than 20% if you pump at Caltex or Esso.

Check out Bankbazaar’s
trove of cashback credit card guides to help you find the best cashback credit
cards for you.

Guide to the Best Cashback Credit Cards + When to Use Which Cards

9 Essential Tips to Remember In Order to Maximise Your
Cashback Credit Card

Online shopping: Hacks that every smart spender should know

Did
you know that when you shop, your brain produces a type of hormone known as
dopamine? It is the exact hormone that is produced when drugs and alcohol are
consumed. No wonder we are unable to resist the urge of shopping. While it is a
tall task to ask of anyone, but here’s the next best alternative: Online shopping.
Online shopping lets you satisfy that biological need to shop but helps you
keep your spending in reign. After all, if you can buy a similar item online
for a much lower cost, why buy it from the retail shop?

Check out some online
shopping hacks that you should know:
Online Shopping Hacks: 7 Ways to Crack the Best Deals

Be smart about your loans and reduce your interest payments

If
you are the proud owner of a HDB or private property, then a bulk of your
monthly income goes into paying off your mortgage. Although you know the money
goes into a valuable asset, don’t you just wish that there is a way for you to
reduce your monthly outgoing cashflow to the bank? Well actually, you can.
First, review your home loan and compare against the rest of the deals in the
market to see if you are getting the best deal. If you aren’t and your loan
isn’t in a lock-in state, you can switch from your current loan to a more
attractive loan. This can potentially help you save a few hundred dollars every
month.

Trying to hunt for the
best home loan deal in the market? Let Bankbazaar’s ultimate guide on home
loans make it easy for you. The Ultimate Guide to the Best Home Loans in Singapore
for 2019

Not sure how
refinancing works? Here’s a quick guide to help you understand refinancing. Refinancing Your Home Loan: Why Do It and How?

3.  Become a savvy investor

Read
also: 6 Essential Investment Books Every Newbie Investor Should
Read

For newbie investors, one of the things
you definitely should avoid is to dive head in to investments. But without
getting into the right investing mentality, you might find yourself prone to
making newbie investor mistakes that can jeopardize your portfolio. Investing
isn’t just all about the hard skills. Often, it is the soft skills that
determine whether you will become a savvy investor. If you are investing for the first time, make sure you go through these
guides to set your investing mentality right for success:

Beginner’s Guide: How To Test Your Risk Appetite When It
Comes to Investing

Beginner’s Guide: 3 Things You Need to Set up Before You
Can Start Investing

Singapore Savings Bond: Who says risk averse should stop you from investing?

For
risk averse Singaporeans, Singapore Savings Bond is a good starting point. It
is a sure-win investment (guaranteed interest rate) that you won’t regret
putting your money in.

Check out Bankbazaar’s
Singapore Savings Bond guide and how you can start investing easily with
Singapore Savings Bond:
How to Buy Your First Singapore Savings Bonds in 4 Easy
Steps

Robo advisor, regular savings plan, ETFs: Simple fuss free investing for the busy and newbies

After
hearing so many stories of people burning their fingers in the stock market,
who can blame them? It is little wonder why you might want to know everything
before they plunge into the world of investing. The other common excuse that is
often quoted for not investing is that we are simply too busy. You can be a
savvy investor even if you have a very packed schedule. This is because there
are simple fuss free methods to help you become a savvy investor like robo
advisors, regular savings plan and ETFs. You don’t need to be spending hours
doing your research and nitpicking stocks.

Check
out the following guides to help you achieve simple fuss free investing:

ETF
Guides

Beginner’s Guide to ETFs: What Types of ETFs Can You
Invest In?

Beginner’s Guide: What Are Exchange Traded Funds (ETFs)
and Why Invest in Them?

Robo
Advisory Guides

Robo-Advising 101: What Is It, Why Use It, Who It’s for,
How to Start

Robo Advisors In Singapore: What’s The Difference And
Who’s Good At What?

Regular
Savings Plan Guides

Which Regular Savings Plan Is the Cheapest?

Regular Savings Plan: Who Says Saving Has To Be In Your
Savings Account?

Now that you have the ultimate guide to
achieving your financial resolution, the rest is now up to you. Just a word of
caution: If you diligently follow this financial resolution guide for the rest
of the year, you will be surprised at the result. Make sure you mark your
calendar now to see how much you progress by the end of the year. We won’t be
surprised if you manage to out-do yourself with your financial resolutions.

Read also: Top 10 New Year Resolutions on Saving Money

The post [Infographic] 6 Things to Learn About Money from Warren Buffett appeared first on algo investing.

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