I’m super broke this month because I went overzealous with the bank
withdrawls. Usually I would withdraw the total amount for the month’s daily expenses
but this month I decided not to and what a bad mistake it was.
I practically lost count of how much I could withdraw and now I’ve got to make
up for this silly mistake with next month’s pay. And that leaves me with basically $20 in excess for spending on leisure.
So in order not to commit the same stupid mistake as me.
We should all have a proper $$$ plan.
Here are some tips which I have to share.
1) Have a seperate bank account for your savings.
Get a MySavings account from POSB, Stand Chart’s E-savers or Ocbc’s life savers..
Such savings accounts basically deduct a certain amount of money from your main paycheck bank account. And they make it difficult for you to try to withdraw the money you’ve put aside but imposing certain rules to deter you such as withdrawing via bank counters only (think about the hassle & the long queues) or charging an admin fee for withdrawals.
It’s advisable to save at least 20% of your monthly paycheck and have a minimum of 3 months’ salary in your bank account for a rainy day. You never know when the money might come in handy.
2) Get an expense book. Artbox has loads of these cute little notebooks specially designed for such a purpose.
Take note of your daily spending and review it weekly.
This book shows you where your money is going and you can see where you can cut down on unnecessary expenditure.
Like for me, sometimes most of my money goes to cab fares which can hit $20 a trip since I live in the far end of the island. Cabbing in Singapore is so expensive, I try to avoid it as much I can.
Next, set a budget after you have reviewed your daily expenditure with the help of a budget book and stick to it.
Note down how much you spend on daily necessities such as transport, food and credit card bills. Put aside the money needed once you get your paycheck. This would ensure that you won’t spend the money required to pay the bills and end up in debt.
3) Leave your credit cards at home. Bring out only the ATM card for emergencies.
Credit cards cause you spend more because you don’t really feel the pinch till you recieve the bill weeks later.
And always pay your credit card bills in full. If you’re always late in payment and chalking up hefty interest, then maybe you should cut that card into two.
5) Do not go out shopping without a shopping list. This will help you stay clear
from buying unnecessary impulse buys which you would come to regret later on.
Write up the list and stick to it. Buy only what you need.
6) Keep an item inventory. I do one on blogspot. I keep tab of what I buy and I have enough beauty products to last me till 2011. This was the result of overspending on skincare and makeup. Everytime I feel tempted to try a new product, I remind myself that I still have lots at home. So I try to get a sample instead and it’s FOC anyway.