HOLD ON TO YOUR CASH

Simply Her (Singapore) - - Trulife Special -

“More peo­ple are recog­nis­ing the need to save. That’s a good thing, but sim­ply putting aside money ev­ery month is eas­ier said than done,” says Al­fred Chia, chief ex­ec­u­tive of­fi­cer of Singcap­i­tal, and au­thor of two books, Mort­gage and Grow Rich and Grow Rich Sin­ga­pore Style. “You have to look at the big pic­ture, and take small but smart and prac­ti­cal steps to build your wealth over time.” PRAC­TISE DE­LAYED GRAT­I­FI­CA­TION. Iden­tify your needs and wants, but know the dif­fer­ence be­tween the two, says Al­fred. “It’s easy to want what ev­ery­one else has, like a designer bag or a new car, but ask your­self if you re­ally, re­ally need it. More of­ten than not, the an­swer is no. And if you ask your­self that ques­tion ev­ery time you go shop­ping, you’ll find your­self spend­ing less and sav­ing more – all th­ese costs add up over time.” SET ASIDE YOUR SAV­INGS FIRST. “In­stead of see­ing what’s left over at the end of the month and then putting that money aside as sav­ings, you should make sav­ing your pri­or­ity,” says Al­fred. “Ar­range monthly Giro pay­ments to a sep­a­rate sav­ings ac­count when your pay cheque comes in. That way, you won’t have to think about whether you have enough to save.” MAKE IT DIF­FI­CULT TO AC­CESS YOUR SAV­INGS. An­drea Kennedy, a cer­ti­fied fi­nan­cial plan­ner and au­thor of Own Your Fi­nan­cial Free­dom, sug­gests de­posit­ing your sav­ings into a sep­a­rate bank ac­count that has no debit or credit card at­tached to it. “That way, it’ll be hard for you to touch your sav­ings and you will be forced to make do with the money that you can ac­cess.” BUD­GET – BUT MAKE IT FUN. Bud­get­ing can be a lot of work. But if you look at it that way, you’re bound to feel un­mo­ti­vated to save, says Al­fred. “If you fol­low my 4-3-2-1 prin­ci­ple, bud­get­ing won’t seem that te­dious: Ap­ply th­ese num­bers to your monthly salary – spend no more than 40 per cent on your loan com­mit­ments, no more than 30 per cent on your regular ex­penses, put 20 per cent into your sav­ings ac­count and 10 per cent into in­sur­ance pro­tec­tion. This lets you see the big pic­ture.” RE­VIEW YOUR MORT­GAGE RATES. If you’re a home­owner, it’s im­por­tant to re­view your mort­gage rates ev­ery three years or so, says Al­fred. “Be care­ful of ris­ing in­ter­est rates. By do­ing a regular re­view, you can see if you’re pay­ing too much in­ter­est and ask your­self if you should re­fi­nance. Just be­ing alert can save you a bun­dle of money.”

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