PHOTOGRAPH: 123rf.com
An account manager by day andmoney-savvy blogger by night,Fiona Cher aka Budget Babe,saved $20,000 just a year afterstarting work – and she’s only 25!
Her blog www.sgbudgetbabe.com draws about80,000 hits per month. To help The Weekly’sreaders end off this year on a financially healthynote, we ask Fiona to spill her secrets for easy,realistic – and doable, money saving tips!
SAVE$1,800:DETERMINE A BUDGET
Know how much you are spendingevery month. Then, decide whichexpenses are necessary and whichare not – it will allow you to draw up a realisticbudget. As a buffer for emergency spending,Fiona recommends adding 20 per cent moreto your budget. She shares, “If your monthlysalary is $4,500, your take-home should comeup to $3,600. Supposing your budget is $1,500,the additional 20 per cent means you will haveabout $1,800 to spend and $1,800 to save.”
Lim Shiyun, a financial services consultantwith AIA Singapore, observes that it is typical formost of her clients to spend at least half of theirgross monthly salary. So taking the $4,500 asan example again, this means that expenditurecan go up to $2,250 – a little beyond the $1,800Fiona recommended. “The other 50 per centcan be divided thus: 20 per cent to CPF; and 10each for savings deposits, insurance plans andinvestment policies,” she explains.
As for which aspects to cut, Shiyun hasa tip: “I encourage my clients to look at howmuch they’re spending, for example, on their children’s tuition. If they do not observe any significant results, they could consider dropping lessons and spend more bonding time instead.”
SET UP A SYSTEM FOR SAVING
Many banks offer automatic money transfers, soyou can determine the amount to put aside foryour savings – and have it deducted from yourbank account every month.
Read more:8 gelato cafes in Singapore to satisfy your sweet tooth
Another way to save, points out Shiyun, isto set up three bank accounts: One for creditingyour salary and spending, one for investmenttransactions, one for rainy day funds.
CHECK YOUR EXPENSES
Keep track of what you are spending on andhow much. Identifying which areas to cut backon can help speed up your savings. Downloada free app like Expense Manager, which Fionafinds especially useful because it allows her tocustomise her spending categories.
SAVE$520-SKIP THE TAXIS
Instead of splurging on taxi fare(surcharges for booking, peakhour and ERP can add up to $30or more!), take one of the premium SBS busesthat ply between various housing estates andShenton Way. The fares range from a modest $4to $4.50 per trip, and you’ll beguaranteed a seatfor some extra shut-eye. “Every month, you canexpect to save about $520,” Fiona lets on.
SAVE$92-CUT BACK ONGOURMET COFFEE
A Short Vanilla Latte from Starbuckscan set you back by $5.80. Multiplythat by 20 working days and the figure comesup to $116. If you need a caffeine fix daily,why not take away good ol’ kopi from yourneighbourhood coffeeshop – don’t forget tobring a tumbler! At $1.20 per 250 ml, you’ll bepaying only $24 for the same number of days.
SAVE$226-PACK YOUR LUNCH
If you often have a salad bowlfor lunch on weekdays, you’respending about $12 each time. It’smore economical to make your own – it willcost about $2.50 per portion (depending oningredients). If you have a salad lunch twicea week, savings could go up to $76. Or, packlunch four times a week. Says Fiona, “My officelunch buddy and I would cook for each other onalternate days, and eat out once a week. I musthave saved about $150.”
SAVE$250-BUY YOUR OWN DRINKS
If going for Happy Hour drinksis a regular after-work affair, buyyour own alcohol and enjoy it atsomeone’s house. Alcohol is heavily taxedhere, so this will help you enjoy liquor in amore wallet-friendy way.
SAVINGSCALCULATION
TOTAL SAVINGSPER MONTH:$1,800 + $520 + $92+ $226 + $250 = $2,888
AFTER 4 MONTHS:$11,552
This article was originally published in Singapore Women’s Weekly.
