Accordingly to the 2019 Graduate Employment Survey (GES) survey conducted by the Singapore polytechnics, the median monthly salary for graduates is hovering at the $2k range. If we consider CPF deduction, the take-home pay will be around $1.6k. The amount looks decent enough to adult, but how is it that the bank account is always empty at the end of the month?
The thing about saving up is that it’s always hardest to start. Many of us knows the importance of saving up for rainy days and emergencies, but how do we start doing that when outside temptations are so strong?
Distribute funds for “debts clearing”
Once you receive your salary, the first rule of thumb is always to set aside the necessary funds to pay off your “debts”. This could be in the form of study loans, instalments or even monthly bills. Debts can balloon quickly if you missed a payment due to the interest rates, and they are a pain in the ass for future finance planning.
This could also be a good time to start assessing your debts and evaluate if there is any expenses you could possibly reduce or even cut away.
Set different saving goals
Are you saving for your wedding or perhaps have already secured a unit in the BTO exercise and looking through IDs? In any case, think of what you want to achieve with the money you set aside.
With the goals in mind, decide how long you have before you need the money. If you have multiple saving goals, rank them by their priority and importance to determine the amount you want to set for them each month. If you do not yet have a 6 months emergency fund stash away somewhere, this could be a good point to start.
Pace daily expenses
While it can be seen as a monotonous task, do take the time out record down your daily expenses. One good way is to break it down to essentials (food, groceries, transport) and splurges (restaurants, clothes, bubble tea!!).
This allows for a good summary for you to properly gauge a basic amount that you need to allocate for monthly allowance and work out a buffer for extra treats.
It takes a lot of effort to practice self-restrain and control from buying the treats we enjoy. But at the end of the day, the satisfaction that you get when you hit the saving goals you set is gratifying and “future you” will thank “current you” for all those “no” you are saying now.