Dealing with Your Finances
Practical Tips for Financial Freedom
With the high cost of living in Singapore and the long office hours Singaporeans put in, it’s only appropriate that they get to achieve financial freedom and the life that they’re working hard to build. Unfortunately, working hard alone cannot be the solution. Financial literacy, self-discipline, and having the right goals will pave the path. Below are some practical tips to achieve financial freedom and the comfortable life we all desire:
Zero out debts
Before working on lofty aims, be sure to check on yourself first that you have already taken cared of any payables that may be gaining interest. They may seem trivial for now but if you leave them unpaid over a long time, it may catch up on you and leave you burdened with debts.
Build your contingency fund
Compute your monthly expenses and save up at least 3 to 6 months worth of your monthly salary. This should act as your contingency fund. Store this money safely in your bank. Remind yourself that you can only withdraw from the fund during emergency scenarios like sicknesses, loss of job, or death in the family. Getting short on your budget for the week is not a valid emergency scenario.
Invest in stocks
Singapore has a healthy economy so take advantage of the opportunities. When you have enough funds you can set aside for future use, consider investing in the stock market. You can create long term goals such as building your dream house, education fund, or retirement fund. In 10 years time or more, the money you have invested in stocks would have already multiplied. Make your money work for you.
Build your asset portfolio
Aside from investing in stocks, you can also consider buying properties of land. Maybe you can put up a house and have it rented. Or maybe you can start some businesses. Keep investing in things that will earn you more money. Do not rely on just one source of income.
Live within your means
You will not be able to achieve anything if you don’t live within your means. So if you have a vision for yourself, practice discipline. Be practical and control your urges to splurge now. Know your goals and keep your focus.