MoneySmart.Sg - Tips, tricks and uncommon wisdom to help you get more out of your money (2024)

FAQs

How can I trick my mind into saving money? ›

This rule helps estimate what percentage of your savings you should invest in high-risk assets. All you need to do is subtract your age from 100, and that's the percentage of money you can invest in risky assets like equities. The younger you are, the higher the risk you can take.

Historically, investing can be more powerful than saving up your money in a savings account. That's why we recommend investing for your big, long-term goals, like retirement, education for your kid(s), or growing your wealth (even more!).

Pay Off Debt and Stay Out of Debt

One of the best things you can do for your finances is to pay off all of your debt. To get started, focus on your most expensive debt—the credit cards and loans that charge you the highest interest. Once you have paid off all of these debts, focus on paying off your mortgage.

Prepaid cards

A prepaid card (sometimes called a prepaid credit card or a prepaid debit card) allows you to store and spend money without a bank account. You can load money directly onto the card and spend up to that total amount. Money can be loaded at places like ATMs, participating stores, or online.

One simple rule of thumb I tend to adopt is going by the 4-3-2-1 ratios to budgeting. This ratio allocates 40% of your income towards expenses, 30% towards housing, 20% towards savings and investments and 10% towards insurance.

Some personal finance experts call it the 3X emergency rule, wherein the emergency fund should be equivalent to 3 months of expenses.

Funds Transfer and Travel Rule Requirements

Treasury regulation 31 CFR Section 103.33 prescribes information that must be obtained for funds transfers in the amount of $3,000 or more.

The passage from Robert Tressell's 'The Ragged Trousered Philanthropists' in which one of the characters cleverly outlines how the use of money under capitalism enriches capitalists and exploits the working class.

What's the smartest thing you do for your money? ›

It's a simple rule, but it's still the most potent piece of money wisdom: don't spend more than you earn. Living within your means is a sure-fire way to stay out of debt, avoid creeping interest costs and create financial stability.

After re-examining the data, the authors of the collaborative paper concluded that more money is associated with more happiness for most, but not all, people. For 80% of people, happiness continues to rise with income past $75,000.

Canceling unnecessary subscriptions and automating your savings are a couple of simple ways to save money quickly. Switching banks, opening a short-term CD, and signing up for rewards programs can also help you save money. Making a budget and eliminating a spending habit each day can help lead to long-term savings.

Automate Your Savings

Don't just save when you think about it. Automate your savings so you don't have to think about it. Set up an automatic savings plan to place the same amount of money into your savings account on a regular basis, whether it's once a week, once every two weeks, once a month, etc.