So, you have just entered college. Suddenly, you are forced to be financially independent. Maybe the allowance you take from your parents have shrunk, maybe you are going out on dates to eat more expensive food, maybe you are just busy studying and have no time to earn cash. In any case, how can you optimise your finances?

As a freshman, let me share how I manage my money system.

Optimising Cash

Let’s begin with optimising cash! I cannot stress this enough, get yourself a high interest savings account. As a relatively frugal student, I also need a "no-frills" account as well. Personally, I use Singlife and CIMB FastSaver to store my cash.

I have been using Singlife back when it gave 2.5% interest in 2020. Although there have been slightly higher yielding products that popped up along the way, I have been very satisfied with this insurance savings plan. Withdrawals are free and fast. The yield is also consistent, unlike some cash management accounts. Also, they will be increasing interest rates from 1.0% to 1.5% in October 2022, which is a huge win.

I also recently started a CIMB FastSaver account. This is to earn 1.1% on any amount past the $10k amount. It is a very popular choice within the Seedly community. I have been a happy user and the account opening process was very smooth for me.

While doing research for these accounts, I also discovered some alternatives.

• RHB High Yield Savings Account offers 1.2% for the first $50,000.
• Singtel Dash Pet offers 1.6% for the first year for the first $50,000.

There are also platforms which have projected yields, this means that the yield is not guaranteed. I used them in the past, but I realised that my goal for holding cash was to preserve its value as much as possible, instead of allowing it have the chance of turning negative. But for the sake of completeness, here are some offerings from Grab, Endowus, Stashaway, Syfe, Moomoo, and Tiger Brokers.

Optimising Spending

I don’t spend much, so I needed a card that would offer me cashback without minimum spend. Most of my money every month goes into public transport and food.

For public transport, nothing beats Revolut’s public transport cashback promo. I top up $300 to the account every month, and enjoy a cashback of 20%, capped at $10. This means that I can only spend $50 for public transport monthly to optimise the cashback.

Usually, I do not go past this $50 limit, but if I do, I have a backup plan! I use the DBS Live Fresh Student Credit Card to enjoy 5% cashback. Since Revolut’s promotion is scheduled to end this month (although they have been extending it since last year), I will be switching over to this DBS Card when the Revolut promotion ends.

Anything outside of public transport, I use my GrabPay card. I am a platinum member, so I earn 1.2% in Grab points. However, I try to redeem them during flash sales and promotions, so the yield is probably higher. Also, I use my Standard Chartered Jumpstart Debit Card to top up my GrabPay account. This card gives me an additional 1% in cashback. This means, every month, I will get 2.2%+ of cashback from this combo.

Optimising Budgeting

I use the Wallet app by budgetbakers to track my spending. Although I don't budget as strictly these days, I am still able to "eyeball" my spending and gauge how much I spent for the month. Using this information, I will update my spreadsheet every month. This allows me to display my data as charts which helps me visualise my spending.

Optimising Investments

Every month, I try to buy 3 shares of CSPX, the Ireland domiciled SP500 ETF. Depending on market conditions, I put a higher amount during downturns and also buy certain stocks when I believe that the selloff is too great. I personally use Interactive Brokers.

I keep things as simple as I can, and I will remove things from my financial system if I deem it as too low ROI (Return on Investments). Managing your money system requires time, and time is a precious resource as well. Being able to manage that is crucial!