When to say "Stop" when saving money?

Hi,

Currently, I have a couple of savings habits;

Every week, I'll transfer a certain amt into my spending acc E.g. $300+-. After the weekend, I would transfer the remaining amount back into my savings acc and repeat weekly (Recently Started)
Withdraw $20~$40 cash, in case of internet breakdown or stalls with cash-based transactions only (Recently started, due to the recent issue with NETS, DBS, etc)
1. Any coin accumulated every day or every week, saved by keeping them in a piggy bank (Started 1~2 years ago)
2. Any $5 note accumulated every day, saved by keeping in piggy bank (Started 1~2 years ago)
3. Every week, must at least save $2 note, additional $2 notes to be save after the weekend. (Recently Started)
4. Every week, transfer $10 of my allowance to my main savings acc. I have 3 accs, 1 spending, 1 savings, 1 standby in case spending acc fail or have issues.

Based on these saving habits, I have accumulated about $1.3k.

With that being said, when you do think it is think to cash in my savings and repeat the process again or continue to save?

This is because there are times that I think of cashing in my savings to utilise the interest rate of my bank acc but then also want to see how far can I save. E.g. Save $1k in $5s, want to see it grow to $2k in $5s, etc. This also help me by preventing me from overspending as most of the time as I don't have a lot in my 2 main accs (1 spending n stand by acc) to utilise.

Any suggestions or opinions regarding my strategy? Or what are some of your saving hacks, and when do you use cash in you savings and repeat the process or never?

OCBC FRANK Account DBS/POSB Multiplier Account Standard Chartered JumpStart Account

Discussion (22)

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Ace

17 Jan 2024

Interesting...

i just do standing order to another account (for saving) once my salary comes in (spend vs save account), leaving just enough for spending (I track my spends) + bank min. bal (before they charge me fall below fee).
I adjust the standing order amt - if I have other new goals (e.g. travel/for house/insurance premiums), when the balances in the saving account grows (b4 i need them to meet goals) then I review and move them to Tbill/SSB.
When I need to pay (e.g. for travel/ins premiums), I moved them back from savings to spend account and pay immediately for that purpose.
For the fun of it, every govt cash top up, interest from SSB/Tbill i manual transfer them to my saving accounts the moment they enter my bank account - so they kind of become my travel/happy fund.
I will do a forecast (when I do monthly spend tabulation) so my cashflow won't be affected.

Wasn't that structured few years ago - but i cannot tahan one day so decided to do this. Now more comfortable w a plan in mind. Still got lots to learn.

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Isabelle

15 Nov 2023

FIRE Retirement Enthusiast at SGMoneyMatters.com

Wow, this is really detailed!

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JH L

Edited 11 Nov 2023

I am impressed by the details you are giving for saving, just going to leave my two cents here:

To address the title (which the content never really mentions much), generally it is better to save if it is your best ROI approach right now. I spent a lot on my own development and while I am aggressively saving now, I never regret my decision to spend on my development, because it helped me gain numerous opportunites that I would not get otherwise (plus good favour from colleagues and bosses never hurts unless you become stingy), and as young people, we need to be ready for such opportunities as they come.
I like the level of detail here, but you also may need to factor in weeks where schedule or life will interfere with your strategy. I have seen many grand plans go to dust the moment life gives them a snag. I rather you do an automatic transfer monthly away before you see the money. Simplicity is literally an underrated superpower here.
If you still want to stick to your plan, ask yourself what is your Plan B? You aren't going to save if an unavoidable crisis hits you. (Like caring for parents etc.)
Lastly, you may find more satisfaction in your savings goals by growing your income as well. You can only save so much, but your income and wealth growth potential is unlimited.

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