Asked by Anonymous
Asked on 05 Aug 2018
Hi, I'm new to credit cards and I have plans to sign up for POSB Everyday Card. The benefit of the card is rebate, cash rebate and cash back etc. But I don't quite understand what are those thing. Also how does it work and how do i use this benefit?
1) 50% or more for savings which are channeled to warchest
2) 30% for fixed expenses like parents allowance, insurance, hp bill, lunches, transport etc
3) 20% for discretionary expenses for outings, personal items, makan etc
For take home salary I allocate based on:
fixed expenses (hp bills, electricity, transport, loan payments, meals etc.)
optional expenses (outings, nice-to-haves)
I allocate to savings first; then fixed expenses and finally optional expenses.
Regarding the credit cards I recommend Standard Chartered Bank Unlimited Cashback (since I read you're taking POSB Everyday card for similar reasons). You can read the reviews here. https://seedly.sg/reviews/credit-cards/scb-unlimited-cashback
Usually for cash back cards they might have some criterias (minimum spending, categories of expenditure - gas, F&B etc.) so it would be good to read up. I personally am using Standard Chartered Bank Unlimited Cashback.
Hope this helps!
I put a fixed amount into POSB SAYE which gives me 2% interest. Remaining funds are used for daily expenses and telco bills. Prioritize my needs over wants and pamper myself and/or my family occasionally
hmm.. i dun really allocate my salary, but my fixed expenses are allowances from parents, grocery, meals and bills. These amount are more of less around the same range. Hence, I just make sure they don't go beyond the expected amount and I'll just save the rest.
On months where there are special expenses (e.g., ang baos for weddings, gifts or dinners for special occasions), I'd either try to spend less in the preceding months (if possible, but cutting grocery) or just take it as dipping into my savings (if grocery is already at the bare minimum).
I don’t allocate, but I have designed a financial spreadsheet to track my networth over time.
The amount in each bank account
Porfolio value (Stock / Bond)
Monthly spendings on each credit cards
Also, it is good to make a list of exisitng fixed expenses, see if there were any credit cards that offers rebates/discounts on these expenses.
If expenses is consistent and above a certain amount eg. $500, together with salary credit & Giro / online payment, can also review the savings/current accounts available to see which provides the highest interest rate.
For me, I have set up automatic transfers to 1) parents, 2) saving account, 3) investment, 4) remainder in same account for bills giro