Asked 3w ago
Share your interesting tips, hacks, tricks and habits you have created and share with our community today!
I realised my money mantra looks something like this:
"Automate what's good for you, make the pain manual"
I automate (GIRO) my:
Regular savings sum to my Joint account
Mom's monthly allowance
Investment monthly sum (dollar cost averaging)
Insurance premiums annually
I do these manually:
Manually pay my credit card bills so I feel the pain of how much I am spending every month
Manually key in some large ticket expenses on my app
Anymore interesting ones to share with the community? :)
No right or wrong here!
I also automate the most important stuff e.g. mum's allowance and DCA to IBKR etc.
In addition, I have arranged it such that all my bills can be paid on 1st of every month. And I have also created a finance checklist which I reset every month so that I do not miss out any task.
So every 1st night of the month, I will be paying my bills,keying in my expenses into an excel spreadsheet and checking off my checklist.
I am also using credit cards to fund prepaid cards. This means that my credit card spend meets the spending cap exactly every month. So that I have a grip on how much monthly outflow there is without having to whip out an expense tracker everytime I buy something.
Here is a list of mine
Take 2-3 hrs 1 day in a month (usually last day of the month) to tabulate all my accounts to compute the net worth
Before the smartphone age, come back home before do anything, fire up the computer to record the day's transaction in Quicken
Nowadays with smartphone, after ordering food or getting the bill, record the transaction in YNAB (you need a budget)
After you get off the bus or train, record the transaction in YNAB
Before starting to vaccum the floor, put on bluetooth earphones and listen to something money while vaccuming
Definitely use an expense tracker, so you are fully aware of what you are spending on. Sometimes the data is really insightful. I recommend this app (Money Manager), but actually any app will do, as long as you keep track of all your expenses.
Also keep track of all your subscription services, like iCloud, Netflix etc. (there are more and more businesses adopting such subscription models) - so you know that you are paying for those. Alot of people tend to forget that they are subscribed to something, which they ended up paying for unknowingly, even if they have stopped using it.
I think the key is to keep track!
A penny saved is a penny earned - so the mental model is to try to remember to only spend when we need to.
Doubling our money is the best way to preserve capital - so the mental model is try to remember than we need to find high probability way to invest properly.
Hello! At the end of the month i will separate my income into 4 different accounts:
I will always set aside the exact amount of expenses first that i always spend monthly then the remaining income i will divide accordingly: 20% - leisure, 40% - savings, 40% - Investment.
Hello! Here is my way:
Make plans for every spending. When you get your salary, try to make full detailed plans to make every expense counts.
Secondly, give up any unnecessary costs to reduce total bills.
Try to learn to some new payment ways. This is a good idea I think, it can relieve economic pressure efficiently by paying later monthly.
Hope this answers you well. Thank you!
1) Places that require credit cards may not be the cheapest place. Don't intentionally seek for places to 'reward' your spending. Sometimes, food places that only accept cash are cheaper...
2) For complicated spending requirment accounts like UOB One, it is best to track what you spend. Also take note of the various MCC code that is excluding your spend..
3) Always check out Seedly/Shopback/various groups for deals and lobangs, you will be surprised how much you can save with some deals.
4) Track your spending to a point, you roughly know your monthly expediture :)
Here goes mine...
1) yes to automation, my mantra is as much as possible. I automate transfers of allowance, giro to all the key bills, setup future payment of my credit card bills, and even the savings (to set aside / accrue) into savings goals. So my pay comes in 23rd, between 25th to 28th the monthly transfers of allowances and savings goals are completed etc. Only difference I see against other folks is I don't transfer my savings, but rather only the allowance to my spending account.
2) this year I made a change, instead of a monthly allowance, I have weekly transfers of allowance to my spending account. In addition to addressing spending variances for long / short mths (5 weeks vs 4 weeks), it leaves a higher average balance in the 360 acct to earn interest.
3) I have a weird habit to never keep more than 2 dollars of coins. Partly coz it just doesn't make sense to buy a coin purse, or those clanking sound when you walk. Whenever I have more than 2 dollars of coins, they must be used first in the next purchase, coz it makes sense to have less coins and keep those 2 dollar bills to make your wallet lighter right?
4) my new initiative from 2019 is to set aside an amount for tax relief measures that is based off my incremental tax rate. Cause I realize 15k for SRS and 7k for cpf top-up is siong. But when I set it to be say 11.5% of my taxable salary, the amount makes more sense. So the more I earn, the more relief I do to reduce tax. Don't have to go for maximum.
5) regular savings / BCIP - In the past I would have just set aside the regular monthly amount. Since 2018, I came up with my DCA2 system - in addition to choosing the counter to BCIP into, I adjust the monthly contribution (try to at most twice per year, but this year is special) based on the forward dividend yield - so if the yield goes above 5%, the bcip amount would be like 1k monthly. If the yield is between 3.5 - 5%, then its about 800, if the yield is below 3%, then i set the bcip to 600.
6) SSBs as a way to enhance cash flow / hedge against mortgage loan - I now focus only on SSBs for the mths of Jan / Apr / Jul / Oct. Because few stocks / reits pay dividends in those mths. I have a cash flow drought - to minimize the difference in interest + dividends received monthly, SSBs into these four months will reduce variance in incoming monthly cashflow. The other thing I see is also apply a concept similar to DCA2 system to allot more funds for purchases of SSBs, so that I would end up with a higher average 10 year yield that plays differently to my mortgage which is on 3 mth SIBOR.
7) listen to central banks. Interest rates goes up means need to store more cash and buy higher rate bonds. Interest rates go down means economy no good, more spending required... So you use the cash stored to do purchase assets like bank stocks and reits, so your trade counterparty can utilize the cash proceeds from the sale of stocks / reits to boost consumer spending and stimulate the economy.
#1 immediately pay invoices
#2 calculate roughly what sum i will need in this month and transfer the rest of my salary to my brokerage account
#3 using TransferWise for any currency conversion
#4 being generous with family & friends
One of the things that I do, is I save up all the coins that I get. I use a card holder so there is no place to store my coins (little psychology tip I guess). So whenever I get coins, I just chug them in my bag or pocket or in my car (or a specific container). I’ll then go on a mini treasure hunt every month just to surprise myself. In a year, you would be surprise how these 10,20,50,$1 coins add up!
Another habit I developed is to save up any $5 notes that I get. My logic behind this is that I don’t receive $5 notes very often, so it becomes a little “sacred”. Then at the end of the year, I’ll just bring my stack & bank in together with my coins. Yes there’s a little fee but I feel it’s worth it for the amount that I saved!
Hope this helps :)
I built a habit to collect 1 dollar coins! Whenever I have to spend on something, if I receive a coin in change I don't use it and keep it at home. Challenge of course is depositing it, so you'll need someone with a child's account :)