| FAQs on Managing Your Money |
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How should I plan my expenses? |
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| You can plan your expenses by having a budget. A budget is a simple ?nancial plan that itemises individual or family spending. You will know exactly how much you earn, how much you will spend and the balance available that you can put aside for your savings. |
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| You should budget to make sure you spend within your means. A budget can help you realise your short-term, medium-term and long-term goals. It also prevents you from landing in financial trouble and helps you control your financial future. |
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What is the minimum amount that I should save per month? |
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| There is no ideal limit that you may want to set aside as savings per month. The most important thing is for you to set yourself a savings target which is consistent and realistic to follow. Aim to save 10% of your gross annual income or break down your savings to achieve your short-term goals and long-term goals. |
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Can I just invest my money as part of my savings plan? |
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| Investment is different from savings. When you invest, there will be an element of risk involved. The rate of return on your investment is not consistent as it may go up or down depending on the profits made. There is also a possibility that you may lose your money when the company you invest in makes losses. When you save, your money will grow with relatively less risk of incurring losses as compared to other investments. However, if you have excess funds, that is, after you have put aside some money for emergencies, you may want to invest your money to obtain higher returns. |
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Do I still need to put aside some savings when I have invested in various investment schemes such as unit trusts and education funds? |
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| You should set aside savings which you can withdraw easily for emergencies. In difficult times or in case of emergencies, you can use these savings instead of using credit cards to make payments. Having a reasonable balance in a savings account releases you from the stress of living from one pay day to the next and gives you a sense of security. |
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What is the benefit of saving my money in the bank when it is more convenient to save it at home? |
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| By saving your money in a bank, you can ensure that your money is safe and at the same time get returns on your savings. |
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How can I save money when buying things such as clothing and household items for my family? |
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| There are several ways which can help you save when shopping for your family such as: |
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a. Plan the things that you want to buy |
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b. Avoid buying ‘nice’ but unnecessary things |
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c. Bargain for a lower cost whenever possible |
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d. Buy in bulk if you have sufficient cash |
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e. Buy during special offer or sales period |
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