12/19/2023 0 Comments Smart money moves in your 20s![]() It’s a good idea to focus on saving as much as you can afford, after taking into consideration your monthly living expenses and bills. For example, if your goal is to save up to S$1,000 a year, you can work backwards and plan to save S$20 every week to meet your annual target. When it comes to starting an emergency fund, consider opening a high-yield savings account and begin with an achievable financial goal. During times of uncertainty, instead of applying for personal loans and comparing interest rates, your emergency fund will provide a financial cushion. Build An Emergency Fund To Save For Uncertain TimesĮstablishing an emergency fund can help you cover unexpected costs such as medical bills or an urgent repair for the home. It’s also important to keep your credit card balance low as well as check your credit report throughout the year. Wondering what it takes to build a good credit score? For starters, spend within your means and pay your bills on time every month. In turn, this can impact how much money you save on interest payments or the credit card perks you receive. In other words, your credit score can be a determining factor for whether or not you qualify for certain financial products. Having a good credit score will let you qualify for the best home loans, personal loans, credit cards, and more. Maintain A Good Credit Score To Unlock Benefits Remember to occasionally check-in with your budgeting goals and adjust your budget as your income changes. The good news is that once you create a budget, half of the work is done. But it is possible to follow this plan if you allocate your money based on the bracket an item falls into. Of course, this is easier said than done. ![]() According to the rule, S$2,500 should be spent on your needs, S$1,500 should be used for your wants, and the remaining S$1,000 must be used for your savings and investments. Suppose you earn S$5,000 a month, after all taxes and deductions. ![]() 20% should go towards your savings, investments, and emergency expenses.30% should be used for discretionary spending.50% should be spent on your essential needs.If you prefer to plan your own monthly budget, refer to the 50-30-20 rule which advocates splitting your income into three main categories: ![]() When it comes to budgeting, there are many free online resources and apps that can help automate the process. Tracking how much money comes in and out of your bank account every month will not only help you save toward financial goals but also ensure that you don’t run into a negative balance. While it may sound cliché, planning your finances starts by creating a budget. Create A Budget And Get Into The Financial Flow Read ahead for the steps to take to help you successfully manage your finances over the coming years. In addition to all these exciting milestones, it’s also the decade where you’ll embrace the responsibilities of adulthood such as building a solid financial foundation for the future. For many, it’s the first time moving away from home, learning crucial life lessons, and receiving the first paycheck. The 20s are said to be a defining decade. ![]()
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