Get the most out of your money!
It is never too late for anyone to learn more about personal finance and how to manage money better. It is an essential skill for anyone to have, especially now that we are facing an ongoing economic uncertainty caused by the COVID-19 pandemic. Worry not, here’s our 5 tips on how to manage your money better.
Tip #1: Plan your budget, and stick to it!
Budgeting is the most important skill to learn in order to successfully manage your income. A good budget will ensure that you achieve your financial goals and gives you a clearer picture of how much you need to spend on every aspect of your life. Everyone has different financial commitments and needs, so make sure your budget is tailored to your income and lifestyle.
However, a well thought out budget plan can’t ensure your financial security 100% if you are not spending according to it. Make sure to spend strictly according to what you have planned, or amend your budget based on your current financial situation in order to get the best out of it.
Tip #2: Never miss your credit card payment
Credit cards can be a friend or a monster that will slowly eat you alive – depending on how you utilise it. They are helpful when you don’t want to carry so much cash on you but you need to always keep in mind that you’re making all these purchases on credit, which you need to pay back eventually. The most important thing to remember is not to spend way above the amount that you can afford while using a credit card.
This is a very bad habit for your personal finance, as you will be charged interest on any outstanding amount. If you let this cycle repeat itself, the amount will snowball up to a point where you need to allocate a significant amount of your monthly income to pay your never ending credit card bills. If you are a credit card user, never miss a payment to avoid this situation from happening to you.
Tip #3: Build your emergency fund today
Do it now. Don’t wait because you will never know what sort of disaster is waiting for you just around the corner. It could be something minor as a missing smartphone, or a major catastrophe such as a robbery or sudden illness. Whatever it is, it will save you a lot of headache if you have an emergency fund prepared beforehand.
If you don’t have an emergency fund yet, make it your number one priority in your list of financial goals now. Keep your emergency funds in an account that you can access instantly so you don’t have to go through so many complicated procedures once disaster strikes.
Tip #4: Diversify your investment
Don’t put all your eggs in one basket, the old saying goes. Doesn’t matter how good you think a certain financial investment is, or whatever crazy amount of return on investment your agent promised you, never put all your life savings into one single investment. This applies to all kinds of financial products such as fixed interest accounts, bonds, shares and properties.
This will minimise the risk of you losing all your hard earned money if something unexpected happens to your investment. Diversification helps you manage the risk, as all investments are not always 100% profitable all the time. Build a balanced portfolio by having a mix of high and low risk investments.
Tip #5: Get the most out of your financial service provider
Your savings can make a substantial profit for you if you use it in the right way. With heaps of materials online nowadays, you can turn from zero to a financial hero by just a few minutes of research.
Or you can visit the Standard Chartered’s website for more information on various financial products, or visit any of the branches once the Covid-19 situation gets better for a quick discussion with experienced financial advisors.
Take control of your finances now and start building your future with Grab and Standard Chartered.