People who know me knows I'm a firm believer of earning more over cutting expenses. My personal belief is that expense cutting is very limiting because inflation is happening year on year and if your income isn't catching up then there'll come a point where you will run out of expenses to cut. Expense cutting basically translates to giving up on wants and desires which means compromising on your quality of life.
Having said that, prudent financial management is important for everyone. We cannot spend recklessly or we will end up in situations worse than expense cutting. We may also want to save up for bigger purchases. Which got me thinking, how can I improve my own financial robustness without compromising my lifestyle?
I've come up with 3 strategies which I'll be implementing for myself.
1. Make Full Use Of High Interest Savings Accounts
The prominence of savings accounts that give interests as high as 2-3+% if you fulfill a string of conditions have risen over the years. In fact all 3 local banks have their own attractive savings account namely UOB One Account, DBS Multiplier Account and OCBC 360 Account. To get the higher interests, conditions to be fulfilled can range from something easily achievable like crediting your salary to buying insurance or investment. (of course you need to weigh if the benefits of the insurance/investment plan you get for the long term justifies the short-term benefits of the savings account because the terms to these higher interests can change at the bank's discretion) For those who want a hassle free higher interest bank account, one consideration can be the CIMB FastSaver Account because it has no conditions tagged to it.
2. Pay Using Credit Card To Earn Cashback and Points
Another approach to saving money while maintaining your spending lifestyle would be to pay for these expenses through credit cards that give you cashback or points which you can convert to vouchers. I'd like to stress that I pay all my bills in full and on time. Credit Card isn't a good strategy if you do not pay your bills on time or in full. I am personally intrigued by the Standard Chartered Unlimited Cashback Credit Card because it gives 1.5% cashback on all spending without a cap on the cashback. This can be equivalent to 1.5% discount to all the stuff I buy, so why not? Another card I am in the midst of applying for is the American Express CapitaCard where an accumulation of certain number of points can allow you to change for CapitaVouchers. More free money without compromising on my lifestyle habits!
3. Embrace Technology With Payment Apps
I've a colleague who does not carry cash out wherever she goes. I got a little intrigued and asked her why not? She countered with her own question of why should she when she saves more cashless. Apps like FavePay, ShopBack allows you to get cashback when you make purchases. What's more, they are available in many prominent eateries and shops so it won't be something inconvenient to use. The rational is pretty much the same as why we use apps like Grab instead of flagging for a cab. You save money doing the same thing, so why not?
“Many folks think they aren’t good at earning money, when what they don’t know is how to use it.” —Frank A. Clark
Disclaimer: The content created are based on my personal opinions and may not be representative to everyone or any organisation. If you have any doubts or queries pertaining to insurance or investment, please seek professional advice from a trusted adviser in an official setting. You may also reach out to me if you do not have a present adviser using the message box under 'Let's Talk'.
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