I was in a minibus on the way to Malacca from Singapore to attend a wedding when I got absorbed in this conversation about how my friends use clever hacks to optimize their savings and spending. I was so intrigued I set up an appointment with them to gather more information.
If you are like me who likes hassle free and believes in earning more than you can spend, you probably might not find this information useful. Having said that, my perspective have shifted somewhat because I've become increasingly 'greedy' to achieve my personal goals faster. Even a minute faster is faster, so smart hacks help. Moreover, while it takes effort to get started, I feel the effort is minimal once you set things up. If your resources are stretched such that you can't take risks in the markets or commit to long term savings, you seriously need this.
Use savings accounts that give you higher interests
In today's day and age where technology is so rampant and we are in Singapore mind you, I'm so amazed there're still so many people saving money in a POSB savings account at 0.05% interest. There are many bank accounts in Singapore that gives higher interest. For people who are lazy like my old self, you can take a look at the CIMB FastSaver Account. All you need to do is deposit money in there and earn interest up to 1.8%. Of course, the interest payment is tiered. You can visit their website to find out more.
Assuming you are more diligent and is willing to fulfill some criteria, you can potentially earn more than 3%. Yes, you heard it right. These are savings accounts where your money can be withdrawn or deposited anytime you want. So is it difficult to qualify for these amazing interests?
Generally, it is all about understanding your daily habits and utilizing them smartly. Some common criteria that makes you eligible for higher interests in these bank accounts include salary crediting, credit card spend, housing loans, buying bank products and making a number of giro transactions. In order to find the most suitable account that matches your spending habits, you may wish to refer to this savings account calculator on Seedly that can streamline this information for you.
Save more money through cashback by paying through credit cards
In the past, I used to ignore the credit card benefits I get and wasn't fussy about the type of credit card I use. In recent times though, I start to scrutinize the cards for either cashback or miles benefits. In a bid to understand how these clever financial hacks can benefit clients, I decided to evaluate my own habits and plan out a strategy to earn more. After evaluating my spending and travel habits, I decided that cashback would help me to shore up my resources faster. My present priority is less travelling and having more money to invest.
For cashback credit cards, it's important to note two aspects. Firstly, there's a maximum cashback limit on most cards so if the limit is easily hit, the cashback may not be a lot of savings even if the cashback percentage is a lot. Also, you need to consider if your card can be linked with any multiplier bank accounts. The reason you need to consider this is because if you are spending eg a Citibank card for the cashback but you are using the UOB One Account which awards you additional interest for a certain card spend amount, your total cashback savings on your Citibank card may not be more than the total cashback you get on both the UOB One Card + interest from the UOB One Account. For myself, I'm currently in the midst of applying for the UOB One Card (I cancelled it previously) and will look to utilize the One Account for savings. The UOB One Card gives me up to 3.88% rebates which I interpret as a form of spending discount on my purchases. You can read more about the benefits of the combined One Card with One Account here.
Use GrabPay as a spending mechanism
As I just shared, I'll be intending to use the One Card to maximize my rebates. So the One Card rebates you based on whether you spend $500, $1000 or $2000 consecutively for 3 months. For my own expenses, I used to spend a good amount in cash. Recently, I've learnt to consolidate all my food and bills expenses on GrabPay. Whenever you top up your GrabPay, it's considered as a credit card transaction. Hence, by transferring the payments of my food purchases to GrabPay, I essentially earn rebates on my credit card as well as earn another layer of GrabPoints when I spend using GrabPay. Some of you may not know this but you can pay your AXS bills through GrabPay.
Save more money by shopping online and through mobile apps
Apparently, you can further save money when you use apps and websites like Shopee.sg, MyFave.com or Shopback.sg. Websites like Shopee offers discounted vouchers and other deals for online shopping from time to time which helps people to save more especially when they purchase discounted vouchers. For instance, if you purchase a 10x$20 Grabfood promo code for $160, you effectively saved $40 from your Grab expenses and on top of which, earn rebates/cashback when you make the purchase of the vouchers through your credit card. This means the total savings is more than $40!
For a foodie like myself, I've found the benefits of using FavPay at food establishments attractive because I get cashback at my dining venue, earn GrabPoints when I pay on FavPay with GrabPay and earn further rebates on my credit card when I top up my GrabPay. That's 3 layers of benefits for 1 purchase!
I've also recently gotten the shopback app. To be fair, my friend had referred this app to me quite a while back but I didn't really bother to find out more about its benefits because I ASSUMED it's just some small discounts for purchases. What it really does is to give cashback for purchases which you do through the app or if you link your credit card to their system prior to making a physical store purchase whenever they have promotions. The cashback can be CASHED OUT. Wow! I find this extra earnings so much better than doing Grab Hitch!
Summary
Frankly, maximizing spending and savings isn't my main forte. My preference remains that we should earn more than we can spend. However, I've made some effort to understand the modern spending optimization economy and these little hacks can really go a long way to creating more wealth and greater savings for yourself.
Earn Better by saving your money in a bank account that gives a higher interest. If you are lazy there are accounts that pays fairly well with no requirements. Should you be willing to do a little more, use the Savings Account Calculator mentioned above to help you source for an account that maximizes your spending habits. You can also gain money if you use certain apps like Shopback which rewards people real money as long as they purchase through their system.
Pay Lesser by spending through credit cards. Find the optimal cashback card based on your spending habits to help you earn rebates/cashbacks while you go about your usual spending. This is akin to getting a regular discount on your purchases. You can utilize apps like GrabPay and other shopping hacks to layer your cashback benefits thereby saving much more than just the cashback on your credit cards.
Please note that should you choose to use the credit card strategy, this is only advisable if you can PAY YOUR CREDIT CARD BILLS IN FULL EVERY MONTH.
If you know other hacks to save and earn better please drop me a message. I'm happy to learn new strategies!
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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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