Just landed your first full-time job? Congratulations!
While you’re excited about seeing your salary credited into your bank account every month, you may also be struggling to figure out how to manage your finances. Don’t worry, we’ve got you!
Here are 4 key moves to make when it comes to nailing the financial aspect of adulting.
1. Budget
Contrary to popular belief that budgeting is only for those in a pinch, this process of creating a spending plan is critical when you have savings goals, be it owning a house or car, or building an emergency fund.
You could check out mobile apps, such as the Singlife App, that allow you to track your expenses in real time, as well as set goals for big purchases that might come your way. This allows you to have a record of exactly where your money is going and how much you’ve saved.
As you get familiar with this move, remember that everybody has different lifestyles, savings goals and priorities, and while there are many different budgeting guidelines, you shouldn’t feel pressured to follow them to a tee. Take some time to adjust your monthly expenses and savings till you achieve a budget that suits your needs.
2. Invest
Even though your career has just taken off, it’s not too early to start planning for retirement. Be it in the form of index funds, stocks, ETFs (exchange-traded funds), ILPs (investment-linked policies), fixed deposit schemes or robo-investors, investing is a way to start planning for your retirement, as well as hedge against inflation.
There are many resources such as blogs and webinars to help you understand the different investment classes, how they work, and the risks involved. If you’re new, you can opt for lower risk investment products, some of which offer fixed returns.
3. Multi-task
Why just spend when you can save, spend and earn all at the same time? Yes, we all like to indulge without feeling too guilty. Heh!
Certain bank accounts or cards offer rebates or cashback on spending, as well as higher interest rates. Make your money work for you, and ensure you get more out of each transaction.
For instance, with the Singlife Account, you can earn a return up to 3.5% p.a*. Here’s how it works:
3% p.a. base return on your first S$10,000. For amounts above S$10,000, up to S$100,000, enjoy a base return of 1% p.a.
0.5% p.a. bonus return on your first S$10,000 when you top up at least S$800 each Top-up period!
4. Insure yourself
Setting aside an emergency fund – 3 to 6 months’ salary – ensures that you have access to funds that can help tide you over during unexpected events such as illness or unemployment.
Further enhance your financial security by purchasing necessary coverage for yourself. Besides medical insurance, you should get life insurance which is best purchased when you’re young and healthy as premiums are typically lower. In the unfortunate event of terminal illness or untimely death, life insurance gives you the assurance that you and your loved ones will not be saddled with bills. A payout could also be your dependents’ financial lifeline if you’re no longer around.
Scoring your first full-time job is wonderful, and once you’ve conquered budgeting, investing, multi-tasking your money and insuring yourself, you can say that when it comes to managing your finances, you’re officially an adult. Not only can you look forward to making every dollar you earn go further, you’ll also realise your financial goals with greater certainty.
Notes:
*Up to 3.5% p.a. = 3% p.a. (promotional base return on first S$10,000 of Account Value) + 0.5% p.a. bonus return from the Singlife Account Top-up Campaign. All campaigns are available from now until such time as updated by Singlife.
