A budget can help you to identify unnecessary expenses and achieve your financial goals. It might be hard to adhere to your budget due to temptations and bad habits and that is why we came up with a few tips to make sticking to your budget easier!
1. Remind yourself of the long-term goal
Being frugal and spending wisely will result in big payouts in the future. The small amount you are able to save by terminating your cable TV subscription or gym membership (if you don't really utilise it) can be placed into your retirement account which will result in your financial well-being when you retire.
2. Make it a priority to pay your debts
Credit cards, school loans or other debts with high interest make your budgeting harder. Always remember to pay your bills on time to avoid late charges. If you are the forgetful kind, set up a GIRO to enable auto-deduction from your account.
3. Cut habits that cost money
Use an app to track on daily spending and you will be amazed at where your money is spent! These are not only the expensive items such as alcohol but also low-cost items like soft drinks or coffee. Try cutting down on the soft drinks and perhaps settle for instant coffee instead of those from cafes or coffeehouses.
4. Force yourself to save
If you find that you are always digging into your savings and lack discipline, get an endowment savings plan such as Singlife's MyLifeIncome, which allows you to pay premiums monthly. The benefit in this instance is forced discipline as you’re required to pay premiums every month. Better yet, set up GIRO for your premium payments and you definitely won't forget.
5. Review your budget regularly
Know your financial situation at your fingertips. This enables you to know how much you have left in your budget and restricts your desire to spend.
6. Sleep on your purchases
Instead of making impulse purchases, go home and give yourself a week to think and rationalise. If you made the decision to purchase it, you can always go back and get it.
