{"id":5588,"date":"2024-02-11T17:45:00","date_gmt":"2024-02-11T17:45:00","guid":{"rendered":"http:\/\/www.investollo.com\/?p=5588"},"modified":"2024-02-22T06:48:11","modified_gmt":"2024-02-22T06:48:11","slug":"5-things-need-start-improve-financial-standing","status":"publish","type":"post","link":"https:\/\/www.areyouready.sg\/5-things-need-start-improve-financial-standing\/","title":{"rendered":"5 Things You Need to Start Doing to Improve your Financial Standing"},"content":{"rendered":"\n<p><strong>Key Takeaways:<\/strong><\/p>\n\n\n\n<ul>\n<li>Financial health is built on budgeting, saving, investing, and managing debt.<\/li>\n\n\n\n<li>Regular financial check-ups and goal setting are essential.<\/li>\n\n\n\n<li>Smart money management leads to financial security and freedom.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>How can you effectively manage your money to improve financial health?<\/strong><br>To improve your financial health, adopt a robust money management strategy that includes budgeting, saving, investing, and debt management. Regularly review your finances, set realistic goals, and make informed decisions to ensure long-term financial security and freedom.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Effective money management is the cornerstone of financial well-being. By mastering the essentials of budgeting, saving, and investing, and by keeping debt under control, you can turn your financial goals into reality. This proactive approach to finances not only secures your present but also paves the way for a prosperous future, allowing you to enjoy the peace of mind that comes with financial freedom.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><span style=\"font-weight: 400;\">If you are in your early 20s, you might want to start planning your finances &#8211; you do not really have a long way till retirement. Early financial planning can help you in the long run, particularly due to what we call the &#8220;power of compounding&#8221;.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>5 THINGS YOU NEED TO START DOING now!<\/b><\/h2>\n\n\n\n<p><b><b>1.Track your Expenses.<\/b><\/b><\/p>\n\n\n\n<p>This is one of the most important things that you should start as part of controlling your personal finance. Without tracking where your money is flowing to, you will never be able to find the areas where you are spending excessively. It will also help you keep track if you are going to exceed your budget for the month.<\/p>\n\n\n\n<p>As you continue this habit of tracking your expenses, you start to create a conscious psychological note to yourself that you should be spending within your budget.<\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Everything starts small. <\/span><\/p>\n\n\n\n<p><b><b>2. Create a Savings Account with Automated Transfer.<\/b><\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Most people save money every month this way:<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Income &#8211; Expenses = Savings<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">However, it is better to think about how much you want to save each month, save it and then spend what is left over. Consider changing your savings pattern to:<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Expenses = Income &#8211; Savings<\/span><\/p>\n\n\n\n<p>Keep saving a fixed amount every month, preferably 10% of your take home pay.<\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">As your pay increases over time, increase the amount you save proportionately (10%) or exponentially (more than 10%).<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Set up a new savings account in additional to the account that receives your salary.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Setup an automatic transfer in your Salary Account to automatically transfer a part of your salary into your Savings Account every month during payday.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">This money can be your rainy day fund, investment or retirement fund, down payment for your future home, or any other purpose that can help you in the long run.<\/span><\/p>\n\n\n\n<p>You might want to read one of the post we wrote earlier about <a href=\"http:\/\/www.investollo.com\/advice-to-the-young-from-hong-kongs-richest-man-likashing\/\" rel=\"nofollow noopener\" target=\"_blank\">teachings from Mr Li Ka Shing<\/a>.<\/p>\n\n\n\n<p><b><b>3.Make Use of Credit Card Rebates and various promotions.<\/b><\/b><\/p>\n\n\n\n<p>Many think that credit cards are a taboo when it comes to financial management. However, they are actually one of the best tools you can have to improve your financial position.<\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">When used correctly (paying the bills on time etc), you can actually earn cashbacks and rewards provided by the credit card companies and banks.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">However, if you are unable to pay your credit card bills every month, the interest charged by the financial institutions can easily cripple your financial position.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Based on your income and age group, there are several credit cards in the market which you can apply for. Here is http:\/\/www.moneysmart.sg\/credit-cards&nbsp;<\/span><span style=\"font-weight: 400;\">which you can visit.<\/span><\/p>\n\n\n\n<p><b><b>4.Improve your Financial Literacy.<\/b><\/b><\/p>\n\n\n\n<p>Financial literacy is one of the key to financial freedom. Having knowledge opens up avenues for you to different investment tools and allows you to understand how to manage financial risk based on your own risk tolerance.<\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Never stop learning about financial planning and investments. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Benjamin Franklin once said \u201cAn investment in knowledge pays the best interest.\u201d<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Also read:&nbsp;<a href=\"http:\/\/www.investollo.com\/escape-rat-race\/\" target=\"_blank\" rel=\"noopener nofollow\">How to get out of the Rat Race?<\/a><\/h4>\n\n\n\n<p><b>5.Get Out of Debt.<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\"><br><\/span> <span style=\"font-weight: 400;\">Yes. As cliche as this sounds, the fastest way to get returns on your money is to <a href=\"http:\/\/www.investollo.com\/repayment-assistance-scheme-in-singapore\/\" rel=\"nofollow noopener\" target=\"_blank\">repay <\/a><\/span> <span style=\"font-weight: 400;\"><a href=\"http:\/\/www.investollo.com\/repayment-assistance-scheme-in-singapore\/\" rel=\"nofollow noopener\" target=\"_blank\">your debts<\/a>. The returns are the interest on your debt you avoided paying.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Debt management is imperative for financial success. Besides the cost of an education <\/span> <span style=\"font-weight: 400;\">and a primary residence, if you are unable to pay by cash do not make the purchase. <\/span> <span style=\"font-weight: 400;\">As far as the other two are concerned, it is better for you to pay off your education <\/span> <span style=\"font-weight: 400;\">loan before you buy a home.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">When it comes to property, do not stretch your budget. &nbsp;Make a purchase that you can easily afford and pay it off. For Singaporeans, there is a robust system in place (<a href=\"http:\/\/www.investollo.com\/cpf-schemes-singaporeans-should-be-aware-of\/\" rel=\"nofollow noopener\" target=\"_blank\">Central Provident Fund &#8211; CPF<\/a>) and the housing loans that are carefully structured to cater to one&#8217;s personal requirements. Source for one that suits you in terms of its repayment schedule. Make sure it is within your payment means. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">A right mindset and attitude are the most important tools you can have to help you in your financial journey. Once you have these, you will be well on your way to building a secure financial future. While the journey is long and not always easy, be sure to take the time to appreciate what you have. It is also crucial to savour the small victories that will help you stay on your long-term course.<\/span><\/h3>\n\n\n\n<p>Article by Chee Siang<\/p>\n\n\n\n<div class=\"thim-newlleter-homepage\">\n<p class=\"description\">Subscribe now and receive weekly newsletter with investment tips, new courses, interesting financial articles, popular ebooks and much more. All these from Investollo Financial Portal.<\/p>\n<p><\/p><\/div>\n\n\n<p>[mc4wp_form id=&#8221;3101&#8243;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways: How can you effectively manage your money to improve financial health?To improve your financial health, adopt a robust money management strategy that includes budgeting, saving, investing, and debt management. Regularly review your finances, set realistic goals, and make informed decisions to ensure long-term financial security and freedom. Effective money management is the cornerstone [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5589,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,11],"tags":[],"_links":{"self":[{"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/posts\/5588"}],"collection":[{"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/comments?post=5588"}],"version-history":[{"count":1,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/posts\/5588\/revisions"}],"predecessor-version":[{"id":8314,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/posts\/5588\/revisions\/8314"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/media\/5589"}],"wp:attachment":[{"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/media?parent=5588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/categories?post=5588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/tags?post=5588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}