5 Spending Habits That May Be Draining Out Your Savings

We all have good intentions when it comes to our money, but there are situations that makes us reach out for our savings account. If you are among the people who strictly abide with their budget and have extra savings for emergencies, then kudos to you. But if you always find yourself struggling just to maintain your funds, then you might be doing these bad spending habits that may be causing havoc in your savings account.

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  1. Spending Over Your Budget. One of the main reason why you often find yourself draining your savings is because you often fail to stick to the daily and weekly budget that you allocated. You often spend beyond your means just to purchase trivial items. While you may reason out that you’ve only spent a few bucks, such spending will still accumulate and before you even know it, you’re already dipping your hands into your savings because you’re already short on budget.
  1. Indulging in Impulsive Buying. Another habit that may be causing your savings to drain out is frequently giving in to the urge of making big and unplanned purchases. Luckily, this habit can still be remedied. Every time you’re faced with the dilemma of whether or not you should use your credit card or ATM card to buy a particular item, ask yourself this: “Do I just want it, or do I really need it?” Once you’ve distinguished your needs and wants, the decision-making will surely be a lot easier.

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  1. Following Food or Fashion Trends. If a particular trend has been flooding your newsfeed, there’s a big chance that you’ll try it at least once. Although this is fine, you should still remember to not fall too deep into its hype that you end spending much more than you should. Remember, it’s a fad and its time in the spotlight will surely end too. Wait for the time when it’ll be cheaper than the price it was originally sold.
  1. Dining Out Frequently. These days, food isn’t cheap and even if you’ve set to only spend several bucks for it daily, that will still be several bucks less than your budget within a given work week. So instead of dining in the nearest restaurant for lunch, why not cook and bring your own food in the office. Not only will this save you some bucks, it’ll also give you the assurance that you’re munching on a healthy and clean chow.
  1. Paying Past Your Due Dates. One reason why people who love swiping their cards end up having huge debts is because they often fail to pay their dues on time. Keep in mind that late charges often compound on interest that could result to more trouble when you miss another pay period. So before you start using your credit card again, ensure that you have everything settled to avoid problems in clearing your bills.

Establishing a good savings is actually easy. Just practise good spending habits, and you’ll be surprised as to how much your savings have grown in just a short span of time.

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Bad Money Habits You Need to Discontinue

Humans as we are, we all have bad habits. Since it is bad, there will always be consequences but you know what bad habit makes a long-lasting consequence? The answer is simple – bad money habits. If you poorly managed your finances because of bad money habits, you are in great trouble. You will not live in prosperity for long.

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Here in Singapore, there are many who successfully managed their finances and as a result, they became successful but there are others who still struggle every day to make both ends meet. For Singaporeans who are suffering from bad money habits, it is time that they break or discontinue it before it takes a toll in their life. The good news is that bad money habits can be broken. Here are some ways on overcoming it:

  • Do not live beyond your means: The secret of successful people is not spending or living beyond their means. You will know if you are living beyond your means if you have a lot of debts and out of cash. Your desire to keep up with your neighbours can have an impact on your finances. In simple words, do not overspend.

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  • Do not buy items you will not use: You have to think before you avail or buy things. Buying things that you will not use will be useless and a waste of money. For example, you signed for a gym membership that you rarely use or paying a cable package when you seldom watch it. The best solution is to write an inventory of where your money is going. You have to think of what to continue or discontinue.
  • Do away with impulsive buying: Impulsive buying is purchasing a good or service without thinking whether you need it or you can afford it. Yes, resisting the urge to shop is challenging but you have to overcome it if you do not want to live in poverty.
  • Do think about your savings: There are people who ignore the importance of saving. This is not good. You have to see and realize the importance of saving. When you put money aside for “rainy days”, you will not have problems. For a start, you can cut costs.

Hopefully the things above can help you with your money problems. We all struggle at some point in time but the difference is that there are people who manage it better than us. If you are really serious about breaking your bad money habits, it is time to act.

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How to Deal with Unlicensed Moneylenders

The Singapore Police Force (SPF) is seriously reminding the public to stay away from unlicensed moneylenders. In colloquial term, unlicensed moneylenders or loan sharks are called Ah Long. SPF announced that harassments made by Ah Longs reduced since 2009. In the last three years, SPF managed to arrest a number of people for illegal money lending and harassment.  This is the proof that SPF is relentless to tackle the situation and eradicate the menace caused by these people.

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Loansharking is the business of lending money at extremely high interest rates. This is illegal. Since this is illegal, you should not participate by lending money. SPF is doing its best to tackle the problem but it will not end as long as the public welcomes Ah Longs in their homes. If you are dealing with difficult times, do not consider Ah Longs. Here are some avenues of help that you can consider:

  • Family Service Centre (FSC)

The FSC can be a great help for families dealing with debts and gambling problems. This is not a financial or banking institution but the organization will help families with their debts by providing counselling. You can call them at 1800-222-0000.

  • Credit Counselling Singapore

If you need of credit counselling, you should look for Credit Counselling Singapore. The organization will help you with your credit issues. Do not hesitate to ask for help. You can call them at 1800-225-5227 for more information.

  • National Council on Problem Gambling (NCPG)

The NCPG is an institution that can help you with your gambling problems. Dealing with gambling problems is not easy. You need all the help you can get before you lose everything you own at the end of the day. You can call them at 1800-6-668-668.

  • National Addictions Management Service (NAMS)

NAMS will help you with your addictions. You need people that can understand you and help you to be better. You can call them at 6-6732-6837. Do not hesitate to come to them for help.

If you have information about loansharking activities, you should call the police. You can reach them at 1800-255-000 or you can simply dial 999 if you need immediate assistance. If you are worried that Ah Longs will get back on you, do not worry because the police can keep it confidential. You only need to call the NCPC (National Crime Prevention Council) number at 1800-924-5664.

The best way to keep away from Ah Longs is not to deal with them at all. They may provide easy solutions to your money problems but you have to think of what it will cost you.

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