5 money-saving tips for millennials in Singapore

This article was originally on GET.com at: 5 Money-Saving Tips For Millennials In Singapore

We've all seen articles about millennials, but who exactly are they? The term 'millennial' is used to describe those who were born between 1980 and the early 2000s, this generation is also known as Gen-Y.

The reason we are hearing so much about them is because millennials are one of the largest generations in history and due to the huge amount of changes this generation is going through, they've got quite a different worldview compared to previous generations.

A key difference is the way millennials think about money. According to Goldman Sachs, millennials will have less money to spend due to lower employment levels and they are more encumbered with debt.

While obviously the fortune of millennials in Singapore is not written in the stars, here at GET.com, we have 5 money-saving tips to help you get a good start towards a financially-secure future.

1. Automatise your savings and payments

With millennials being a tech-savvy bunch, it'll aid greatly if you are able to automatise your banking transactions so that you do not need to think about it every month.

A great way to ensure that you save money each month is to use an automatic savings account like the DBS eMySavings Account.

It provides a convenient way for you to save money automatically every month with a preset amount. And if you happen to need more money that very month, it's easy to adjust your savings amount and crediting date online as well.

For those of you who have a credit card, you should similarly pay your credit card bills via Giro so that you do not miss out on your credit card payments and end up paying interest fees and late charges.

Asia's 10 richest millennials

  • 10. Zhu Yufeng: Net worth: US$660 million (S$902 million) Country of origin: Hong Kong Source of wealth: Inheritance
  • 9. Zhang Kangli: Net worth: US$710 million Country of origin: China Source of wealth: Inheritance
  • 8. John Paul Joy Alukkas: Net worth: US$820 million Country of origin: India Source of wealth: Inheritance
  • 7. Yan Wu: Net worth: US$860 million Country of origin: China Source of wealth: Inheritance
  • 6. Ou Chen (Leo Chen): Net worth: US$1.1 billion Country of origin: China Source of wealth: Self-made
  • 5. Lin Qi: Net worth: US$2.2 billion Country of origin: China Source of wealth: Self-made
  • 4. He Zhitao: Net worth: US$2.7 billion Country of origin: China Source of wealth: Self-made
  • 3. Fuli Zong (Kelly Zong): Net worth: US$3 billion Source of wealth: Inheritance Country of origin: China
  • 2. Cheng Chi Kong (Adrian Cheng): Net worth: US$4.4 billion Source of wealth: Inheritance Country of origin: Hong Kong
  • 1. Yang Huiyan: Net worth: US$6.1 billion Source of wealth: Inheritance Country of origin: China

2. Set up a monthly budget

Setting up a budget is one of the most important things to do when it comes to managing your money. A budget helps you keep your spending in check and provides a handy guide for you to tweak your spending patterns should the need arise.

3. Make paying off your debts your priority

One of the common types of debt that millennials incur are student loan debts. Student loans can be a drag on your finances, especially if you only pay the minimum $100 a month.

While it could be difficult for you as a fresh graduate to fork out 50 per cent of your salary to pay off your student loan, aim for about 20 per cent to 30 per cent so that you can clear it as soon as possible and move on to achieving other financial goals.

10 ways to save $20,000 a year in your 20's

  • One advice I gave my closer friends was to borrow the money from their parents instead, and pay off the bank loan asap. At least that way, you save on interest rates.
  • If you can't teach, what about doing something else that you're good at? There's a huge supply of part-time jobs out there, but few people are willing to spend their extra time on that.
  • As a general rule of thumb, aim to have at least 3 times of your monthly expenses in your emergency fund, kept aside for rainy days.
  • If, like my colleagues, you smoke every day and go drinking on Fridays and Saturdays, that can easily cost you over $300 in a month!
  • 10 ways to save $20,000 a year in your 20's-4
  • There's nothing to be ashamed of in telling people that you're on a budget, saving up to repay your study loan, saving up for a new car, or a wedding.
  • You eat 3 times every day. And where does all that food go? Down the toilet bowl. Whether or not you spend $20 on a cafe lunch or $3 on a plate of Hokkien Mee, everyone knows the outcome of your food is still the same.
  • If you're thinking of buying insurance, I suggest you speak to an honest agent first who won't give you all the fluff about each policy.
  • Ditch that gym membership. Do you really need that manicure/facial/spa package? And why are you still paying for premium cable TV when you're barely home to watch it?
  • I can never justify paying $10 for a popcorn or $8 for nachos when I know I can get them cheaper before or after the movie.
  • Seriously, why on earth do you need an iPad, iPod or a Kindle when you already own a laptop and mobile phone? And unless you're a professional photographer, you will never get back the money you spent on buying your DSLR.

4. Don't feel like you have to say 'yes'

We all want to be part of a group and feel like we belong. This can put undue pressure on millennials to say 'yes' for fear of missing out.

It can be simple things like agreeing to an impromptu weekend trip to Bangkok, opening bottles of liquor while out partying or splurging on the latest gadgets.

Being able to say 'no' when you don't want to do something is part of the growing up process, it will also help you stay grounded and not spend beyond your means.

5. Travel, but do it on a budget

As millennials are more likely to put off marriage and buying their first home till a later age, that leaves them with more disposable income to travel.

If you are are a young millennial who has caught the travel bug, take heart that there's always a way to see the world without having to use up all your savings.

Simple tips like buying your air tickets ahead of time to take advantage of promotions, using the right travel credit cards to get travel discounts and free travel insurance, as well as staying in cheaper accommodations such as B&Bs, backpacker hostels and couchsurfing will save you lots of money while travelling!

Here are the two best credit cards for budget travellers in Singapore.

If you want to travel somewhere on a budget and you don't want to go too far, take a look at these 4 affordable getaway destinations close to Singapore.

And if you want more details and travel tips about some popular (and cheap) destinations, read our travel guide to Ubud, Bali, our travel guide to Bangkok, and our travel guide to Hong Kong.

5 things young Singaporeans waste money on without realising it

  • Out of the Top 10 most common Facebook messages that pops up on my timeline is the exhortation to please buy the remaining 6 months of someone's gym membership since they never use it/they are leaving the country/their significant other has quit the gym.
  • But seriously, the real reason people are always trying to offload their memberships is that most of them signed up due to predatory sales tactics of gym salespeople.
  • Only to later discover that they just didn't have the time/energy/will to drag themselves to a work out.
  • I even know someone who purchased a lifetime membership for, well, more than what some Singaporeans earn in a year. He hardly goes.
  • If you're an avid online shopper, you already know for a fact that when you buy clothes online, you can expect at least 10 per cent to 20 per cent of your buys to look significantly worse than you thought they would.
  • A friend of mine who spent the whole of last year addicted to Taobao has reportedly thrown away every single one of her buys, including two Prada bags she paid $500 for that turned out to be fakes when the handle got ripped off of one of them.
  • Despite the relatively low price of some online clothing stores, be aware that you might end up spending a lot more in the long run due to clothes that look way worse than you predicted.
  • Dining as a group can be tricky. When someone wants to share a few appetizers, nobody wants to be a wet blanket by saying they'll stick to their mains. And most of the time, if the bill is shared equally amongst you, you'll end up paying for their share even if you didn't eat or explicitly agree to adding additional items.
  • This one is for the ladies (mostly). In most of my office jobs, I couldn't help but notice how so many of the ladies-interns included, had perfectly manicured nails.
  • Okay, I can understand how examining your nails throughout the MRT ride to work can help to take your mind off the crowds, I guess.
  • But the main thing is that manicures are actually insanely expensive when you consider the fact that they only last 2-3 weeks max and are a rather non-essential embellishment that you can easily DIY.
  • Bringing lunch to work just doesn't happen anymore, and with the CBD area becoming more and more of a nightlife and entertainment district these days, lunchtime can feel like a high-stakes social game.

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