Singaporean Millennials are generally well known for their fondness for affordable luxuries like avocado toast and lattes, but how are we really doing money-wise? On average, Singaporean Millennials spend $26 to $50 per month on dabao-ing food and have at least two subscription services. They spend less than $250 a year on clothing and accessories, don’t use car-share services, and buy coffee (and we don’t mean kopi) more than once a week. However, 17% have $5,000 or more in credit card debt. Research suggests 86.2% of Millennials in Singapore put aside at least 5% of their income each month. So a quick look at Singaporean Millennials’ spending habits suggests they probably don’t deserve the criticism they get on money; they are probably doing much better in wealthcare than most think!
But still nowhere close to being able to do this.
However, there’s definitely room for improvement, especially as research reveals 57% of Millennials and Gen Zs rely on basic, low-yield savings accounts for their investing. If you’re in your 20s, prioritising wealthcare is important. This is because taking a strategic approach from an early age gives you the best chance to achieve your goals even in uncertain times.
Wealthcare Strategies
Saving can feel impossible when you’re early in your career or still studying. However, if you have any income, you can put aside some money every month – even just a little.
1. Start Investing
Don’t think you have to have tens of thousands of dollars before you start investing. You can get started with a modest amount. High-interest savings accounts, stocks, bonds, mutual funds, and solid investments like gold are all options for growing your money and diversifying.
Remember, as always with investing, it’s about the compounding and your reinvested returns. So the earlier you start, the longer the time frame your money has to grow. You’ll also have more time to ride out declines.
2. Cut Expenses
Set up a budget and follow it. Use it to work out where you’re leaking too much cash. You could pack your own lunches, take the MRT or bus, and reduce the frequency of eating out/takeaway. Cancel unused subscriptions and cut power use around the house, especially air conditioning and lighting. Love to read? Get a library card instead of buying books. You’ll save on space too.
You don’t necessarily have to sacrifice everything and live like a monk, but substitution can save you big. For example, skip the long blacks or lattes and opt for kopi O or kopi siew dai to save over $1,000 a year. You can save a lot by planning your meals and doing shopping for the week based on what’s on sale. Use discount, sales, and coupons apps. Eat less meat (but keep your eyes open hor, some shops sell atas veggies that cost more than meat). Live simply and don’t be shy about buying secondhand items like furniture to save more. Remember your three best friends – Switching, Substitution & Reduction.
3. Increase Income
Learn an extra skill or volunteer for extra work to get more experience at work. Yes, yes, sounds insane, we know, given how busy we are already. But these strategies can boost your employability and promotability – and eventually your income. Another opportunity is to look for ways to generate income from what you already have. For example, you can rent out a spare bedroom, take on freelance jobs on weekends, and explore side gigs for an extra income stream. Once you’ve increased your income, don’t fall into the trap of lifestyle inflation. The whole point is to put away more money towards your financial goals.
If only asking for a pay raise is this easy…
4. Review Your Account Vehicles
Set up a savings account separate from your everyday account or have the money automatically deducted out of your account on payday. Never seeing the money reduces the temptation to spend it. Look for special features that let you save and grow your wealth more effectively. For example, with Hugo, you can choose to round up every transaction to save incrementally. You can also set up Money Pots for individual savings goals and have your savings invested in safe options like gold through Hugo Gold Vault.
5. Negotiate
Where there’s a will, there’s a way. Where there’s a way, don’t paiseh.
This is where you can be a little more thick-skinned. You have nothing to lose from contacting vendors to renegotiate a better contract. At best, you get to squeeze more value out of your contract. At worst, it’s whatever is original! Chat with your phone, electricity, power, and insurance providers and ask them for a better deal. Don’t be afraid to walk away—if they turn you down, start shopping around for better prices. If you save just $10 a month on four recurring bills, that’s an annual saving of $480 on your bills.
6. Refinance
Have debt? Look into refinancing. You could move your credit card balance to an interest-free card or consider lower-rate personal loans. If you already own your own flat, check mortgage rates and see if refinancing can save you money.
7. Delay (But Don’t Deny) Gratification
With buy-now-pay-later deals and credit cards around, it’s easier than ever to act on your impulses. You’re probably aware of the risks of consumer debt, but it’s worth saying this again: only buy things you’re going to use and only pay with cash you already have. Delaying gratification also allows you to better plan your buys, so you can take advantage of peak sales periods like Black Friday.
Practice controlling impulse shopping and always shop using a list when you’re doing the groceries. Give yourself time to think before you make bigger purchases. Keep items in your virtual cart for a few days before deciding to proceed. Try to visualise the cost in terms of the equivalent hours of work and ask yourself if you’re really going to wear or use the item.
Summing up…
Wealth creation and wealthcare aren’t about sacrificing everything you enjoy in life. With smarter spending and investing, you can make your hard-earned money go further while building your financial future. Start by setting up an emergency fund and funneling additional savings into an investment vehicle. With the power of compounding, your regular savings will grow faster, working hard for you. When the time comes to buy a house and plan for a family, you’ll be glad you started caring for your wealth early, in your 20s.
What if you could reach your 💰 without having to give up everything you enjoy in life? Hugo helps you spend less, save more, and grow your wealth without sacrificing the good things in life. 🍾🌴😎 Our wealthcare solutions help you discover wealth potential where others don’t. Join our guestlist today.