As we move through the first quarter of 2017, it might be a good idea to think about adopting a few new habits with regards to cash and savings.
Our incomings and outgoings can be constantly in flux with so many possible external influences, so it is good idea to go back and look over your old habits and maybe change the old for something new.
To help, we have put together a few pointers that may help you when it comes to forming new habits and help you save more for future spending.
The Long-term View
In a fast-paced life, we tend to focus on the here and now. The moment is where we live and make our money; therefore, we have a general focus towards the short-term view. However, when it comes to financial planning long-term view should be our focus.
As we are still in the early months of the year, now is the perfect time to plan the rest of the year or even beyond. After all, long-term investments bring a higher probability of return.
Never Too Soon to Think About Retirement
Keep your retirement goals a constant focus. Retirement is not the end, but rather the beginning of a more relaxing life. Your money habits should reflect this with each one leading to a planned outcome.
While there are many popular tools to help you with this such as the Central Provident Fund or CPF. Recognised both locally and internationally the CPF is a perfect place to start when planning your retirement and can help make that relaxing life a reality sooner than you think.
Where is Your Cash?
It is standard to have a “rainy day” fund kept aside for any difficult times that may occur. Yet with an ever-changing economic landscape you should think about savings as a more constant factor with regards to your money habits.
Financial experts recommend having at least 12 months of your monthly expenditure saved. This will give you a full year of safety and enough time to find a solution to many possible future financial problems.
Watch the Spending
With more online shopping options becoming available in Asia many find themselves falling victim to impulse buys and shopping sprees. Living in the moment might mean doing more than window shop, but in the long run, controlling your spending will mean having more to spend when you need it or when you finally retire.
Every once in while most need a reminder to hold back on the spending and focus on the saving but nobody is perfect.
Of all the habits we might employ with regards to our financial happiness, being realistic has to be the most prominent. Following a realistic path reduces disappointments and increases the possibility of success.
An example of this is having a realistic budget that you adhere to and maintain. Also doing a general review every six months is an effective way of keeping the budget effective, but remember that it is also prudent to review it if any life-changing circumstances occur.
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