In life, there are instances when some unexpected situations may come along, which could cost you a certain amount of money. These emergency expenses can be a pain to deal with since they add to our stress level, particularly if there is no way for you to settle them unless you take out a loan. But you have to realize that the things you need to go through before you can receive the amount you need.
Also, there are options to borrow some money from family members and friends or even from licensed money lender in Singapore. Sometimes when issues arise and you are unable to pay off your monthly commitment in time, you can always apply for Flexi Personal Loan or Quick Payday Loan to get through temporarily. But at the same time, you cannot simply rely on them whenever you have a financial crisis. If it is nothing but a small amount of cash, then borrowing a few dollars may be fine. However, if we are talking about several hundreds of dollars, it is not ideal to approach these people for money. Not only is it awkward to do so, but you may not even be capable of repaying them too easily. With the uncertainties in life, it only makes perfect sense to start growing your funds for your emergency expenses over time. This will spare you from headaches when you need to pay for an immediate expense, or even from embarrassment that borrowing money from loved one may bring.
In Singapore, it is ideal that you save a certain amount of money as your emergency fund, which should at least be 6 months worth your income. That length of time and cash value should suffice in case unplanned situations arise, which may lead you to secure cash for payment for such whether these are hospitalization bills, credit card payments, or even car repair costs. But you have to keep in mind that setting up your emergency funds cannot be very simple. You need to be very disciplined when it comes to saving some cash for emergency expenses, and the following tips may help at the same time.
1. Consider Getting An Additional Income Source
Does your job pay quite a little amount of money? If you are concerned about not being able to save much for your emergency funds because you do not make several thousands of dollars a month, then all it takes is some diligence to further increase your income. This is one way to address the dilemma without having to stress out about having enough savings or funds for emergencies. It may be possible for you to get a part-time job or even a simple business that will allow you to make extra money. This is ideal if you believe that your low income is preventing you from being able to save. After all, there are other things you may want to think of including your CPF deductions, among other items that limit your overall savings. There are always hurdles you must go through, and finding a possible solution to address your expenses while saving some money should be just what you need to do.
Once you make a few hundreds of dollars on the side, you will notice how much of a difference this will be to you. Getting a job as a hotel or restaurant receptionist over the weekend, or perhaps being an Uber driver are just some ideas on how to earn additional income. Some people even consider pet sitting or baby sitting as a means of growing their funds despite the low monthly salary.
2. Stick Within Budget
The difficulty with some people is their inability to setup a budget and sticking to it. Perhaps, the moment they receive their income, they have a strong urge to spend the money right away. They go to the mall, shop for clothes, shoes, and other items they do not really need, and then even before the next paycheck comes, there is not enough money left for the week. This is a trend some people go through, which can leave them struggling financially.
But if you are serious about having your emergency funds stable, then you will need to come up with a budget per week. Make a list of your basic needs and urgent expenses, and allot money for these. If you have extra cash, put this in your emergency savings. Then, if some cash is still left, you may use it as your spending money for little rewards you want to give to yourself. The idea is to prioritize your needs first, then save some for your emergencies, and the last would be for your “wants” list.
3. Save The Coins In A Jar – and watch it get full!
Perhaps you are the type of a person who dislike having to walk around with your jeans pocket full of coins. Aside from the annoyance of how heavy and jingling the loose change may get, they only tend to keep your wallet bulky. Who wants to carry a bulky and heavy wallet that is loaded with coins anyway?
A smart thing to do with your coins is to save them all in a jar. Dropping them in your coin bank may sound so childish, but it is a practical and easy way to save some money for emergencies. You can simply stick in loose change in your coin bank, then after some months, you will be amazed to discover the jar getting full! The same time can be done when it comes to your rebates, bonuses, and prize rewards. Just save these, and in the end, you will be glad to know how these add to your savings.
4. Make Use Of The Internet
Nowadays, buying and selling are made more convenient and faster with the help of the internet. You can easily purchase or sell items online anywhere or anytime you want. There is a plethora of online stores or other places where you can feature your items for sale or buy products. But if your goal is to grow your funds, you must be more focused on selling than buying. If you have underused, unwanted, or excess items in your closet, then you can simply post these items on the internet and get other people to buy them. There are online marketplaces to choose from, and it is only up to you to figure out which of these offer the most reasonable rates.
Start by inspecting your items. Categorize these under things you want to throw away, donate, keep, or sell. Decide on the price tag of each, then put the earnings into your savings or emergency fund. It may also be great to host a garage sale, so you can make additional income from those pre-loved items you have sold.
The moment you have your emergency fund established, it may be wise to keep some of your money to the Singapore Savings Bond (SSB). There is a profitable reward from doing so as keeping your emergency funds for at least 10 years will lead to an annual earnings of 2.6 percent. What’s more, it is possible for you to cash out the funds without having to worry about losing the interest your money has accumulated over the years.
By now, you have probably gained some ideas on how to grow your emergency savings even with a minimal income. All you need is some creativity, resourcefulness, and loads of discipline, so you can secure your future and not worry about having to loan money in times of tough financial situations.