Alwin Goh
Singapore’s a fantastic city, but let’s be honest – it can be tough on your wallet! Even with a decent paycheck, those living costs add up fast. But don’t worry, this post is all about changing that. We’ve got a bunch of tips to help you save, even if you’re not rolling in cash.
You see, Singapore’s always popping up on those “most expensive cities” lists, even beating out places like New York. That means those everyday buys can sneakily drain your bank account.
But here’s the good news: there are tons of ways to stretch your dollar further. So, keep reading for our best secrets to saving money in Singapore.
8 Tips You Can Follow to Effectively Save Money in Singapore
1. Create Separate Bank Account For Your Savings
Creating a budget plan is vital, however let’s be honest, sticking to it can be tough. With the convenience of cashless payments, it’s easy to overspend.
Here’s a smart strategy: open a dedicated savings account that’s separate from your everyday spending account.
You know, stashing some cash away really comes in handy. It helps you avoid those spur-of-the-moment buys and keeps your spending on track.
Also, many Singaporean banks offer higher interest rates on savings accounts compared to basic transaction accounts.
Knowing your savings are safely growing while your spending is in check provides a sense of financial security.
How You Can Save Effectively:
- Set Up Automatic Transfers. Schedule automatic transfers from your spending account to your savings account each payday. Even small amounts add up!
- Choose the Right Account. Explore different savings accounts offered by Singapore banks. Look for competitive interest rates and features that fit your needs.
Discover also: Saving Money In Singapore: Easy Ways To Grow Your Savings
2. Commute Early To Get Discounted Ride
Beat the morning rush and save on your MRT fares with morning pre-peak discounts.
If you’re always squeezing onto crowded trains during the morning peak hours, there’s good news! You can save up to 50 cents on your MRT fares just by traveling earlier.
Since 2017, the Public Transport Council (PTC) has offered pre-peak discounts to help ease the morning crush. All you need to do is tap in at any MRT station before 7.45 am on weekdays (don’t forget, public holidays don’t count!).
How much can I save?
The savings depend on how far you travel, but it could be up to 50 cents off your regular fare.
Let’s check an example:
Say you usually travel from Jurong East MRT station to Bishan MRT station in the morning:
- Distance: 16.6km
- Regular Adult Fare: $1.96
- Morning Pre-Peak Fare (before 7.45 am): $1.46
That’s a 50-cent saving just for getting up a bit earlier! Senior citizens and students save even more.
So, why not give it a try? Beat the crowds, snag a comfy seat, and save some cash on your morning commute. It’s a win-win.
For more details, visit the PTC website here.
3. Give 24-Hour Rule A Try To Fight Impulse Buying
We all love a good deal, but those impulsive purchases can add up fast and eat into your savings.
Here’s where the 24-Hour Rule comes to the rescue! Before you swipe your card at that Orchard Road sale or click “add to cart” online, hit pause. Give yourself a full 24 hours to think it over.
You’ll be surprised – often that “must-have” feeling disappears, and you realise it wasn’t such a great deal after all. This simple strategy can help you avoid buyer’s remorse and keep your hard-earned cash in the bank where it belongs.
Here’s how it works:
- Tempted by that new handbag or those limited-edition sneakers? Don’t give in on the spot.
- Walk away (or close that browser tab!) and come back to the decision a whole day later.
- If you still really want it after 24 hours, then maybe it’s a worthwhile purchase.
Give the 24-Hour Rule a try. You might be surprised at how much money you save.
4. Set Up A Timely Reminder For Your Bills
Staying on top of bills is a simple but effective way to avoid unnecessary charges and maintain a good credit history.
Avoid those pesky late payment fees. Here’s how to stay on top of your bills in Singapore:
- Many utility providers and recurring services (think electricity, phone bills, etc.) let you set up automatic GIRO deductions. This ensures your bills are paid on time without you having to lift a finger.
- Set calendar reminders. Use your phone’s calendar or a dedicated app to set reminders a few days before each bill’s due date. Many banking apps also have this feature built-in.
- Check for e-bills and SMS alerts. Opt for electronic bills when you can. Many providers will send email and/or SMS reminders when a bill is issued and as the due date approaches.
Additional things to keep in mind:
- Condo maintenance fees. If you live in a condominium, don’t forget to factor your monthly maintenance fees into your reminders!
- Credit cards. These can be especially tricky. Consider setting automatic payments for the minimum amount due, and then manually paying off the balance in full when you can.
5. Score Exclusive Credit Card Perks in Singapore
Singaporeans love a good deal, and credit cards provide a surprising number of them.
Here’s how to unlock those sweet perks:
- Know what motivates you. Are you a frequent flyer aiming for a free upgrade? A foodie looking for restaurant discounts? Do you love shopping and want cashback on your daily spending? Determine what rewards will get you most excited.
- Choose cards that match your lifestyles:
- Travel: Cards offering air miles, airport lounge access, and travel insurance are a no-brainer for jet setters.
- Dining: Look for cards with special discounts at your favourite restaurants, or those offering generous rewards on dining spends.
- Shopping: Cashback cards let you earn money on everyday purchases, while others offer points redeemable at major retailers.
- Petrol: If you’re a driver, consider cards with fuel discounts at your preferred stations.
Moreover, many cards tempt you with big signup offers like cashback, bonus miles, or even gadgets. Factor these into your decision.
Moreover, many cards tempt you with big signup offers like cashback, bonus miles, or even gadgets. Factor these into your decision.
Don’t just go for the first shiny card. Compare annual fees, interest rates, and reward structures across multiple banks.
6. Say “NO” To Sky-High Credit Card Interest.
Credit card interest can become a financial black hole if you’re not careful. Here’s how to break free:
- If Possible pay your credit card bill in full each month. This is the absolute best way to avoid those nasty interest charges and build healthy financial habits. Discover also: how to clear credit card debt with a personal loan in Singapore.
- Spending within your means. Practise mindful spending. Only charge what you can realistically afford to pay off when the bill arrives. This protects you from spiralling debt.
- Zero-interest deals. If you’re carrying a balance, explore cards with 0% interest periods for new purchases or balance transfers. These can give you some breathing room to aggressively pay down debt.
- Watch out for fees. Always read the fine print on 0% interest and balance transfer offers. There might be initial fees, and the 0% period usually has a time limit. Compare carefully to ensure the deal saves you money overall.
Extra tips:
- Set up automatic payments: Opt for automatic payments for at least the minimum amount due. This protects you if you forget a due date. Then try to pay more than the minimum whenever possible.
- Negotiate with your bank: If you’re struggling, contact your credit card issuer. They might be able to offer a temporary hardship program or a lower interest rate.
Credit cards are powerful tools when used responsibly. Taking control now will save you money and stress in the long run.
7. Go Green, Save Green: Reduce Your Electricity Bill & Help the Planet
With hybrid work becoming the norm, many of us are using more electricity at home. Here’s how to save money while becoming an energy-saving hero:
Step 1: Know Your Usage
- Track your bills. Check your monthly electricity bills to see your consumption patterns. Are there spikes or unexpected increases? This helps you target areas for improvement.
- Smart meters to the rescue. If you have a smart meter, take advantage! These usually provide detailed breakdowns of your energy use, making it easier to spot energy-hungry culprits.
Step 2: Simple Habits, Big Impact
- Unplug devices when not in use. Even standby mode drains energy. Power strips with individual switches make this a breeze.
- Go energy-efficient. Look for the NEA Energy Label on appliances. More ticks = more savings! Prioritize replacing old, inefficient appliances first.
- Embrace the light. Switch to LED bulbs, they’re brighter and use way less energy than traditional ones. And remember, turn off lights in empty rooms!
- Use air conditioner wisely. Every degree lower can significantly increase energy use. Keep your AC at 25°C or use fans whenever possible. Regular servicing also keeps your AC running efficiently.
Why bother?
Even small changes add up to big savings over time. Moreover, electricity generation has an environmental impact. Reducing your consumption means reducing your carbon footprint.
Finally, knowing you’re doing your part for the planet and your wallet is a win-win!
8. Maximise Your Tax Savings: Top Up Your CPF & SRS!
Want to reduce your tax bill? Here’s how topping up your CPF and SRS accounts can help:
CPF Top-Ups
- Cash top-ups = tax relief. Put extra cash into your own or your loved ones’ CPF Special Account (SA) or Retirement Account (RA) and claim tax breaks!
- Timing is everything. Top up in January! CPF interest is paid in December, so the earlier your money is in, the more interest you’ll earn all year.
- Family benefits. You can usually claim relief for spouses/siblings earning under $4,000 annually (handicapped dependents excluded). Parents, grandparents, and in-laws are always eligible.
- Important cap. $8,000 is the maximum tax relief you can claim each year with CPF top-ups.
Boost Retirement Savings with SRS
- Tax relief for saving. The Supplementary Retirement Scheme (SRS) lets you save for the future and get tax breaks in the present. Every dollar you put in = a dollar off your taxable income.
- Contribution limits. Singaporeans/PRs can contribute up to $15,300/year, foreigners up to $35,700/year.
- Overall limit. Remember, all tax reliefs combined can’t exceed $80,000 annually.
SRS Investing for Growth
- Don’t just save, invest. Leaving your SRS money idle earns minimal interest. Put it to work in options like bonds, shares, Singapore Savings Bonds, and more.
- Maximise retirement funds. Withdrawals after the retirement age (currently 62) are only 50% taxable.
Read also: CPF Personal Loan: What Is It? Eligibility and Requirements
The Bottom Line
Living it up in Singapore is awesome, but let’s be honest, it can make saving a bit tricky. The good news is, with a few tweaks and the right attitude, you can totally reach your savings goals. It’s all about making small changes, taking advantage of those sweet deals and free stuff Singapore has to offer, and using any savings programs you can find.
