1) It builds financial discipline, reducing the chances of wild spending sprees; 2) it prevents any extra expenses arising from late charges, penalties and the like; and 3) it helps you get started on important savings goals, such as your emergency fund.
Also, don’t underestimate the power of timely bill payment. Missing a payment or two can seriously mess up your budget for next month, which can trigger off a destructive debt cycle.
Did you know that as of October 2019, only 40 per cent of Singaporeans households have switched their electricity provider? Why is this worth mentioning?
Because it means 6 out of every 10 households are paying about 20 per cent to 30 per cent more for their electricity.
If you’re one of those that have yet to make the switch, here’s a fun little exercise for you.
Have a look at your latest utilities bill, work out how much the electricity portion costs (the current tariff is 23.43 cents/kWh) and calculate what 30 per cent savings look like.
Then multiply that by 12. Congrats! You’ve just found the money for a brand new washing machine!
5. Ask for a raise
Even if you’ve been in your job for only a year, you can still ask for a raise.
If you do it properly, you may very well walk away with an increased paycheck, which is the single most crucial factor determining your financial well-being.
But if you fail to get a raise, it doesn’t matter. The whole point is to have an open chat with your manager on your career path, and what you need to do, what skills you need to hone to climb up the career ladder.