Many a times, we assume that we are financially responsible individuals and we are able to control our budgets through our expenditures. We budget beforehand so as to make a good use of our money. Most of the budgets are on our rents, food, transport, fees, fun moments and miscellaneous use. However, sometimes we misuse the budgeted money by spending it on unnecessary activities. At the end of it all end up spending more than we earn. Poverty checks in this way. This is known as a leaky budget.
In Singapore, people prefer online transactions, for example, shopping, booking tickets, paying for services and any other activity that is payable online. However, people often tend to forget that these services carry “concealed” costs that are ultimately charged at the end of a certain period, be it a week or a month. This does not mean you cannot control the cost of these services. In a bid to identify how to control this, when you are addicted to these online services, it is advisable to categorize them all into one bracket to make it easier when doing your personal accounting.
Singaporeans subscribe to digital magazines versions, online movies and for others, online gaming among many other online activities. There are automatic charged while at times charges are made weekly or monthly. In the automatic charges, money is split from bank accounts. Most businesses use credit cards.an example, magazines such as Harper’s Bazaar Singapore which cost from S$5.60 is considered a luxury. Such luxuries should not be included in the budget unless one has the extra luxury capital.
Cabled television is a service majority of the demography use. Houses, universities, restaurants, lodges, bars and even working areas such as backs use cabled televisions. Cable subscription, come in packages depending on one’s area of interest, for example sports, entertainment, music local and international news, local and international programming just to mention a few. Different packages come in different prices and the more channels one wants to watch, the more they have to pay to access them.
A vast population include the young generation who binge watch television. They love watching what is trending and most of these channels are unnecessary, meaning they add no value to people’s lives or are time wasters. This way they are unable to save their income by paying for the bogus extra channels. StarHub Go is a cable provider in Singapore which has the very popular HBO channel that air the “must watch” series of the millenniums such as the Game of Thrones among others. In order for them to view it, they must be able to pay for the premium channel subscription which includes more than just the HBO channel and this costs a minimum of 48.00SGD coupled with the cable box rent fee. This will incur quite a large dent in one’s monthly budget structure. In light of this, online streaming service, like Netflix, which is now available in Singapore is a better alternative and one can watch the movies and series anywhere and at any time.
One of the most important thing that is also quite easy to forget is the bank and its credit fees. One of the credit companies in Singapore like Easy credit Licensed money lender corporations in Singapore that are easily accessed by all its citizens. Easy credit licensed money is the leading money lender in Singapore and it gives out credit depending on one’s monthly income. For example, if your annual income is under 20,000 SGD your credit loan limit will be 3,000SGD and below whereas those who earn above S$ 120,000 have no credit loan limit. As good as this sounds, there is still a major catch in borrowing money for a credit company depending on the amount of loan one acquires. One must know that that a loan, whether from a bank or not, is a must pay in interest. That how the lenders make a living. An example, a Payday loan which is basically a salary advance from the credit company (loan that is given to those who are still working and can prove that they earn income) may seem like the ultimate monthly solution but at the end of the month when your pay is scheduled the credit company will take your salary and some extra cash on top of that. This leads to a major void in monthly budget leave alone the salary.
Money lenders in Singapore earn more profits than the banks even though they give easy credit to people without asking for a lot of collateral. Moreover, banks tend to charge Singaporeans because they are businesses. The banks get extremely costly, especially when the economy goes down, banks tend to upgrade charges on their customers in order to maintain their operational expenses. Being able to actively identify and avoid these charges is important because something as little as 2SGD monthly can cause a major rift in a person’s annual income.
Investments are a major part of improving one’s life and ensuring that even in unemployment people live a normal life. However, in order to be able to
Make a living from the investments, there are major financial deposits we must incur more than just once. In Singapore, insurance solutions such as deposit insurance are offered by banks, insurance corporations or money lenders. This is a case whereby, a non bank depositor’s money can be insured for up to 50000SGD per person and the deposit must be in Singapore Dollars (SGD). Though the banks in Singapore have never experienced any major financial setbacks, it is never a sure thing that they cannot experience it. These financial solutions can be paired as investments because the cost of incurring monthly premiums is something that many people tend to forget. That said, it is important that we are able to choose and decide on proper investment policies that will not jeopardize the state of our finances.
All these considered, it is fair to say that planning and monitoring of our finances is one of the most important and overlooked activities. Despite the fact that some services like money lending and banking may be beneficial to the people of Singapore, it should still be considered that these companies are still paid to help the people with their finances, and it is these costs may lead to major budget leaks. Spending money wisely below or at one’s budget also helps patch up the leaky budget. Avoiding some costs will not make a person live less compared to others.