You have been working so hard, and once the end of the month comes, you cannot help but get quite excited about the upcoming payday. It is quite natural to feel this way considering how a well-deserved time to unwind and perhaps shop for your favorite gadget, apparel, or other items can be a rewarding experience. Although there is nothing wrong about treating yourself to things you love to do the most such as shopping, dining, or travelling, it is still very much impotrant that you think about the potential consequences of splurging your precious dollars every time your paycheck comes. Just the fact that you have exerted all your time and effort on your day job should be an ample reason for you to think twice before you swipe that credit card or blow away this month’s paycheck.

Unfortunately, this is not something that seems to be in most people’s mind each time they receive their salary. The usual tendency among some individuals is to stretch their budget and spend their income up to the last cent. The last thing on their mind is to set aside a percentage of their paycheck and grow their savings or emergency funds. At the end of the day, this only leads to further financial issues as the habit of splurging every end of the month goes on.

It Pays to Spend Money Wisely

The choice is completely up to you. While all your peers may be more interested in splurging instead of saving during payday, you can tear yourself away from this culture and be more concerned about your financial health. After all, do you really need to accumulate things that barely even counts as a basic necessity? In fact, an excess of material goods purchased only end up as junk that add to your possessions to be disposed during the next garage sale.

If you take the time to reflect on the fact that your paycheck is the product of your hard labor, it will not seem so easy to want to spend it as fast as possible. This should curb your spending habits since you will realize that you had to go through those long hours of working at the office to finally hold on to your monthly salary. Thus, do you really want to give up too easily something that took you too long to earn?

Always remember that the way you live your life today will have a huge impact on your future. Do you want to retire before you are 50? Looking to spend your middle age in comfort and leisure? Then the time is now to make this happen. As we live in a material world, the only way to have the best days of your life during retirement is by growing your savings. Work towards financial security, which you can do so little by little. And the perfect time to start – whenever payday comes.

Making Things Happen

Now that you know the importance of saving and giving up splurging, let us look into concrete steps you can take to be smarter with your money. Here are a few of our surefire tips that may be worth applying in your daily life.

1. Set a budget and stick to it

Now you have several hundreds of dollars from your paycheck. Tomorrow, you have none. Where did you possibly go wrong?

It helps to have a thorough examination of what happens during the time you receive your salary and how you use it afterwards. The main reason why people are tempted to spend is the lack of a proper budget. You see, a budget can make a huge difference on how you spend and save your money. If you know clearly enough what you should be doing with every single dollar that you get every end of the month, then there is no reason for you to splurge it on unnecessary items.

For some people, it may mean having a list of things where they need to set aside their money for. But the most important thing about having a budget is sticking to it no matter what. Set a budget for a wide range of expenses you have in your day to day life such as food, clothing allowance, recreation and leisure, and eating out. But this is not the only thing you should do; you need to have a thorough examination on the amount you set for each item and decide whether it is sufficient or not. This way, you will not go beyond your budget or feel as though you are deprived because of the small amount you allot for a particular item in your life.

2. Determine your priorities

What are the things that mean more for you? Some people set a budget each month to save a certain amount they need to purchase that designer bag they have been eyeing for a while now. Others have a monthly budget to make sure they can grow their emergency and retirement funds. As for some other people, a budget is what they need to help them meet their day to day needs instead of having to take out a personal loan from not having enough cash at hand. Or you can always apply for payday loan, this is a better alternative as compared to some credit card loans too. (You may wish to take a look at the list of Licensed Moneylenders in Singapore

Envelope budgeting is a good technique to consider when you want to set aside money for a number of things in your daily life such as rental payment, groceries, utility bills, clothing, and a few others that you need. But overall, it is essential to establish your priorities and use these as a guide whenever you create a budget. If you prioritize having a stress-free and comfortable retirement, then you should focus on growing your funds to make this happen. Otherwise, you will encounter great pressure as your retirement years come closer.

3. Put away your income immediately

Automating your savings can be a smart way to steer clear of temptations to overspend your salary. This is what most financially independent people do – they make sure their salary is deposited straight to their savings account instead of receiving them in cold cash. When you do not see your money, it will be impossible for you to want to spend it all. When you have tangible cash, giving in to temptations to shop and splurge is easier.

Fortunately, Singapore offers a number of options whenever you wish to automate your paycheck. Once of these routes is by using the eMy Savings Account from POSB. This option enables you to automate your salary per month, and you can keep between $50 and $3,000 every “savings” date. Also, you have the freedom to select a schedule that works to your advantage and lifestyle. With a customized option when automating your paycheck, you can meet your specific needs and grow your money over time.

Bottom Line

It is quite typical for some people to get into the habit of overspending their paycheck and not worry about its implications to the future. With a number of choices to shop, wine, and dine in Singapore, it is not hard to reach rock-bottom with your salary and bank savings. But at the same time, you are bound to encounter greater challenges in life with your meager finances once life’s little surprises start coming in.

With all of these things in mind, make it a point to stop overspending your paycheck whenever it comes. Start setting a budget, prioritizing, and automating your income instead of spending it as fast as you can. With all your efforts, you will be able to slowly build your retirement and emergency savings, to be able to pursue financial freedom. The choice to save or spend is up to you, and there is nothing more practical than to consider the impact of your actions towards your savings and financial health.

Published On: November 14th, 2017

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